submission - balanced aviation debate

Airports Commission
Proposals for making the best use of
existing capacity in the short and medium
terms – a response by Birmingham Airport
Contents
1. Response to questions relating to the amount,
and implications of, the additional traffic capacity
Birmingham Airport can deliver in the short to medium-term
3
2. Response to questions on the socio-economic effects
of making best use of existing capacity at Birmingham Airport
6
3. Response to questions on the surface access requirements
of making best use of existing capacity at Birmingham Airport
10
4. Policy recommendations for making the best use of
existing capacity at UK airports
12
Appendices – Air noise contour maps for Birmingham Airport
15
Endnotes
18
Airports Commission 1
17th May 2013
Dear Sir Howard,
The Greater Birmingham & Solihull LEP, Black Country LEP and Birmingham Chamber
of Commerce Group support Birmingham Airport’s submission to the Airports
Commission. Growth at the Airport is fully aligned with existing regional development
and transport investment strategies: GBSLEP’s Delivering Growth, Solihull’s M42
Economic Gateway, and the Black Country LEP’s Core Strategy.
Given its proximity and excellent connectivity with the South East, and its relatively low
utilisation, there is huge potential for making best use of Birmingham Airport’s spare
capacity. It is a viable option to relieve the capacity constraints that exist within the
South East and it is well positioned to take advantage of the current demand for travel
within its home region in the short to medium-term.
Supporting the growth of direct connectivity at Birmingham Airport will provide
thousands of jobs in an area of high unemployment, and provide the connectivity with
the rest of the world that our industrial base so desperately needs.
We look forward to working with, and continuing to engage with, your commission.
Yours sincerely,
Andy Street
Chairman
Greater Birmingham and
Solihull LEP
Cllr John McNicholas
Chairman
Coventry and Warwickshire
LEP Business Transport Group
2 Airports Commission
Stewart Towe,CBE
Chairman
Black Country LEP
Jerry Blackett
Chief Executive
Birmingham Chamber of
Commerce Group (BCG)
1. Response to questions relating to the
amount, and implications of, the additional
traffic capacity Birmingham Airport can
deliver in the short to medium-term
1.1 The amount of additional capacity
Birmingham Airport can add to the
UK aviation network
In response to the following Airports Commission
Short-term – Birmingham Airport can double in size to
18 million passengers per annum (mppa) by the Airports
Commission’s definition of the short-term. This will add
9mppa of long-haul capable capacity to the UK airport
network by 2018.
questions:
1. The amount of additional capacity likely to be
provided
2. The timescale within which additional traffic
capacity may be available
3. Alignment with longer-term options
Medium-term – Birmingham Airport can expand up
to 36mppa on the existing runway by the Airports
Commission’s definition of the medium-term. This will add
27mppa of long-haul capable capacity to the UK airport
by 2023.
4. Operational feasibility, with particular reference to
the continued ability to operate both UK airspace
and airports in a safe manner, as part of the
overall air traffic system
5. Any legal (UK or EU) or technical barriers to
implementing the proposal and whether these can
be overcome
Birmingham Airport considers that all of the above
developments could be operated within existing UK
airspace arrangements in a safe manner. Similarly,
Birmingham Airport is not aware of any legal or technical
barriers that would prevent these proposals from being
implemented.
The above short and medium-term proposals fit with the
longer-term options currently being progressed by the
Airport for submission to the Commission by 19th July 2013.
The 2003 Aviation White Paper identified Birmingham as a
location for future additional runway capacity. And one of
the key strengths of Birmingham Airport’s submission is
the extent to which our proposals can, to a large extent, be
“turned up” or increased in delivery speed in response to
government policy and/ or changes in passenger demand.
Table 1 – Birmingham Airport’s traffic capacity and timescale for expansion in the short and medium-term
Delivery
timeframe
Maximum
capacity (mppa)
Air Traffic
Movements
(ATMs)
Infrastructure requirements
Planning permission
0–3 yrs
18mppa
140,000
• Minor development works to taxiway and
apron system
• Small-scale growth, as and when required,
primarily for control authorities
Permitted development
Yes
3–8 yrs
27mppa
205,400
• Further taxiway works
• Some increase in apron and pier capacity
• Minor terminal extension works
Part permitted development,
some minor planning
application works required
Yes with minor
works described
Operationally
feasible
Runway extension consent provides planning permission to up to approximately 27mppa/ 205,400ATMs
Up to 10years
36mppa*
240,000
• Additional terminal development
• Further works to apron and pier capacity
• Subject to improvements in local transport
infrastructure
Variation of existing planning
permission required to
increase number of permitted
air traffic movements
Yes with minor
works described
* Maximum capacity from existing runway
Airports Commission 3
1.2 The implications of making best
use of additional capacity at
Birmingham Airport
One of many mitigation measures in place at Birmingham
Airport is the sound insulation scheme. Any local resident
exposed to air noise pollution within the 2002 63dB(A)
noise contour is eligible to modern acoustic insulation.
However, the sound insulation scheme has been in place at
the Airport prior to 2002, resulting in properties beyond the
2002 63dB(A) noise contour also benefiting from acoustic
insulation. Table 3 below shows the number of properties
predicted to fall within this 63dB(A) noise contour under the
various scenarios (as previously, these figures are calculated
on the 2007 fleet mix and reflect a very worst case scenario).
