Statement on UK Airport Expansion

Geneva – The International Air Transport Association (IATA) issued a statement following a speech from UK Chancellor of the Exchequer, Rachel Reeves, indicating government support for expanding UK airport capacity.

“The UK’s global position economically and socially will benefit if additional airport capacity is provided in the Southeast.

The opportunities for relatively swift increases at Gatwick and Luton should be seized. But Heathrow’s decline in status is not about capacity: it’s about cost. Its charges remain among the highest in the world. To bolster UK competitiveness, it is vital that charges are reduced and not increased further. This means ensuring that today’s airline users are not saddled with costs that should be borne by the airport’s shareholders and the eventual users of new capacity. Heathrow cannot be allowed to gold-plate its construction costs, as it has done in the past. Regulators will need to be extremely firm on cost and efficiency matters, especially as environmental and economic barriers to expansion are also formidable. Unfortunately, past performance gives airlines little confidence in this area.

Frankly, while this statement of intent is welcome, airlines would prefer to see more immediate measures to improve the UK’s aviation competitiveness, starting with cutting the APD tax and the ETA visa waiver charge, and stronger incentives for cheaper sustainable aviation fuels,” said Willie Walsh, IATA’s Director General.

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