MPs fear air link will be grounded

Jan 3 2008 by William Green, The Journal

A KEY air link between the region and London could be lost and damage the economy unless Ministers act, MPs have warned.

Fourteen MPs have signed a Commons motion expressing concern that a significant increase in Heathrow landing charges from April could make it difficult for airline BMI to operate the only London service from Durham Tees Valley Airport.

The loss of the service would have a “detrimental” economic effect with business people using it to transfer to Heathrow on to international flights, according to the motion tabled by Sedgefield MP Phil Wilson.

Mr Wilson laid the motion over concerns about proposals from the Civil Aviation Authority (CAA), which handles price controls at key airports Heathrow, Gatwick, Manchester and Stansted.

The CAA has proposed an £11.97 charge per passenger landing at Heathrow in 2008-09, representing a 15.6% rise on the current price cap, with charges rising by a maximum of inflation plus 7.5% over the following four years.

The proposals follow recommendations of the Competition Commission, agreements between airports and airlines and will improve services, according to the CAA. Further consultation is now under way before a final decision in March.

But the Commons motion urges the Department for Transport (DfT) to consider placing a public service obligation on the route, in which a grant can be made to secure vital links between London and regional airports. Durham North-West MP Hilary Armstrong, who signed the motion, said regional airports were very important to attract industry and executives from international companies to the region.

“We have to be able to assure them that there are the sort of facilities you would expect to get and a thriving airport with routes to London as well as elsewhere is part of what they now expect,” said the Labour MP.

Ross Smith, from the North-East Chamber of Commerce, said international trade links were vital and were a big factor in the region’s economic success. He said: “One of our international trade links is via Heathrow, which is the biggest international airport in the UK, so we need to make sure the North-East is well connected to it. We have raised our concerns about the impact these raised charges could have and will continue to express the business community’s views that these links have to be maintained.”

Airline BMI claimed the higher charges put under “further scrutiny” the existence of vital regional links to Heathrow by potentially pricing them of the market but promised to keep lobbying on the issue.

Durham Tees Valley Airport welcomed the lobbying efforts and said the region would continue to campaign on the issues.

The DfT said it recognised the importance of good air links to London for regional economies, which was why it supported a third Heathrow runway subject to environmental conditions being met.

The Transport Secretary would consider on its merits any application from North-East bodies to impose a public service obligation, added a spokesman.

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