In response to the following Airports
Commission questions:
1. Changes to the number of people exposed to
aircraft noise by the proposal and the extent of the
noise to which they are exposed
2. Impacts on the emission of greenhouse gases
covered by the Kyoto Protocol
3. Environmental impacts affecting the health of local
populations, for instance in terms of air quality
To date, the Airport has already provided acoustic
insulation to reduce the impact of aircraft noise in over
7,000 local homes and sets aside an annual budget
to maintain and continue that process.
1.2.1 Noise
At Birmingham Airport, we pride ourselves on our efforts
to achieve a balance between the benefits that this Airport
brings to the UK, and the noise impact on the local
community that aviation brings. Our overriding objective
for managing noise is:
1.2.2 Greenhouse gases
“To work with our stakeholders, including the local
community and industry partners, to adopt the best
practicable means to assess, manage and minimise
the impact of aircraft noise, both now and in the future.”
Understanding and managing our environmental impact is
a high priority at Birmingham Airport. Carbon management
is fundamental to our operations and we take a
proactive approach to reducing emissions to improve the
environment. An important part of understanding how
Birmingham Airport can reduce emissions is to measure
what is currently emitted from our operations, on the basis
that “what gets measured gets managed”.
The figures above are from the Environmental Impact
Assessment for the planning application to extend
Birmingham Airport’s current runway. This planning
application has been approved, and the development
is well underway, with opening programmed for Spring
2014. The Commission should note that the noise contour
details above date from 2007, and include an old aircraft
fleet mix which would not be the case today. The figures
should, therefore, be taken as a very worst case scenario.
Our commitment starts with investment in systems and
equipment to enable us to understand our impact and
identify opportunities to reduce our environmental impact.
We are also committed to assessing the feasibility of
investing in renewable energy to reduce our reliance on
grid power. In 2011, we installed 200 solar panels on
the roof of the terminal building allowing us to generate
40,000 kWh. This will save approximately 22 tonnes of
carbon dioxide each year.
Table 2 – Number of people exposed to 57dB(A)1 noise contours due to additional capacity usage
Capacity utilisation (pax)
Air Traffic Movements (ATMs)
Area (km2)
Population
Households
13,079,000
148,001
20.9
34,600
15,150
20,939,000
181,791
27.5
43,700
19,050
27,189,000
205,400
34.3
55,150
24,000
36,000,000
Assessment at this level of use would inform the application for a variation to existing planning permission
Table 3 – Number of people exposed to 63dB(A) noise contours due to additional capacity usage
Capacity utilisation (pax)
Air Traffic Movements (ATMs)
Area (km2)
Population
Households
13,079,000
148,001
6.3
4,500
2,000
20,939,000
181,791
8.4
8,250
3,700
27,189,000
205,400
10.2
11,750
5,200
36,000,000
Assessment at this level of use would inform the application for a variation to existing planning permission
4 Airports Commission
Table 4 – GHG Emissions* data for period 1st April 2010 to 31st March 2011
Scenario
Tonnes of CO2e
Scope 1 – direct (gas, fleet vehicle and refrigerant gases
6,436
Scope 2 – indirect (electricity)
19,778
Scope 3 – indirect (surface access, LTO, procurement and waste and water treatment
177,852
Total Gross Emissions
204,066
*calculated using guidance issued by the Defra
Although we have no direct control over scope 3
emissions, we have a proactive approach to working with
passengers and partners to achieve emissions reductions.
In 2012, our non-car modal share was 32% and it has
shown an increasing trend over the last decade. This
reflects the hard work and collaborative efforts of the
Airport, the Local Authorities and Centro (the Passenger
Transport Authority) to improve and encourage access by
more sustainable modes.
We also have a programme dedicated to helping
airlines reduce CO2 emissions. By using a combination
of initiatives such as continuous descent approaches,
continuous taxi and reduced engine taxi, the Airport
can help airlines make savings of up to 1100kg of CO2
emissions per flight rotation. With the Airport handling
some 44,000 rotations a year, these savings could add up
to in excess of 48,000 tonnes of CO2 per annum. One of
the most successful initiatives is the MOSUN departure,
which is unique to Birmingham and offers Airlines the
ability to take an alternative flight route to destinations in
the South West, such as Portugal and the Canary Islands.
This procedure alone can save up to 70 nautical miles of
flying each way, as well as offering a continuous climb to
altitudes in excess of what otherwise would be achieved.
The runway extension planning application estimated that
at 27,189,000 passengers CO2 emissions from the Airport
would total 2.15mT (million tonnes). However, this estimate
took account of full flight emissions from departures (i.e.
total emissions from the Airport to the final destination),
which totalled 1.97mT of this 2.15mT total, leaving a total
of 0.18mT. This estimate also took no account of future
mitigation measures, such as energy saving on site, use of
electric vehicles or installation of renewable energy facilities
(in 2011, the Airport installed 200 solar panels on the
terminal roof to help power the terminal).
It should also be noted that a substantial part of
Birmingham Airport’s natural catchment currently travels
to other airports, principally Heathrow. The runway
extension planning application estimated that increased
growth of Birmingham Airport and “better servicing” of our
core catchment would result in a surface transport saving
of circa 260million km and a resultant saving in CO2 of
17,000 tonnes (at a passenger throughput of 27,189,000).
1.2.3 Air Quality
As part of the runway extension consent, the Airport
commissioned studies into the effect of growth at the
Airport on Nitrogen Dioxide (NO2), Fine particulates (PM10),
and Nitrogen Dioxide (NOx). This concluded that NO2
would grow by around 32–34% between 9mppa and
27mppa; however in all locations, both in and outside
of the Airport, concentrations are expected to remain
within the UK and EU air quality objective of 40ug/m3.
