Inward investment chief backs Birmingham Airport expansion as new report warns of massive under-capacity
THE head of Birmingham’s inward investment has said expansion proposals for Birmingham Airport illustrate how serious the city is about boosting its economy.
Neil Rami, chief executive of Marketing Birmingham, which operates the city’s inward investment programme, Business Birmingham, said the proposal while radical, was necessary if the city and region was to realise its full potential.
The airport has proposed building a second runway and a new terminal in an attempt to boost passenger numbers up to 70m per annum. The process will begin with the extension of the present runway and improved connectivity to capitalise on infrastructure improvements such as high speed rail.
“Birmingham Airport’s proposal reflects how the Birmingham area is taking a lead in the UK’s aviation strategy debate and providing a practical solution to boosting local economic growth,” said Rami
“Birmingham’s existing connectivity helped attract over 50% more inward investment projects last year, but investors are telling us that they need more frequent flights to a greater number of destinations in order to grow here.
“The airport’s vision will support Birmingham’s sectors of strength. Indian businesses looking for a footprint in the city’s manufacturing sector, for example, are seeking direct links to the sub-continent. Life sciences companies rely on fast, frequent transport links between patients, their laboratories and research departments. Multinational financial services firms considering relocating their UK offices outside London need direct links back to their global headquarters.
“To realise its full economic potential – and remain competitive against other locations – Birmingham must offer direct, frequent and sustainable air links. This is a bold vision that could provide the confidence in our future that investors are demanding today.”
His comments come as the Airport Operators Association, the trade body for UK airports, has indicated Europe could be heading for a severe lack of airport capacity in future years.
Responding to the publication of the ‘Challenges of Growth 2013’ report from EUROCONTROL, which warns of a looming airport capacity ‘crunch’ across the continent, the AOA said 12% of demand for air transport or 1.9m flights might be not be met, leaving 237m passengers across Europe unable to fly.
This in turn would lead to a sharp increase in delays and congestion throughout the entire European network. It has named the UK as one of the countries where the aviation capacity crunch will be more acute.
Darren Kaplan, AOA chief executive, said: “These findings are very disturbing. Rather than airports having to lobby policy-makers for the right to grow, Europe’s governments should be encouraging the continent’s airports to provide the connectivity and capacity both now and in the future to deliver the connectivity required to link to existing and emerging markets.
“Demand for air travel will soon outweigh the supply in many parts of the continent, unless urgent action is taken by political decision makers to alleviate the problem. In the UK, for example, airports throughout the country are either full up already or face reaching capacity within the next 20-30 years – the UK government needs to respond to this challenge with unashamedly pro-aviation policies that promote growth in the sector and allow airports who wish to expand the opportunity to do so.
“Aviation in the UK contributes around £50bn GDP, a million jobs, and over £8bn tax revenues. It is of vital strategic importance to this country’s hopes of securing economic prosperity and sustainable, long-term growth. Without it, the UK will not be able to develop better links with developing countries and compete in what the Prime Minister has correctly described as the ‘global race’.”
