Editor in chief Malcolm Ginsberg considers the position
Ruth Kelly, the new Secretary of State for Transport, has made a good start in this most visible of positions. The eighth department head since the Labour Party took power more than ten years ago, she succeeded a competent minister in Douglas Alexander, straight away accepting a commitment by her predecessor to attend an Aviation Club lunch only several days into her new job.
The fact that her speech really said nothing and she refused to take questions is irrelevant. She was there.
Last Thursday she met the heads of the British airlines and airports. Another positive move.
Or was it?
The meeting was clearly planned to serve two purposes. Firstly for the minister to get to know the UK”s senior air transport people and secondly for the industry to highlight some of its problems, especially those politically instigated.
The airlines are very unhappy regarding the horrendous airport tax (APD) increase introduced by the Prime Minister when he was Chancellor of the Exchequer. This is presently being challenged in the High Court by the Federation of Tour Operators.
And number two in major grumbles is Britain”s position as virtually the only country in the world that allows but a single piece of hand luggage through the airport security systems. Even flying out of tiny Gibraltar, run British-style, two items are permitted.
The combination of the two will have a major impact on Britain”s airlines and the British economy.
A judgment regarding APD is expected by the end of July.
The airlines might have to live with the tax however it affects their businesses. At least passengers transiting the UK - 25% of Heathrow”s throughput is connecting traffic - don”t have to pay.
HM Revenue and Customs has made a concession in that if scheduled departure time is less than 24 hours after scheduled arrival, the tax does not have to be paid; regardless of whether passport control is passed or not.
Ruth Kelly is quoted as telling the airline people that the government will not budge on the one bag rule. She even claimed that the ball was in the industry”s court.
Just who is she being advised by? Her civil servants or the airports? Either security works or it does not.
Whether carrying cabin item or four, the measures in place should spot a possible dangerous item. The one bag rule only benefits the airports and their investment in security.
On a pure, financial basis, passengers are now often forced to make purchases in the airside shops (note we did not use the term ” duty free) for items that not abe to fit in a single bag. Less bags means less security personnel, not less security.
One of the reasons for the current Heathrow baggage problems is overseas passengers with two bags connecting on to another flight. They are often simply amazed that whilst the two items are allowed at New York the rule is only one at Heathrow.
Bag number two is either dumped, consolidated or put in the hold. Will they be inclined to bypass Heathrow next time?
Governments are notorious for not admitting mistakes. The APD increase might be outlawed by the courts.
ICAO (International Civil Aviation Organisation ” a UN constituent) will host a conference on aviation security prior to its general assembly in late September. The British airlines need to use that opportunity to ensure that the message is put across to the UK government that it is totally out of step with the world airport community. Maybe ICAO will issue a recommendation.
If the industry does not succeed in reversing the current government policies, the outlook is dire for both the airlines and the airports. The ramifications for UK Plc are horrendous.
Heathrow”s position as the hub of the international airline industry will be further eroded and in fatal decline. One could argue that it is beginning to look like a sinking ship with news that Tony Douglas, managing director and the man mainly responsible for T5, has resigned.
Its take-over by Ferrovial, a Spanish consortium, last year saw the quick exit of experienced managing director Mike Clasper. Now Ferrovial has threatened not to develop Heathrow East.
All is not lost. If British Airways can get its marketing act together with the launch of T5, Ferrovial take on its responsibilities as Britain”s leading airport operator, and the government recognises the looming crisis, all these problems can be left behind and everyone can focus on the way ahead.