As per the noise predictions, this estimate is based
on a conservative estimate of aircraft types and does
not account for the potential reductions in aircraft NO2
emissions for new aircraft types. For fine particulates
(PM10), at all locations outside the Airport site, the UK set
air quality objectives for this pollutant are expected to be
achieved with 27mppa/205,400 ATMs.
In reaching their decision on the runway extension, Solihull
Metropolitan Borough Council, as the Local Planning
Authority, stated “the evidence provided confirms that
there will be no exceedences at the Airport and there will
be no effect on residential locations”.
1.2.4 Other local environmental affects
The construction of the runway extension and realignment
of the A45 has been carried out on previously Green Belt
agricultural land, and has necessitated the removal of trees
and hedgerows. As part of the planning permission, the
Airport has agreed a wide ranging “HEELMP” (Historic
Environment, Ecology and Landscape Management Plan).
This has the full support of a steering group consisting of
Solihull MBC, Natural England, and Warwickshire Wildlife
Trust. It provides for the planting of over 1,500 trees, over
5 km of hedgerows and the creation of over 40 hectares of
valuable ecologically rich grassland on airport owned land.2
Airports Commission 5
2. Response to questions on the socioeconomic effects of making best use of
existing capacity at Birmingham Airport
2.1 Overall benefits to the consumer and
to the UK economy, particularly in
terms of increased connectivity
In response to the following Airports Commission
questions:
1. Overall benefits to the consumer and to the
UK economy, particularly in terms of increased
connectivity
2. Alignment with local economic growth and
regional development strategies
3. Cost implications, including for air passengers
and freight users, the aviation industry and the
UK taxpayer
Birmingham Airport’s report, Don’t put all your eggs
in one basket – a challenge to aviation orthodoxy,
analysed the effect on consumers of having to solely
rely on a ‘single-hub’ model for UK aviation. Our research
showed that without other major airports across the UK
market, consumers were faced with rising costs, delays
and a deteriorating passenger experience.
New York – London – Dubai – Hong Kong will remain the
backbone of the international marketplace, but consumers
are pushing the industry towards long-haul point-to-point.
Research by Boeing showed that above-trend growth in
passenger, freight and air traffic movements is coming from
new city trading pairs, 400 of which were added in the last
year alone. Businesses and passengers in established cities
in Western Europe want direct flights to Manila, Sao Paulo,
Bali and China’s new mega-cities Shenzhen, Shantou
and Tianjin. Not via a hub, but from their nearest major
international gateway. Boeing specifically developed the
787 Dreamliner, “to carry 200–250 passengers on longrange routes capable of bypassing congested hubs”, while
Airbus and Bombardier are fast-tracking the production
of competing aircraft to service this emerging market.
Producers are responding to consumer demand, but
traditional airline policy is still hindering the extent to
which the UK’s major city-regions can access the direct
connectivity they need to align their economic activities
with customers, investors and their supply chain in longhaul growth economies.3
New research by Capital Economics, Birmingham
Airport’s role in a balanced British economy, shows that
Heathrow, Birmingham and Manchester Airports all have
the potential to serve large and distinct local catchments.
And that without a network of at least three great longhaul airports across England and Wales, we will be
left with a small number of overheated airports serving
unsustainable catchments, and it will be the passengers
that suffer.
Capital Economics’ research placed the consumer at the
centre of the aviation network and looked at catchment
areas based on ‘most convenient airport’ by rail and
road journey time. Its findings fundamentally challenge
the suggestion by UK airlines that the demand does not
exist for services to high-growth markets from the greater
Midlands economy.
6 Airports Commission
The research showed that:
• Currently, Birmingham Airport has a population of
35 million within its two hour catchment; is the most
convenient long-haul airport for 15½ million people,
across the Midlands, mid-Wales, the South West; and
can take the pressure off London airports.
• The section of the UK economy that Birmingham
Airport is best placed to serve for long-haul is
important to the growth and prosperity of UK plc:
i. It is the second largest market for both long-haul
leisure and business travel
ii. Over three million business trips were made from
the Birmingham catchment in 2011, nearly a
million of which were made to China/ India, North
America, Rest of Asia and the Middle East
iii. It is home to nearly eight million economically active
residents, over ½ million businesses and 6½ million
employees
iv. It was the destination for a quarter of all FDI that
comes into Britain in 2011, which predominantly
comes from long-haul destinations without a direct
air link. This demonstrates the future potential
attractiveness of the Midlands if those connections
were offered
v. It generates exports of £55 billion of goods each
year, but there are no direct air links connecting
Birmingham Airport with over £25 billion worth
of this trade with long-haul markets, which acts
as a break on growth.
• Birmingham Airport’s catchment economy is
specialised in high-value manufacturing sectors:
transport, automotive, aerospace, machinery, military
equipment. Productivity in the region’s rail and military
vehicles manufacturing industries is more than double
UK average.
• The catchment holds a competitive advantage for the
automotive industry. Its key export markets are longhaul and the highest growth markets are also long-haul,
but many other key sectors are also highly intensive
exporters. International trade pushes up demand for
air travel as the integration of global supply chains
increases the demand for business trips. Larger and
more distant networks of customers, suppliers and
intermediaries are driving demand for air links.
• Unlike Manchester Airport, Birmingham Airport is also
uniquely placed to help ease congestion at Heathrow.
