GLOBAL DEAL ON AVIATION EMISSIONS MUST BE ACHIEVED – ALTERNATIVES WOULD DEAL BLOW TO PASSENGERS AND ECONOMY, LBIA WARNS
Airports have issued a stark warning that a global deal on aviation emissions (to be discussed at Copenhagen in December) must be achieved. A report commissioned for the Airport Operators Association by leading economists OXERA will be launched in the City tomorrow (3 Nov) by a panel of aviation and business leaders. They will say that UK-only alternative measures would deal a severe blow to passengers and the wider economy.
The latest Department for Transport forecasts show that by 2030, there will be passenger demand in the UK for 434 million flights, an increase of about 3% a year. But if growth in flying were restricted to just 1.5% a year, a measure touted as a UK-only alternative to an international emissions cap, the report estimates that average return air fares could see a 40% rise from £258 to £360, by 2020.
Modelling work in the report shows that raising Air Passenger Duty (APD) is an equally bad alternative to an international cap. Bringing in a 5% a year "APD Escalator" would see a further £30 added to average return air fares by 2020. This would come on top of APD rises just brought in by the government and the further increases it has fixed for next November. Yesterday's rises see APD on flights to Europe up from £10 to £12, and to the States from £40 to £60.
In addition, under such draconian alternatives to an international deal, aviation's ability to boost the wider economy could be dealt a severe blow. By 2030 the UK would be up to £30bn a year worse off, lose out on £15bn in contributions to the Exchequer, and support 700,000 fewer jobs.
The study found that the aviation sector represents 1.5% of the UK economy, contributing £18.4bn towards UK GDP and providing jobs for 234,000 people. Aviation's capacity to create wealth has grown by 8.3%, in real terms, since 1995.
Tony Hallwood, Leeds Bradford International Airport's (LBIA) Commercial Director commented;
The important role that aviation plays in providing jobs across the regions
and driving inward investment to our island nation is critical to the
growth and strength of UK plc.
Leeds Bradford is proud of its role supporting and delivering increased air
connectivity both domestically and internationally to benefit both business
and inbound tourism across the yorkshire region.
With LBIA now providing direct air access to over 70 destinations, we are
truly enhancing the success of our regional economy and we look forward to
playing an increasing role in its future economic prosperity.
Commenting on the findings, AOA Chairman, Ed Anderson said: "Aviation should be part of a low carbon future, and a global sectoral approach is needed at Copenhagen. Aviation must grow sustainably, within environmental limits, and can be used to improve the performance of the wider economy by stimulating connectivity, trade and investment which in turn creates wealth and, jobs".
source: LBIA