Politicians anticipating a long-awaited decision on an expansion of either Heathrow or Gatwick airports have turned up the heat on the U.K.\u2019s new Prime Minister, Theresa May. A report by a cross-party Commons body claims that vacillation over a new runway is costing the UK up to US$7.9 million a day.
\nThe pressure has been ratcheted up thanks to a report released over the weekend by the British Infrastructure Group (BIG) subtitled, \u201ca final call for U.K. airport expansion to protect Britain\u2019s businesses, economy and\u00a0jobs.\u201d The organization is led by Conservative MP Grant Shapps, who urged the new Prime Minister to demonstrate her “mettle” by making a decision.
\nBIG makes seven specific recommendations, although they do not state where a new runway should be built. Instead, the group argues that postponing the decision is harming Britain’s businesses, its economy and job creation.
\nThe group urges May to, \u201cmake an urgent and immediate decision on hub airport expansion. The problem of capacity at the current hub, Heathrow, is causing substantial damage to the industry as a whole. It erodes confidence in the government\u2019s stated ambition of growing the economy and our international trade. The evidence has been gathered by the Airport Commission. Now a decision is needed, to show the new leadership\u2019s mettle.\u201d
\nThe report also calls for substantial change across the country, such as an expansion of regional airports and lowering the Airport\u00a0Passenger\u00a0Duty\u00a0(APD).\u00a0This\u00a0aviation\u00a0tax,\u00a0the group points out, \u201cis\u00a0many times\u00a0the\u00a0rate\u00a0of\u00a0similar\u00a0taxes\u00a0in\u00a0European\u00a0competitors\u00a0and\u00a0trading\u00a0partners,\u00a0such\u00a0as\u00a0the\u00a0USA.\u00a0 In fact, the tax rate\u00a0is\u00a0higher than\u00a0in\u00a0any\u00a0other\u00a0country\u00a0except\u00a0Chad.\u201d
\nOther recommendations include a new approach to regulation and improved funding for startups. The report finds that regulations in the U.K. overwhelmingly favor large airports, with smaller airports unable to \u201cenjoy the same economies of scale.\u201d
\nSource: aircargoworld<\/p>\n","protected":false},"excerpt":{"rendered":"