At least 7½ million of Heathrow’s catchment can reach
Birmingham Airport within two hours.
• Heathrow currently has to deal with 3million longhaul trips from Birmingham Airport’s catchment
because of the lack of services at Birmingham.
• Improvements in rail infrastructure through HS2
will create bigger overlapping catchments, driving
competition and choice for passengers.
• Birmingham Airport’s two hour catchment will
increase to 45 million by 2032, and the most
convenient long-haul airport for 18.7 million people,
further extending its viability as a long-haul transport
hub for the greater Midlands economy.
The Capital Economics research reinforces the case
made by the Airport in its submission to the Commission’s
discussion paper on connectivity. The current alignment of
UK connectivity and productive sectors is not maximising
economic activity. To make the best use of airports with
spare capacity, and support the rebalancing of the UK
economy towards export-intensive activities, the UK
needs to tackle its acute regional ‘connectivity gap’. Our
great cities need great airports. Only by having their own
long-haul international gateways can each significant
(and often discrete), regional economy support business
activity and prosperity.4
The West Midlands Economic Forum (WMEF) report,
“Exports, Economics and Connectivity”, presents clear
evidence that Birmingham Airport’s catchment area has
the potential to become the UK’s major international
gateway for manufacturing exports. It also demonstrates
that unless the Government takes an active approach
to changing the perception that the only way to access
the UK is by Heathrow, Britain’s major exporting
companies will not be competitive and their growth will
be restricted. For instance, the lack of direct long-haul
connectivity from Birmingham means that many leading
Airports Commission 7
manufacturers remain excluded from the huge growth
in ‘post-production’ services, now worth over 40% of
the manufacturing sector, currently being exploited by
Japanese, German and USA manufacturers.5
The Airport’s submission to the discussion paper on
connectivity, research by Capital Economics, the WMEF
and case studies confirm that Birmingham Airport’s
catchment has the second highest demand for long-haul
services to key high-growth destinations in China/ India,
North America, the Middle East and the rest of Asia.
However, poor connectivity is limiting economic activity
and damaging the competitiveness of UK businesses.
2.2 Alignment with local economic growth
and regional development strategies
Expansion at Birmingham Airport will provide the range,
scale and choice of international connectivity to support,
enable and drive local economic growth and the region’s
emerging development strategies. Solihull and Birmingham
Councils, the West Midlands Local Enterprise Partnerships
(LEPs) and the network of West Midlands Chambers of
Commerce recognise this. The Airport acknowledges their
support in developing our submission to the Commission.
There are three significant regional development
strategies in the West Midlands at the moment:
1. The Greater Birmingham Solihull Local Enterprise
Partnership’s (GBSLEP) strategic framework,
Delivering Growth, which builds on the Heseltine
No Stone Unturned – in pursuit of Growth review and
subsequent report The Greater Birmingham Project:
The Path To Local Growth;
2. Black Country Local Enterprise Partnership’s
(BCLEP) Core Strategy; and
3. Solihull Metropolitan Borough Council’s M42
Economic Gateway project.
The Commission’s objective of making better use of
Birmingham Airport is fully aligned with all three.
The full details of Solihull’s M42 Economic Gateway
project are set to be released in June 2013. However,
the scheme’s potential was identified as one of Lord
Heseltine’s key priorities for The Greater Birmingham
Project: The Path to Local Growth, and aligning it with
expansion at the Airport was recognised as essential
to its success:
8 Airports Commission
“The M42 Economic Gateway in Solihull is a fantastic
opportunity, not just for Greater Birmingham and Solihull
but also for the UK. The GBSLEP will develop a strategic
framework and development plan, through a Development
Corporation-type approach or similar, which combines
targeted investment in local infrastructure ensuring that
the M42 Economic Gateway can fully capitalise from
the investment opportunities that the expansion of
Birmingham Airport and High Speed 2 will bring. The
Single Pot will enable the far more effective pooling of
local and central resources which can be used alongside
other funding mechanisms – such as GBS Finance – and
ensure that investment can be prioritised effectively and
co-ordinated locally.”6
The GBSLEP strategy demonstrates that the region’s
public and private leaders are ‘determined to exploit
the opportunity… to rebalance the UK economy’. They
recognise that empowering the City-region to become
more productive and more prosperous depends on a
successful Birmingham Airport, integrated with existing
and future transport infrastructure. And the LEP has
committed to working with the Airport to increase route
development East and West.
The Airport is a major employer and, when the runway
extension is complete, will act as the major gateway
for the Midlands economy into the global marketplace.
Birmingham Airport estimates that the economic benefits
of expansion at the Airport will have the following
employment and income impacts:
The WMEF estimates that the direct and indirect
economic benefits of expansion at Birmingham Airport
up to 36mppa would create the equivalent to 243,000
jobs in the wider economy.7 Both the Airport and WMEF’s
projections demonstrate the valuable contribution that
expansion at the Airport would make towards helping the
GBSLEP achieve its ambition of delivering 100,000 private
sector jobs by 2020.8
In addition to the direct employment, the connectivity
offered by Birmingham Airport aligns with the LEP’s
three strategic pillars: Business, People and Place, and
supports the LEP’s six ‘strategic enablers’, which have
been designed to deliver growth for the city-region.
2.3 Cost implications, including for air
passengers and freight users, the
aviation industry and the UK taxpayer
The increased traffic at Birmingham would allow the
Airport to fund terminal/ capacity expansions to 27mppa.
