APPENDIX 12
Memorandum submitted by BAA plc
1. BAA is the owner and operator of seven
airports in the UK including the world's busiest international
airport at Heathrow, as well as major international airports at
Gatwick and Stansted. We also own and operate Aberdeen, Edinburgh,
Glasgow and Southampton airports. Overseas we either manage contracts
at, or have interests in, airports in the USA, Australia and Italy.
2. BAA was a Major Partner with London 2012
to support London's bid to win the Olympic and Paralympic Games
in 2012 and provided a range of support during the bid period.
This support included detailed input into London 2012's preparation
of the technical bid document as well as advice on planning and
logistics, over £1 million of in-kind support to the bid
team, a formal presentation to the International Olympic Committee
(IOC) Evaluation Committee on air transport provision was delivered
by Mick Temple, MD BAA Heathrow, in Spring 2005. BAA is confident
that we can efficiently and effectively accommodate the Olympic
family and spectators during the Games at our airports.
3. BAA's submission will focus on our three
London airports, which will be key in terms of international transport
for the Games. In our response we will also address surface transport
links to and from the airports and issues around customer service
and security. We believe these are the areas where BAA's expertise
and efforts can add most value to the inquiry. In addition to
our written evidence BAA is willing to give oral evidence to assist
with the Committee's inquiry.
BUILDING A
WORLD-CLASS
INFRASTRUCTURE FOR
LONDON
4. BAA is investing £6.8 billion (at
2005-06 prices) of capital expenditure over a ten-year period
up to 2014 at our three London airports. Around £5.6 billion
will be at Heathrow, including spending on Terminal 5. The new
terminal is ahead of its construction schedule and will open on
30 March 2008 (first phase). In total, BAA will have invested
£4.2 billion on Terminal 5. By 2012 the terminal will be
able to handle an extra 30 million passengers a year. Heathrow
will also have the facilities to accommodate the Airbus A380,
which will carry up to 650 passengers. BAA is also investing in
redeveloping and improving Terminals 1-4. Terminal 1 will be redeveloped
so that it can accommodate a forecast growth of the larger aircraft
associated with the STAR alliance. At Terminal 3 we will provide
A380 pier-served stands, and develop the check-in and forecourt
areas. Terminal 4 will be redeveloped once Terminal 5 has opened,
to facilitate the location of Skyteam airlines and the increased
number of A380 operations.
5. At Gatwick, the busiest single-runway
airport in the world, BAA is investing around £685 million
on infrastructure to raise current traffic levels of 30 million
passengers to around 40 million by 2014. In 2005 BAA invested
£100 million on the Pier 6 project, which contains the world's
largest air passenger bridge, wide enough to allow a 747-400 jet
to pass underneath. Pier 6 provides 11 extra pier-served stands
and gaterooms for North Terminal passengers and will be used by
more than 3 million passengers a year. The investment programme
over the next ten years will also allow A380 operations at the
airport.
6. At Stansted, Europe's fastest growing
major airport, BAA is also investing £550 million to cater
for the rapid growth of low-cost carriers. An application will
be submitted in spring 2006 to seek permission to expand from
the current limit of 25 million to around 35 million passengers
a year. These proposed expansion plans include the provision of
surface transport facilities, extra hotel accommodation and additional
car parking needed to facilitate the airport's growth. In line
with the Future of Air Transport White Paper, BAA Stansted is
also working towards an application to build a second runway by
2013. This will involve a further investment of around £2
billion. It is important to note that the new runway will not
be in place for the Games, but neither will its construction diminish
Stansted's operations or constrain the airport from coping with
forecast passenger demand during that period.
7. As part of the Future of Air Transport
White Paper, the Department for Transport (DfT) asked each airport
operator to draw up and publish draft master plans. These master
plans both describe the current airport layouts, facilities, employment,
environmental impacts, transport provision, air traffic and other
matters, providing our thinking on how our airports will grow
and what the impacts will be both over the next decade and in
the longer-term in the period to 2030. Each draft master plan
is subject to an extensive public consultation among local communities,
airlines and other interested parties. At Heathrow and Stansted,
where there is still a lot of work to do on whether (at Heathrow)
and how (at Stansted) an additional runway will be provided, the
draft master plans are only interim. More detailed draft plans
will be produced for consultation once this work is completed.
To date Heathrow, Gatwick, Stansted, Edinburgh, Glasgow and Southampton
have produced their plans. Aberdeen is due to publish its master
plan imminently.
IMPLICATIONS OF
OLYMPICS FOR
BAA'S AIRPORTS
8. For the past two years BAA has been working
closely with the London 2012 bid team to ensure that our airports
are able to handle the passenger traffic that the Games will bring.
London's airports currently handle over 9,000 inbound flights
per week from 183 international destinations. Heathrow alone manages
67.8 million passengers a year, travelling on 92 airlines. Together
our London Airports handle almost 121 million passengers a year.
We will be handling about 160 million passengers a year by 2012.
9. In terms of daily traffic, BAA's London
airports currently handle 332,000 passengers. By 2012 we will
be handling 430,000 a day. The Games themselves will generate
55,000 passengers a day at our airports. BAA is very confident
we can comfortably handle the passengers arriving and departing
at our airports efficiently and effectively during the Olympics
for two reasons: firstly, we will have the capacity to do so;
and secondly Olympic travel will displace other underlying traffic
to other modes and to off-peak travel. London's airports today
handle five times as many passengers as Sydney did in 2000, and
the Sydney Games were a great success. The Olympic family has
a set of unique requirements in terms of logistics and processing.
With sufficient notice and the co-operation of Olympic and governmental
bodies we are confident of meeting their requirements. BAA would
like to point out that there are elements of the airport experience
which are out of our direct control. BAA will work with agencies
including the Immigration Service and Customs etc to ensure the
airport experience is a high-quality one.
