APPENDIX 1
Memorandum submitted by the Ulster Unionists
The Ulster Unionist Party welcomes this opportunity
to contribute to the Northern Ireland Affairs Sub Committee Inquiry
into Air Transport.
Ulster Unionists believe that a sustainable
air strategy for Northern Ireland is necessary to maximise economic
benefits and address our peripheral location.
THE DEVELOPMENT
OF CAPACITY
AT EXISTING
AIRPORTS
Northern Ireland has benefited from the increase
in domestic services in recent years and the development of services
to locations within mainland Europe. We have been seeking more
international airlines flying in and out of Belfast airports for
many years now and our Party welcomed the recent news that Continental
Airlines has agreed in principle to operate a new Belfast to New
York route. We are conscious of the estimate that between 5% and
15% of air passengers originating in Northern Ireland choose to
travel from airports in the Republic of Ireland and believe that
this is a market that could be captured by enhancing services
from Northern Ireland's airports.
Belfast International Airport and Belfast City
Airport have in recent years become complementary with regards
to the various air routes. As discussed below we believe there
are compelling economic reasons to develop Belfast International
Airport as Northern Ireland's key competitor with Dublin Airport
in terms of international flights. However we believe that the
existing competition between Belfast International and Belfast
City, in terms of access to other regional airports, is good for
the consumer.
We would be concerned about any plans to increase
the number of permitted flights to and from Belfast City Airport,
due to the airport's proximity to residential areas. The frequency
of flights arriving at Belfast City Airport between 21.30 and
23.59 is a serious cause for concern and must be addressed as
a matter of urgency.
We consider the viability of the City of Derry
Airport to be questionable. The limited number of passengers and
its almost complete reliance on business from Ryan Air gives cause
for serious concern. This Airport is a huge burden on Londonderry's
ratepayers and its future viability could not be guaranteed on
this basis. There remains considerable doubt as to whether a region
with a population of 1.7 million can sustain 3 airports?
SPECIFIC CHALLENGES
FACING NORTHERN
IRELAND AS
A PERIPHERAL
REGION OF
THE UK
Strong, competitive and viable air connectivity
is vital for Northern Ireland business, education and tourism.
Ulster Unionists strongly support the campaign to ensure that
the Belfast—Heathrow slots are maintained because of the
unrivalled position of Heathrow as an international hub. Whilst
flights to other London airports are useful for those visiting
London, those wanting to travel further must usually make onward
connections from Heathrow. This is particularly important for
long-haul travel.
Ulster Unionists believe that an additional
shorter runway at Heathrow would be suitable for flights to and
from Belfast. We believe that a proportion of the new capacity
created by an additional shorter runway should be reserved for
use by regional services.
In the meantime, Northern Ireland needs guaranteed
access to Heathrow and we recommend that this be achieved either
through an amended Public Service Obligation or through the reservation
of slots for regional services.
EFFECTIVENESS OF
THE ROUTE
DEVELOPMENT FUND
Ulster Unionists welcome the new air routes
established with the assistance of the Air Route Development Fund
and support the Fund's intention of providing start-up funding
for new routes. This relatively new initiative will require ongoing
value-for-money assessment.
THE POTENTIAL
IMPACT FOR
NORTHERN IRELAND
OF WIDER
AIR TRANSPORT
ISSUES ON
THE ISLAND
OF IRELAND
As noted above we believe that there is the
potential for the number of passengers in Northern Ireland airports
to increase by between 5% and 15%. Dublin Airport presently has
a number of competitive advantages. It offers an extensive range
of direct air services to European and North American destinations;
travel time from Belfast has been considerably reduced; access
by coach service has been greatly improved and business benefits
from the Republic's low Corporation Tax rate and reduced VAT rate
on tourist services.
Consideration must be given as to how best to
compete with Dublin Airport. It may be necessary in order to achieve
critical mass and given the small geographical catchment area
in Northern Ireland to focus air transport activity in Belfast
International Airport, a model recently adopted by Germany in
the development of Berlin's main airport.
September 2004
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