Planned or forecasted local major developments –
the M42 gateway project and HS2 will play a role
(see below) in the future development of surface
access improvements and the Airport will work with
the local and national transport authorities to ensure
that investments are planned accordingly. Birmingham
Airport would be happy to discuss the cost implications
of growing the Airport beyond 205,400 ATMs with the
Commission, upon request. Any changes to air passenger
or airline charges caused by expansion will be in line with
market forces to ensure that Birmingham Airport remains
competitive in the UK aviation market.
Table 5 – Economic benefits of expansion at Birmingham Airport*
Employment impacts (FTE jobs)
13,079,000mppa
20,939,000mppa
27,189,000mppa
Birmingham
2,090
2,750
3,010
Solihull
9,640
12,470
13,450
Former County West Mids
12,720
16,520
17,880
West Mids Region
13,430
17,630
19,090
Birmingham
191
307
394
Solihull
71
115
147
Former County West Mids
326
524
671
West Mids Region
400
642
824
Income impacts (£ millions)
*Figures correspond to the years and forecasts in the 2007 runway extension planning application. FTE jobs rounded to nearest 10, income
rounded to nearest £1m.
GBSLEP Strategic enabler
Expansion at Birmingham Airport will support this objective
i.
Growing the number of successful
businesses
78% of manufacturers based in the Midlands that responded to the EEF survey on
connectivity called for the expansion of regional airports and 70% of respondents
identified the air network as critical or important to their business.9
ii.
Building on our sector strengths and
opportunities
Birmingham Airport’s catchment area economy has the largest share of export-intensive
manufacturing activity of any airport catchment, which is dependent on connectivity for
trade and investment.
iii.
Stimulating innovation in products,
processes, services and business structure
Over the last few decades, post-production services have grown to account for c. 40%
of the total value of the manufacturing trade. With long-haul connectivity, the region’s
flagship companies – JLR, Rolls Royce – will be able to compete with rival economies
for this market by having engineers, technicians and sales representatives to a client
within one working day.
iv.
Improving our skills talent pool
Delivering connectivity for the UK’s manufacturing centre will drive job creation and
training opportunities, diversifying and expanding the talent pool.
v.
Improving physical and digital connectivity
The LEPs and the Airport have created a strategic transport alliance to increase route
development East and West, bringing the international marketplace to the door of
Midlands’ businesses and passengers.
vi.
Optimising physical, cultural and
environmental assets
Integrating the Airport with local light rail and national high-speed rail will maximise
the value of investments and encourage a modal shift onto rail, generating positive
environmental externalities.
Airports Commission 9
3. Response to questions on the surface
access requirements of making
best use of existing capacity at
Birmingham Airport
In response to the following Airports Commission
questions:
1. The potential need for new surface transport
infrastructure
2. Implications for existing surface transport network
Surface access is a critical consideration for passenger
choice. It helps the market perform more efficiently by
reducing journey times across the UK. This allows airports
to compete for the traffic from the same population
centres, enabling passengers to make a more informed
decision about where to fly from. High quality air-rail
connectivity greatly enhances passenger experience and
increases the attractiveness of international gateways
to tourists and potential investors. Encouraging a modal
shift away from car onto rail generates large positive
environmental externalities by limiting surface access
emissions and improving air quality.
Birmingham Airport’s current surface access infrastructure
has helped the Airport to overachieve its public transport
surface access targets. The Airport is located in the centre
of England, on Birmingham’s de facto ‘orbital motorway’,
with short links to the M1,M5, M6,M6 Toll, M40, M42 and
M54. Existing rail infrastructure is good, with a railway
station on-site providing direct access to the West Coast
Mainline. Future enhancements include a metro system,
High-speed Two (HS2), and potential for a reinstated line
to create further connectivity as well as a direct rail freight
link to the airport. While the Airport already operates as an
integrated transport hub, it has the potential to be the rail
and road transport hub for the centre of the UK.
The Airport is already implementing improvements to
surface transport infrastructure, including a contribution
to the diversion of the A45 Coventry-Birmingham dual
carriageway, and a support grant to improve bus access
between the Airport, North Solihull and East Birmingham.
We are continually improving our public transport modal
share figures of both passengers and staff travelling
to the Airport, and have agreed a challenging target of
10 Airports Commission
37% by 27.2mppa for passengers and staff. In 2012, we
surpassed our existing target of 25% sustainable mode
share with 32% (including 23% train) of passengers
accessing the Airport by sustainable means (bus, train,
coach) and 29% of staff (bus, train, cycle, car share).
The integrated transport provider for the Midlands, Centro,
is working with the Airport and partners across the region
to ensure the delivery of world class connectivity to
Birmingham Airport and HS2. One of their key priorities
is to ensure effective and reliable access to international
markets particularly from existing and emerging strategic
growth areas. One of the strategic growth points for
the GBSLEP area is the M42 Gateway, including Solihull
Town Centre. 3.1 Rail (Heavy and Light)
A large portion of the Midlands is accessible by rail within
one hour from Birmingham Airport, including Coventry,
Walsall, Wolverhampton, Northampton and Milton
Keynes. Overall, just over 2 million passengers accessed
Birmingham Airport by rail in 2012. A report by Steer
Davies Gleave (SDG) created a model that analysed
rail connectivity for c. 80% of the Airport’s potential
catchment. It revealed that 3.1m people live within one
hour of Birmingham Airport by rail. This gave the Airport a
maximum one hour rail journey catchment of 10.3mppa.
