Manchester Airport boss hits back at Heathrow third runway claims

THE chief executive of Manchester Airport has hit out against claims made by Heathrow Airport that its third runway is crucial to the future of the Northern Powerhouse.

Speaking at IFB2016, London Heathrow Airport boss John Holland-Kaye told a business audience that if Heathrow were expanded, more passengers flying to and from UK regions could fly via Heathrow instead of having to fly via another international hub,  boosting trade by £1.7bn each year.

He said: “The government is going to struggle with the foundations of the Northern Powerhouse if a third runway isn’t built to support the region’s existing connectivity.

“To rebalance and strengthen the British economy, the UK needs a domestic hub airport that can compete with our unconstrained hub rivals abroad, and that’s something only Heathrow can deliver.”

He  cited research by Frontier Economics that claims the cost of inaction on airport capacity to the economy of the north equates to £710 m in lost import/export trade every year.

Holland Kaye’s controversial comments are at odds with Manchester City Region’s strategy of bringing more direct long-haul flights to Manchester Airport – the north’s largest international airport.

Ken O’Toole, chief executive of Manchester Airport, said: “Increasing the number of direct flights people and businesses have access to is key to delivering the Northern Powerhouse vision and rebalancing the UK economy.”

Only last week the airport celebrated the start of a long-awaited direct, scheduled flight by Hainan Airlines from Manchester Airport to mainland China.

Announced in October last year to much fanfare by the Chinese President on his visit to the UK,the new route has been welcomed by businesses, universities and tourism bodies across the whole of the north as a major milestone in the drive to create a Northern Powerhouse.

Experts say the Manchester-Beijing route is worth at least £250m in economic benefits to the UK over the next decade and that two-thirds of this will be felt directly in the northern economy in terms of increased jobs, economic activity and tourism.

O’Toole added: “There are numerous other examples of long haul carriers choosing Manchester to launch routes to key markets around the world, including destinations like Singapore, Hong Kong, Atlanta, Los Angeles, Boston and, from next March, San Francisco.

“These routes give the north direct access to global destinations without the inconvenience of having to travel to London and all of them have brought significant trade benefits.”

He also responded to Holland-Kaye’s remarks about capacity in the north, saying there is “ample scope” to grow Mancehster’s route network further and “drive a re-energised northern economy” by attracting more long haul services to global markets.

“That is particularly pertinent in the context of a congested South East, with no new capacity due to be delivered for at least 15 years, regardless of where a new runway is built. The best outcome for business and leisure passengers in the short, medium and long term will be to create a strong network of competing airports across the entire UK,” he said.

Update: upon publication of this article Heathrow Airport contacted TheBusinessDesk to clarify it’s own position.

A spokesperson said: “Manchester airport is going from strength to strength and we welcome the continued growth of direct services from there to destinations like Beijing. We have always been clear that as the UK’s global gateway, Heathrow complements that success – our role is to ‘fill the gaps’ with transfer traffic where local demand isn’t enough to sustain some routes.

“But because we’re at capacity, many people in the UK have to rely on booking connections via hubs in Europe, Istanbul and Dubai to reach long-haul destinations with only one stop, and that has a £1.7bn cost to the UK economy. That’s why Heathrow expansion enjoys the support of Leeds Bradford, Newcastle and Liverpool John-Lennon airports and is the right choice for a long-term plan to back every corner of the UK.”