Examination of Witness (Questions 380
- 399)
WEDNESDAY 14 JUNE 2000
MR RICHARD
EVERITT
380. What about the question of the investment
of Terminal 5, where are we as far as that investment is concerned,
and does that not further complicate the problem as far as slots
themselves are concerned?
(Mr Everitt) Certainly it complicates the problems
as far as slots are concerned, because slots are not just getting
on the runway, they are about parking aircraft and they are also
about processing passengers through terminals, and the basis for
T5 is that we require more parking space and we require more terminal
processing space. We are anticipating that the average size of
aircraft, and therefore the average number of passengers per aircraft,
using the existing runways, will increase progressively over the
next 15 years and enable us to use all that capacity.
381. What you are saying is that, your biggest
user, British Airways, in terms of what the policy was of that
airline to reduce the size of the numbers travelling per aircraft,
and that therefore is counter to what you are saying, is not something
that will be sustained over the next 15 years?
(Mr Everitt) We do not think it will be, no. All our
experience demonstrates that the airlines take advantage of whatever
slots they have available and maximise the return from them. And,
certainly, in the short term, British Airways will appear to be
holding at least their average passengers per movement. But we
are very confident that, overall, and over the 15-year time frame,
the average passengers per movement will continue to grow, at
broadly 2 per cent per annum.
382. And, finally, might I ask, in terms of
the announcement that was made in connection with your purchase
of JFK in New York and another airport, what would be the effect,
if any, on the whole question of bilateral, as far as that particular
purchase is concerned, and what is the potential for further purchases
within the United States themselves?
(Mr Everitt) I think I must make it very clear that
it was not an announcement that we were going to purchase, it
was an announcement that we were going to be appointed as adviser
to the Mayor on the future of JFK and La Guardia.
Chairman
383. Just as an adviser; in what sense, Mr Everitt?
(Mr Everitt) The leases of those two airports, which
are currently to the Port of New York and New Jersey, expire in
2015, and the Mayor, as I understand it, has sought an adviser,
or he has put that to open competition, and we have won that competition.
384. And, the management of the airports, you
are saying not on control of the airports but on the management
of the existing airport system?
(Mr Everitt) In the short term, it will be advising
him on the best way forward.
385. So that would encompass looking at new
ways of running the airports?
(Mr Everitt) Indeed.
386. Of looking for alternatives to the Port
of New York Authority.
(Mr Everitt) As operators.
387. A number of different aspects of management,
is that what you are saying?
(Mr Everitt) Whether it leads to full management of
those airports, in time, I think, is a very open question.
388. By you, as opposed to anyone else?
(Mr Everitt) By us, as opposed to anyone else.
Mr Donohoe
389. What is the answer to that very different
question?
(Mr Everitt) Whether it leads to us managing those
airports over time, I think, is a very open question at this stage;
it is but one of the possibilities, and there is a very long time
to go, and an awful lot to do.
390. So what sort of timescale are we talking
of then?
(Mr Everitt) The Port of New York and New Jersey have
a lease of those two airports until 2015, as I understand it,
and, until then, the Mayor only has influence, not control.
Chairman
391. Oh, I see; so his situation would change
in 2015 simply because the original leases were written in such
a way the elected member had no say?
(Mr Everitt) As I understand it, and I do not understand
the minutiae of it, the two airports are leased to the Port of
New York and New Jersey until 2015; they have the responsibility
for running those airports, along with Newark, until that date.
On that date, the real estate reverts back to the City of New
York, and, presumably, the Mayor and, I think, the two States,
the State of New York as well as the State of New Jersey, have
a say on what happens to them from there on in.
392. And is there also an element of discussion
about the air traffic control?
(Mr Everitt) We are not involved in that discussion.
Mr Olner
393. Just as a supplement to that, Madam Chairman,
and indeed building on your last question, does that mean when
you run you also have control of the parking slots?
(Mr Everitt) No.
394. Who has control of the parking slots then?
(Mr Everitt) Are you talking about take-off and landing
slots?
395. I am talking about wherever, whether they
be at Heathrow, Gatwick, or whether they be at these places that
you are seeking to manage; if you are seeking to manage, you must
be managing the parking slots as well?
(Mr Everitt) I am afraid, it does not follow, in airport
management, that you actually manage the slots, as such.
396. Do you influence them?
(Mr Everitt) Our role in slot allocation is to declare
the available capacity, in other words, how many slots are available.
Chairman: I do not want to get too deeply into
that.
Miss McIntosh
397. Mr Everitt, you touched on, in the introductory
remarks, and it is certainly in paragraph 12 of your memorandum
of evidence, that you would like the Government to develop regional
services from airports like Stansted; the difficulty is, there
does not seem to be much demand, in spite of my valiant efforts,
to do that. So how do you think the Government, in the context
of the present negotiations, could create such a demand?
(Mr Everitt) I think the most obvious way is to offer
additional opportunity, if I can put it that way. At the moment,
point-to-point traffic, effectively, is liberalised to the regions.
Our thinking is, and I think it is very much the case with the
other regional airports, if Fifth Freedom Rights were available,
it might—it might—entice an airline to start service
from Stansted, which we are very keen to see, and we have worked
very hard on this issue, and, indeed, one can see some natural
markets around Stansted for US services. But, so far, we are not
there, despite ten million passengers using the airport last year.
Chairman
398. Ten million and rising, I think, is it
not?
(Mr Everitt) And rising quite rapidly. Our thinking
was that, if you offered something extra, if I can put it that
way, you might encourage an airline or two to start from Stansted.
Miss McIntosh
399. Thank you. There was one that was there
for a year but then did not stay. Can I just ask you, do you accept
that there are now more points of entry within the European Union
by US carriers than European carriers into the US? I think that
is generally accepted. And, if you accept that, do you agree that
the European Union should be seen as the UK's domestic market;
and, if it were, would you see some advantage, or disadvantage,
to the Commission of actually taking over negotiations, in the
future bilateral talks?
(Mr Everitt) All I can say is, I think, with our own
two airports, we are certainly serving the best part of 25 destinations,
I think, in the US, we have a very comprehensive network, 20 out
of Gatwick, ten out of Heathrow, interestingly. So far as the
EU is concerned, I do not think I really want to get into whether
I think they would be better or not.
Chairman: What a born politician.
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