The construction of HS2 and the Interchange station will
be 1.5km from the existing airport terminal facility and
connected by a high-speed link. HS2 will bring a step
change to the numbers of people who can access the
Airport easily within an hour, both to the south and to the
north along the ‘Y’ route. The SDG analysis showed that
by 2030, with HS2,other highly probable rail/coach and
road improvements, the Airport could be a multi-modal
transport hub for the centre of the UK economy. These
improvements would bring at least an additional 5 million
people, or over 80 million air passenger journeys, within
an hour’s rail journey of Birmingham Airport. And in the
short and medium-term, additional airport facilities could
be built at the new HS2 station in anticipation of a longerterm scheme.
Alongside HS2 there are numerous improvements
to local rail connectivity which will improve rail
access to Birmingham Airport: the Birmingham
Gateway project, programmed improvements
to the Coventry- Nuneaton line, improvements
to services to Wolverhampton, Nottingham,
Derbyshire and Yorkshire, Project 110 London
Midland, enhancements to early morning/ late
night/ Sunday services to the Airport.
Further potential opportunities prior to delivery of HS2
include: the provision of a 59 minute journey time
service to London Euston from the Airport, and the
reopening of the ‘Whitacre Link’.10
The Whitacre Link would further increase the number of
people within the one hour journey time. For instance,
a non-stop service from Derby could take less than 30
minutes. The Link would open up significant areas of the
East Midlands and offer wide ranging connectivity benefits
to the West Midlands, allowing trains to bypass the
congested central Birmingham area and access Coventry
and Warwickshire more easily. The line could also have a
significant role to play in freight traffic, with a potential for
Birmingham to become the first UK airport with a direct
rail freight connection.11
The construction of the runway extension and diversion of
the A45 has provided a public transport corridor from the
Airport’s main terminal to the Elmdon site. The mediumterm aspirations of Centro are to extend the Midland
Metro to the Airport, allowing significant communities to
access the Airport and wider M42 Economic Gateway
more easily. The Economic Gateway study has also
indicated there is a need for fast/reliable connectivity
from Solihull Town Centre to the Airport (and to HS2) as a
crucial lever for growth and inward investment. The Airport
will keep the Commission abreast of any developments in
these initiatives, but we ask urgently for the Commission
to recommend changing the name of Birmingham
International rail station to Birmingham Airport rail station
to help passengers access the airport.
3.2 Road
The Airport is funding significant improvements to the
M42 Junction 6 (and ancillary A45 works) and helping to
provide a direct public transport link from Elmdon to the
main terminal area. This will provide mitigation for Airportinduced road traffic caused by the development of the
Runway Extension. To minimise potential disruptions,
these specific M42 works are being integrated with the
Highways Agency “Pinchpoint” scheme on Junction 6
and the Solihull MBC works to replace and improve the
existing A45 railway bridge.
More improvements will be required to the M42 and
Junction 6, as the HS2 Birmingham Interchange station
is constructed and the wider M42 corridor continues to
grow (including the NEC, JLR, Birmingham and Blythe
Valley Business Parks). We understand that this is being
considered in this wider context as part of the HS2
project and the M42 Economic Gateway study. The wider
M42 corridor will also require upgrading in due course,
although this is unlikely to take place prior to HS2 opening
in 2026.
The M6 and M6 Toll also form a key part of the local
strategic highway network. Along with the M42 and
the M5 they form the “Birmingham Box” – effectively
Birmingham’s orbital motorway. Extensive improvements
to the M6 are on-going and, in future, greater utilisation of
the M6 Toll is being sought.
3.3 Bus and other modes
The Airport has made substantial contributions to
improving bus access to support passengers, as well
as current and potential employees working at the Airport
and NEC.
The Airport will continue to work with our partners at
Centro, local authorities and transport operators, to
improve bus services. A fundamental part of the A45
diversion is the provision of a full width footpath and
cycleway to enable the airport to be accessed more easily
from the east. This will be fully open by July 2013. The
Airport continues to provide and improve facilities and
access for cycle users.
Airports Commission 11
4 Policy recommendations for making
the best use of existing capacity at
UK airports
On current evidence, new runway capacity is likely
to take at least 15 years to deliver. Even shorterterm options in the South East, such as mixed mode
operations off Heathrow’s existing runways, would be
highly controversial and time consuming. The only way
to cater for more services in the next ten years is to
make better use of the capacity of existing runways.
Yet Heathrow is full, and Gatwick is full at peak times,
meaning that Birmingham has a significant role to play in
relieving pressure on the South East and supporting the
UK economy over the next decade. Policy levers will help
make this happen.
4.1 Launch a ‘Great British Airports’
marketing campaign at the 2013
World Routes conference
The Government must do more to attract new routes to
emerging markets in the short-term. It is unreasonable
that UK airports have to fight for limited support in our
efforts to attract new air links while rival Governments
provide decisive leadership for their airport assets and
regional economies.
The Department for Transport (DfT) has made an effort
to start this process, publishing a document entitled
‘UK International Air Services’ in December 2012. The
document was in response to the (then draft) Aviation
Policy Framework [Section 2.43] and it contains
information about UK airports for foreign airlines and
governments.12 The contents are entirely functional and
lack any description or explanation of tourism/ trade
activities in the regions that the airports support. As a
result, it is not fit for purpose as a marketing brochure
designed to make the best use of existing capacity
and attract new air links.
