Aviation Strategy

Written evidence from Liverpool City Region Local Enterprise Partnership (AS 52)

Liverpool City Region Local Enterprise Partnership (LEP) welcomes the opportunity to respond to the Transport Select Committee Inquiry into Aviation Policy Strategy.

We advocate an aviation strategy which addresses the barriers to regional competitiveness and supports the realisation of the recommendation for increased international connectivity in the 2011 report [1] by the RT Hon the Lord Heseltine CH and Sir Terry Leahy.

We have set out our response to the issues the Transport Committee aim to address below.

1. The importance of international aviation connectivity to the UK

1.1. We recognise the importance of international aviation connectivity to the UK. Specifically as a regional airport, Liverpool John Lennon Airport is of vital importance to the connectivity of Liverpool City Region and to the international perception of Liverpool City Region as an attractive area in which to invest.

1.2. The Government’s Draft Aviation Policy Framework recognises the "important role in UK connectivity" offered by regional airports in England; yet the consultation paper centres the debate on Heathrow and the south east. Connectivity to the UK’s City Regions is integral to rebalancing the economy which is a consistent theme from the Government.

1.3. Liverpool City Region has the Government’s backing to host an International Festival of Business in 2014 which is an ambitious 61 day programme of national consequence yet we have no hub link from which visitors would easily be able to access such a high profile event. This issue could limit the impact of the effort and investment which will be undertaken to deliver a successful programme of events.

1.4. There is growing demand for regional connectivity. Liverpool is the fifth most visited city in the UK by international visitors. Globalisation is resulting in international visitors who expect to connect to cities such as Liverpool upon arrival at a hub airport. Over the last 5 years its growth in overseas visits has outstripped every UK city but for Glasgow.

1.5. HS2 should not be regarded as an alternative to regional aviation connectivity but rather as a complement to a modern transport network which offers the consumer choice and encourages market competition.

2. The impact of Air Passenger Duty (APD)

2.1. The August 2012 Inquiry into Aviation Policy and Air Passenger Duty from the House of Commons All Party Parliamentary Group for Aviation calls for the Government to implement a study "to quantify the full impact of APD on UK competitiveness" which is a view with which we concur.

2.2. APD requires a joint strategy across industry, the Treasury and Department for Transport to ensure it is not adversely affecting economic growth and employment. The current arrangement has a greater impact on regional airports which is inconsistent with the Government’s policy to rebalance the economy. Regional airports require the opportunity to compete on a national level.

3. Making the best use of existing aviation capacity

3.1. Regional airports can help alleviate capacity constraints in the south east especially as airports within the south east will be more or less full by 2030.

3.2. We suggest London hub slots are ring fenced to promote regional connectivity which will benefit the UK as a whole in terms of distributing foreign investment, regional economic development and easing capacity issues. The current economic model is not viable for enabling regional airports to use Heathrow slots.

3.3. We support the availability of route development funds and suggest that this mechanism is considered to support regional airports in realising their ambition to successfully maximise the potential for new routes.

4. Sustainable aviation strategy

4.1. We support the development of a sustainable aviation strategy but this must be weighed against the imperative for regional growth. In fact there is an argument for the efficient use of regional airports which minimises journey times to and from airports and minimises the carbon impact of surface access.

In summary Liverpool City Region LEP ask that consideration is given to the parity of UK aviation policy to ensure both short term and long term economic growth both nationally and regionally.

19 October 2012