IMPORTANCE OF HEATHROW
64. Whilst the London area is well served through
four airports, Gatwick, Heathrow, Luton and Stansted, many witnesses
told us of the importance of the service to Heathrow.[133]
In 2004 Heathrow accounted for some 36% of passenger journeys
between Belfast and London; Gatwick 25%; Luton 19% and Stansted
18%.%. In terms of airlines' shares, in 2004 bmi accounted for
36% of the Belfast to London market; easyJet 52% and flyBEflyBE
10%.[134] Billy Armstrong
MLA noted that "It is vital that Northern Ireland's future
access to Heathrow Airport is protected and that no further erosion
takes place… it provides a gateway to the world unrivalled
by any other UK airport and must be maintained and secured for
the long term".[135]
The General Consumer Council stated that "Northern Ireland's
access to Heathrow should be protected in the interests of consumers
and business and steps need to be taken to secure the existing
16 slots".[136]
65. Several witnesses suggested that, whilst there
was not necessarily any immediate threat to the service operated
by bmi between Belfast City Airport and Heathrow, this could change.
The scarcity of slots increased their value, and almost by definition
would make services to regional airports financially less attractive
for airlines. The prospect of further international liberalisation,
including transatlantic 'Open Skies', will increase the demand
for and value of slots for profitable long-haul services, either
from existing Heathrow operators or other new entrants. The fundamental
uncertainty of the position was summed up well by bmi: "bmi
has no current plans to alter its pattern of service at Belfast
City though, of course, the company will respond to commercial
and other pressures as and when these arise".[137]
66. The importance of Heathrow for passengers from
Belfast who wish to make onward connections was confirmed by data
provided by the CAA. In 2003 (the last year for which information
is available) the CAA estimated that some 327,000 Belfast passengers
transferred there, or some 42% of all passengers on the Belfast-Heathrow
route.[138] The CAA
data also revealed the extent of self-interlining[139]
at other UK airports, and in particular highlighted the example
of an estimated 14,600 Belfast passengers in 2003 connecting via
Liverpool to go to and from Malaga.[140]
With the direct service now operating from Belfast to Malaga this
figure is likely to fall. We
recognise the importance of passenger survey data and would encourage
the CAA to include Northern Ireland airports in a further survey
at the earliest possible opportunity.
67. A range of mechanisms were suggested to protect
slots at Heathrow in the event that the Belfast - Heathrow service
is placed under threat. These included the imposition of a Public
Service Order (PSO), a mechanism which would allow the Government
to provide financial support to a route that was considered to
be of fundamental importance for a region.[141]
However, current PSO regulations only permit the maintenance of
a service between two cities and not between specific airports;
in the case of London almost two thirds of the Belfast passengers
use airports other than Heathrow. An alternative mechanism is
the acquisition of slots by the Government or other organisation
but this would require the establishment of a suitable mechanism
for secondary trading of slots approved by the EC.[142]
However, based on recent transactions, it appears that the cost
of a pair of slots at peak times could be more than £6 million.
We do not consider that this represents a good use of public money,
a view echoed by the CAA.[143]
68. We recognise
the crucial importance for Northern Ireland of maintaining access
to Heathrow and the difficulties in developing a mechanism to
protect this service. We welcome the continuing overall commitment
to Northern Ireland by bmi, and the reassurance that there is
no immediate threat to its service to Heathrow. However, we urge
the Minister for Regional Development, in conjunction with the
Department for Transport, to explore and develop contingency plans
to protect the service.
DUBLIN AIRPORT
69. Dublin Airport represents both the main competitor
for Northern Ireland airports as well as providing the opportunity
for a wider range of air services for Northern Ireland consumers.
bmi, for example, emphasised that "its London-Belfast is
in competition with services from London to Dublin".[144]
We are conscious that even with an increased number of destinations
served direct from Belfast, more competitive prices and frequency
of service may still be available through Dublin to these destinations.
The CAA told us that "flying from Dublin was likely to be
a feasible alternative to connecting at Heathrow. This would depend
on the destination and the usual considerations of price and schedule".[145]
OTHER EUROPEAN HUBS
70. The DETI suggested that the easyJet service to
Paris "raised Belfast International Airport's connectivity
score from 50.49 to 80.80 an increase of 59%".[146]
Whilst this may be mathematically correct using the established
formula, we are conscious that easyJet does not facilitate direct
connections, and the number of passengers using the Belfast to
Paris service for onward connection may well be significantly
lower than if the service was provided by a full service operator.
71. We consider
that the extent of potential connecting benefits at other European
hubs may be illusory if the onward service from that hub is not
flown by the main carrier or one of its alliance partners. This
point is made by the CAA in its Regional Air Services Study.[147]
Heathrow will continue to be the main airport enabling Northern
Ireland passengers to make onward global connections, although
increasing congestion in the near term may make alternative options,
where they exist, more attractive.
131 Belfast-Cork route fails to get off the ground,
Belfast Telegraph Friday 25th February 2005 Back
132
Qq 386, 393 Back
133
Ev 37 Back
134
Analysis of CAA data: www.caa.co.uk Back
135
Ev 153 Back
136
Ev 138 Back
137
Ev 168 Back
138
Ev 19 Table 3 Back
139
Self interlining refers to onward connections using low cost airlines
where the passenger takes the risk on the connection Back
140
Ev 19 Table 4 Back
141
See footnote 53 Back
142
Ev 115 Back
143
UK Regional Air Services, A study by the Civil Aviation Authority,
CAP 754, 24 February 2005, para 8.3 Back
144
Ev 170 Back
145
Ev 5 Back
146
Ev 89 Back
147
UK Regional Air Services, A study by the Civil Aviation Authority,
CAP 754, 24 February 2005, para 5.15 Back
