Manufacturers back expansion of Heathrow
BRITAIN’S manufacturers are backing an expansion of additional capacity at Heathrow airport, believing it to be the best strategic fit for the manufacturing sector and the best option to secure a better balanced economy.
The call comes on the back of a new survey published by EEF, the manufacturers’ organisation and, ahead of next Tuesday’s deadline for the Airport Commission’s final consultation on options for the UK’s airport expansion.
Richard Halstead, Midlands Region Director at EEF, said: “Expansion at Heathrow is clearly the best option for business and the country overall. It soars ahead of all other options in terms of frequency of flights, range of destinations and ease of access. Manufacturers believe it is best to build on this success.
“Airport capacity is critical to industry for exporting and, ultimately, for the UK economy. The Airports Commission has tackled this issue through a detailed process with extensive consultation and its final recommendation demands full support from Government. Our economy cannot wait any longer and we now need spades in the ground as soon as possible.”
According to the survey, 79% of companies backed Heathrow expansion with a preference for Heathrow in every English region and Wales, as well as for every sector and company size.
When asked to choose from a range of options about why Heathrow expansion is preferable, 77% chose frequency of flights, 75% the range of destinations and 44% timing of flights. These are key elements of a ‘hub and spoke’ airline model, which is the structure for the majority of airlines operating from Heathrow. This has been recognised by a number of regional airports, which have publicly backed Heathrow expansion.
Additionally, a strong factor for backing further expansion (73% of companies) was the fact Heathrow is well placed on the strategic road network, allowing access from the vast majority of the country, a key aspect for freight.
The importance of aviation is especially vital to manufacturers, especially those with overseas subsidiaries and, those who are export intensive. According to Department for Transport figures 40% of non EU trade by value is sent by air.
However, regional airports such as Birmingham have been arguing that if additional capacity is allowed outside of Heathrow then new business opportunities will emerge. Birmingham has said the proof is evident because it is already winning more business as a result of its extended runway.
The long-term plan to open a railway station serving the new HS2 network also increases the attraction of the airport, it has argued.
Earlier this week the airport was critical of a new survey submitted to the Commission, claiming it offered a distorted picture of the UK’s aviation network because it failed to consider the case for regional expansion.
Birmingham Airport also has one high profile manufacturing advocate in Jaguar Land Rover chief executive Ralf Speth. He has said in the past he is fed up of wasting valuable time commuting to Heathrow when Birmingham is right on his doorstep.
Nevertheless, EEF said one of its previous surveys had shown three quarters of companies viewed aviation as either critical or important, whilst 97% of export intensive companies described aviation as critical or important. Furthermore half of UK owned companies with an overseas subsidiary say aviation is critical to their business.
It said that given the increasing importance of exports to manufacturers and, the UK economy, the importance of additional airport capacity would only become more critical.