AIR QUALITY
10. Air quality management is a key priority
for BAA. The UK is required to meet EU limits for levels of certain
air pollutants, irrespective of their source, by 2010 and the
Government has said that a third runway at Heathrow cannot go
ahead until those targets are met. BAA is working with the DfT
on how to bring air quality within EU limits to facilitate the
future sustainable growth of Heathrow airport. BAA is taking a
number of actions to address air particle-related emissions, it
is worth noting that a majority of the emissions in the Heathrow
area come from non-airport sources—notably the M25, M4 and
A4. BAA will continue to improve airport related emissions performance
through operational measures, through technological improvements
and through continued provision of public transport. We will also
continue to work with airlines and the industry to lobby for cleaner,
quieter aircraft. During the Games there will be an increased
number of aircraft movements. However, the displacement of passengers
leaving London during the time of the Games and those arriving
for the Olympics, coupled with technological improvements and
operational measures, will minimise aviation's air quality impacts
during this period.
WELCOMING THE
WORLD TO
LONDON
11. BAA Heathrow has a wealth of experience
in welcoming heads of state, VIPs, athletes and large groups to
the airport. In 2012 our London's airports will have even greater
capacity and even more modern facilities due to BAA's financial
investment outlined in paragraphs 3-5.
12. Once they have been met at the aircraft
BAA aims to ensure that members of the Olympic Family (athletes
and team officials, technical officials, families, media, international
federations and sponsors) are processed swiftly through our airports.
Once they have landed a trained greeter will escort Olympic family
members through the arrivals process. They will then be fast-tracked
through immigration and customs on arrival and through security
on departure. BAA will work closely with the Immigration Services,
the IOC and LOCOG to ensure this happens. There will be a dedicated
area outside the airport as a waiting point for vehicles, which
will be called forward to collect Olympians from the terminal
forecourts. BAA will also work with other transport providers
to integrate the airport to all onward travel. We will provide
a round-the-clock service to ensure the media are guided through
the airport efficiently.
13. Spectators will use the existing facilities
and processes in place at our airports. Our emphasis will be on
simplicity of information and we will ensure that passengers receive
information relating to the Olympics at branded stands and via
mobile assistants and plasma screens. Public address systems and
information kiosks will also be used to provide information to
passengers.
14. BAA would like to bring the Committee's
attention to security at our airports. During the Games our airports
will operate the appropriate levels security, and in the run up
to the Games we will work with our partners to ensure that any
additional measures are put in place. BAA strives to provide effective
and efficient security at all of our airports regardless of outside
events in the capital. To enable us to achieve our objective we
have continued to consider the development of new technologies
for securing our airports, and work with the police and control
authorities to integrate efforts to improve our overall security
while allowing growth in capacity.
TRANSPORT TO
AND FROM
THE AIRPORTS
15. BAA understands the importance of efficient
and effective surface transport during the time of the Games.
However, we believe that access to and from our airports is vital
in the long-term and to that end it is a core element of our business
strategy. Through the Heathrow Express BAA can deliver a non-stop
rail service between Heathrow and London. BAA designed, built,
paid for and operates the £750 million Heathrow Express,
which runs from Paddington to Heathrow Terminals 1,2,3 and 4.
It currently carries over five million passengers a year, taking
over 3,700 cars off the road daily.
16. BAA has also introduced Heathrow Connect,
in partnership with First Group, a stopping service from Paddington
to Heathrow, serving west London with trains every 30 minutes.
Heathrow Connect is further improving access to Heathrow for over
four million passengers living in the Thames Valley area and passengers
from the London Underground connecting at Ealing Broadway.
17. The extension of the Heathrow Express
and the Piccadilly Line are also being extended to serve Terminal
5, making the terminal a major surface transport hub.
18. BAA is also investing in road and rail
improvements at Stansted Airport. The planning application for
a second runway will be accompanied by a full and detailed Environmental
Statement and proposals for improved rail and road access. We
will continue to work with the Government, DfT Rail, Network Rail,
the Highways Agency, local authorities and transport providers
to identify surface transport solutions to support the growth
of the airport. By 2012 passengers will be able to travel straight
to the Olympic Park from Stansted Airport.
19. The Gatwick Express currently offers
a non-stop rail service between Gatwick and London, which is a
vital link to central London now, and in 2012 and beyond. BAA
would like to draw the Committee's attention to the fact that
the Gatwick Express is under threat as a result of the Strategic
Rail Authority's (SRA) proposed changes on the Brighton mainline.
These proposals, which are now with DfT Rail, following the demise
of the SRA, are still unresolved, and the Gatwick Express is therefore
still under threat. Clearly, were the Gatwick Express to be removed,
the convenience of access to London by Olympic passengers arriving
at Gatwick would be severely undermined. Although BAA does not
operate the Gatwick Express, we have conducted a robust public
defence of the service and will continue to do so. Ensuring high
quality air-rail links is a vital aspect of London's transport
system, not least in the context of the Olympic Games.
IN SUMMARY
20. BAA is delighted that London has been
selected to host the 2012 Olympic and Paralympic Games. It is
a great achievement for British sport and one which will add to
the vibrancy and wealth of the nation. BAA is confident that we
can comfortably, efficiently and effectively accommodate the Olympic
Family and spectators during the Games if we have the full and
timely support and co-operation of the relevant government agencies.
Through our investment and partnerships each of our London airports
also has dedicated rail links to central London ensuring connectivity
for their onward journey. We will continue to work with the London
2012 team and other parties to develop detailed plans to deliver
a successful Games to London.
8 September 2005
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