Following discussions with officials at the DfT, UKTI
West Midlands, Visit Britain and the Foreign and
Commonwealth Office, it is clear that significant
potential exists for a purpose built Government-backed
marketing initiative.
12 Airports Commission
The Commission should work with HM Government and
the UK aviation industry to create a marketing initiative
that promotes new, long-haul routes to emerging
markets from airports outside the South East:
i. Create an integrated marketing brochure that
aligns tourism, trade and investment policies with
the Commission’s objective of making better use
of existing airport infrastructure. Each of the major
regional economies – Midlands, North West etc
– should have a branded document in which the
regional LEPs and local authorities can emphasise
their local initiatives and the virtues of their region.
ii. Have the brochure endorsed by senior Ministers at
DfT/ Visit Britain/ UKTI/ FCO/ BIS, led by UKTI inward
investment, and branded using Number 10’s ‘Great
Campaign’.
iii. Create a ‘fit for purpose’ unit across DfT/ Visit Britain/
UKTI/ FCO/ BIS, led by UKTI, with a clear mandate
to provide support for UK airports in advanced
negotiations with foreign airlines. This may take the
form of dinners, receptions, signed letters and direct
engagement. The unit should promote UK airports
and connectivity options internationally.
iv. Create a script for UK Government Ministers and
officials to promote the UK’s ‘Great Airports’ to foreign
governments and airlines during trade missions and
negotiations.
v. Launch the marketing campaign in October 2013
at the World Routes conference in Las Vegas.
This policy would complement various Government
initiatives, and help the Commission realise its shortterm objective of making best use of existing capacity.
Most importantly, it would send a strong statement
to the regions that the Government is taking positive
action to rebalance the UK economy. Birmingham
Airport is working with UKTI/ Visit Britain and the
DfT to progress this initiative and would welcome
the Commission’s tacit support in taking this forward.
4.2 Air service agreements – trial fifth
freedom rights for non-EU carriers
seeking to offer long-haul services
from airports outside the South East
Birmingham Airport welcomes the DfT’s decision
to extend regional liberalisation policy and ‘adopt a
unilateral regional open access policy on a case-by-case
basis.’13 And we recognise the importance of reviewing
whether potential new entrants benefit from state aid
and the implications this may have for maintaining a
level playing field for the UK’s flagship airlines. However,
the Commission should give meaningful consideration
to whether the beneficial effects of having any airline
establish a new flight from an airport outside the South
East outweigh the potentially negative impacts on
domestic carriers, if a new service affects them at all.
Birmingham Airport would like the Airports Commission
to recommend that the DfT should trial fifth freedom rights
for foreign airlines seeking to establish routes outside the
South East. If an airline could be attracted to establish
such a route, the impacts of the route would serve as a
meaningful case study as to whether the scheme should
be extended further. Greater engagement between
airports and the DfT will be essential for this process,
and help break the perception (as recently referenced in
the Transport Select Committee’s aviation strategy) that
Government Policy is disproportionately influenced by
Britain’s ‘legacy’ airlines.14
Birmingham Airport believes that allowing foreign airline
entrants to establish long-haul routes to high growth
markets from airports like Birmingham would:
i. Improve competition across the UK airport network,
lowering prices for consumers and allowing
passengers to fly from their most convenient major
international airport.
ii. Act as a catalyst for a virtuous cycle of growth that
will attract investment, stimulate trade and support
growth in the regional economy the flight serves
iii. Help take the pressure off capacity constrained
Heathrow and release capacity for airlines to offer new
services for the London/ UK market.
A trial and case study analysis would also enable the DfT
to examine and evaluate the suggestion that giving these
rights to a foreign carrier would create an uneven playing
field that negatively impact on the competitiveness of UK
airlines, or prevent the UK Government from securing
reciprocal liberalisation rights from the carrier’s host country.
4.3 Implement a differential tax regime
at airports with spare capacity
Outside the South East, the aviation market is less mature
and has a higher price elasticity of demand, particularly
for leisure traffic.15 Birmingham Airport was pleased
to see that the Transport Select Committee’s aviation
strategy recognised the need to use fiscal incentives to
promote route development at airports outside the south
east. “There are complex issues and vested interests to
be taken into account in any consideration of the merits
of differential rates of Air Passenger Duty (APD). We
recommend that the Government carry out an objective
analysis of the impacts such a policy might have… we see
merit in the concept of an APD holiday and recommend
that this be introduced for a 12-month trial period for new
services operating out of airports outside the south east.
After this time, the DfT should assess the extent to which
it has led to the development of new routes.”16
Birmingham Airport fully endorses this proposal and
would like the Commission to recommend this policy
to Government. But there may be more than one answer.
Restructuring APD is a big opportunity to encourage
regional growth without major loss of revenue for HM
Treasury. In addition to an APD holiday on new routes
from airports outside the South East, the government
should examine the feasibility of policies such as: an APD
exemption on long-haul from regional gateways, capping
regional long-haul APD at short-haul rates and case-bycase exemptions. Each of these suggestions will provide
a focussed incentive to travellers to fly from their most
convenient airport without undermining the tax base.
From discussions with airlines over new routes, the Airport
believes a new APD regime could have a meaningful
impact in convincing airlines to start services.
