Birmingham Airport can deliver millions more to the economy – report
BIRMINGHAM Airport is capable of bringing in millions of pounds worth of economic benefits to the West Midlands, research published today shows.
However, the growth is dependent on a complex set of factors including maximum capitalisation on the HS2 high speed rail project, reforms to Air Passenger Duty and the continued expansion of new routes out of the hub.
The benefits are outlined in a new report, ‘The West Midlands Aviation Opportunity’, produced to assess the potential of the expanded airport. Launched six weeks after the region released its HS2 Growth Strategy; this new report by York Aviation looked at five different scenarios for growth in first-of-its-kind research.
The report has found that Birmingham Airport contributed £1.7bn in GVA and 39,850 jobs to the UK in 2014. Across the West Midlands, its contribution was around £1.1bn and 25,300 jobs.
| Scenario | Resulting growth in the UK – GVA per year | Resulting jobs in the UK |
| Cutting Air Passenger Duty by 100% at non-congested English airports, alongside predicted cuts in Scotland and Wales, would result in the airport serving 2.9m more passengers by 2025 |
£521m by 2025 £331m in the West Midlands by 2025 |
12,000 by 2025; 7,650 in the West Midlands by same date |
| When complete, HS2 can enable Birmingham Airport to attract around 750,000 additional passengers |
£52m £34m in the West Midlands |
1,300; 950 in the West Midlands |
| If Midlands east-west journey times to Birmingham Airport were improved by 15% via new road and rail investment, passenger numbers at BHX could increase by 900,000 |
£63m £41m in the West Midlands |
1,600; 1,150 in the West Midlands |
| Expansion of long-haul connections to Birmingham Airport |
£425m £248m in the West Midlands |
8,000; 5,100 in the West Midlands |
| Having a Middle Eastern or Asian airline basing a hub at Birmingham Airport |
£292m £173m in the West Midlands |
5,400; 3,550 in the West Midlands |
Paul Kehoe, CEO of Birmingham Airport said: “This report clearly demonstrates the vast potential of Birmingham Airport as an economic driver, not only to the West Midlands, but to the UK as a whole. The impact of the airport is in the same bracket as the positive impact HS2 will have on our region and, as a region, we need to do everything we can to make as many of these scenarios become a reality.”
Paul Faulkner, CEO of Greater Birmingham Chambers of Commerce, picking up from comments he made at the Conservative Party Conference added: “Birmingham Airport is a vital cog in driving the Midlands Engine for Growth, providing the connectivity that our thriving businesses need to trade, export and secure investment.
“The central message of this report is that, to build on this success, our region must work hand in hand with central government to grasp new global opportunities for the country.
“Now is the time to work together to make the most of HS2, reform Air Passenger Duty and support the continued growth of new routes to destinations around the world, to plug our region into new markets and enable us to play our full part in rebalancing the economy.”
Andy Street, chair of the Greater Birmingham and Solihull LEP said: “The scenarios highlighted in this report show the contribution Birmingham Airport is making, and can make, to the future of our region. If we all work together I am confident we can create the right conditions for the airport to contribute significantly to the GBSLEP region in terms of growth and job creation over the next few years.”
He said the LEP was currently working closely with the airport and other partners across the region to maximise the benefits of HS2. It has also called on the government to invest in the new transport connectivity needed to make the most of this opportunity.
“This report shows how important getting this right is for our economy,” he added.