4.4 Implement a congestion charge at
over-capacity airports
Heathrow is operating at 99% capacity, and Gatwick
operates at 96% during peak times, because strong
incentives already exist to ensure that London airports
maximise the utilisation of existing infrastructure. The
current structure of demand management at these
airports encourages those airports to maximise throughput at the expense of punctuality and resilience. This
trade-off encourages individual airlines to benefit from a
marginal additional flight, because it generates revenue
from operating this service. This results in sub-optimal
Airports Commission 13
capacity usage leading to negative externalities and
disbenefits. Birmingham Airport believes airports
should make optimal use of airport capacity, perhaps
85–90% utilisation, and not maximise passenger
numbers or ATMs in favour of generating environmental
externalities, airspace constraints, a lack of resilience and
congested surface access for transport infrastructure.
Delivering an airport which is at optimal capacity could
be achieved via congestion charges, which discourage
airlines and airports from rent-seeking. The value of this
charge should reflect the marginal cost of the negative
externalities generated by squeezing more capacity into
already crowded airports. This approach is used in the
energy industry for peak hour pricing issues. A variable
congestion charge could even help mitigate the tendency
towards concentration by incentivising new routes to fresh
destinations.
A capability study should be undertaken to identify the
optimum throughput of any given airport, with regard
to resilience, passenger experience, and environmental
impact.
4.5 Promote consumer choice through
surface access improvements
CAA research suggests that airport location and surface
access are primary influencers on a consumer’s decision
about which airport to travel to/from.17 New research
by Steer Davies Gleave shows that Birmingham Airport
captures over 35 million people within two hours,
including people from West London, the Thames Valley
and westwards towards Bath and Bristol. By 2032,
Birmingham Airport will be the most convenient airport
for 19million people, more than any other long-haul
airport. Taking into account Britain’s growing population,
Birmingham’s one-hour catchment will grow to 15million
and the two hour catchment will increase by more than
25 per cent to 45 million. Birmingham Airport will be within
one hour rail journey of over 45 million passengers flying
out of London airports. Rail improvements, particularly
high-speed rail, could structurally alter the operating
dynamics of the UK aviation network.18
The potential for passenger choice and competition
between airports will be dramatically increased by
improvements in our rail infrastructure, particularly the
high-speed rail network, the consequential release
of capacity on the WCML and various improvements
14 Airports Commission
contained in Network Rail Control Period 5 (CP5). The
benefits of choice and competition will be expressed
through reduced prices and better services.
To ensure that passengers benefit from surface access
improvements, the Commission should recommend that
the Government:
i. Use the refranchising of the main line railways to
create a ‘new air-rail deal’ for UK passengers.
Establish a dedicated air-rail unit in the DfT that
focuses on ensuring that Train Operating Companies
and Network Rail provide services that support the
UK’s airports by initiatives such as: through-ticketing,
code-sharing, consumer marketing, appropriate
station names,19 improved early morning/ late night/
weekend services, new direct or through services.
ii. Launches a consumer marketing campaign to
promote air-rail connectivity to UK consumers and
encourage the use of the nearest/ most convenient
airport, rather than driving to use far away airports
and adding to pollution and congestion.
iii. Maintains its support for HS2 and works with
Network Rail to explore the options for rail service
improvements created by taking capacity off the
West Coast Mainline.
iv. Promotes investment in light rail/ coach schemes by
local transport authorities to increase the share of
workers and local passengers who access airport by
public transport.
v. Works with Birmingham Airport to explore the
potential benefits for freight, air and rail passengers
of reopening the ‘Whitacre Link’.
Appendix 1 – Air noise contour map for Birmingham Airport at 13,079,000 pax
Airports Commission 15
Appendix 2 – Air noise contour map for Birmingham Airport at 20,939,000 pax
16 Airports Commission
Appendix 3 – Air noise contour map for Birmingham Airport at 27,189,000 pax
Airports Commission 17
Endnotes
1.
The DfT’s Aviation Policy Framework, paragraph 3.17, states
that ‘we will continue to treat 57dB LAeq 16 hour contour as the
average level of daytime aircraft noise marking the approximate
onset of significant community annoyance.
2.
Birmingham Airport’s 2007 runway extension planning permission.
3.
Paul Kehoe, Don’t put all your eggs in one basket, Birmingham
Airport, 2012.
4.
Capital Economics, Birmingham Airport’s role in a balanced
British economy, 2013.
5.
West Midlands Economic Forum, Exports, Economics and
Connectivity, 2013 – report available upon request.
6.
Lord Heseltine, The Greater Birmingham Project, 2013.
7.
West Midlands Economic Forum, Stimulating Revival – the role
of Birmingham Airport in rebalancing economic growth, 2012.
8.
GBSLEP, Delivering Growth, 2013.
9.
EEF, “Transport for Growth – Getting the economy moving”, 2013.
10. Steer Davies Gleave, Helping Birmingham Airport become more
accessible by rail from across Britain, 2013.
11. Alan Marshall, The Whitacre Link: Improving central England’s
connectivity, 2013.
12. Department for Transport, Draft Aviation Policy Framework, 2012.
13. Department for Transport, Aviation Policy Framework, 2013.
14. Transport Select Committee, Aviation strategy, 2013.
15. House of Commons Library, Air Passenger Duty: recent debates
& reform, March 2013.
16. Op. Cit. Transport Select Committee.
17. Civil Aviation Authority, Insight note – aviation policy for the
consumer, 2011.
18. Op. Cit Capital Economics.
19. Birmingham Airport has been campaigning to have Birmingham
International rail station’s name changed to Birmingham Airport
station to improve consumer choice and information.
18 Airports Commission
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