Airports

Adam Smith is the father of more than one sort of economics

Gandhi would test his resolve by sleeping between two naked virgins, an avenue not really open to me, as my wife is an Anglican vicar: though Anglicanism imposes almost no constraints on your behaviour or beliefs nowadays, it still frowns on sleeping with naked virgins, especially if they are of the opposite sex. So my equivalent of this exercise is to try to go into certain shops for half an hour and emerge without buying anything. Lakeland is an especially tough challenge here, but the real Matterhorn for me is an airport branch of Dixons. Last time I tried this, I found myself having to resist buying one of the

Airport wars: Heathrow and Gatwick argue about who offers the most benefits

Gatwick or Heathrow, who will triumph in the battle of the airports? Both sides have submitted more detailed proposals to the Airports Commission today, setting out why they are the right choice for expanding the UK’s airport capacity. While Boris Island appears to be mostly sidelined, the battle is looking to be between a second runway at Gatwick and a third (or possibly extending the second) runway at Heathrow. In the revised proposals, Heathrow has increased its compensation fund for the effected 750 homeowners to £550 million, while Gatwick argues its expansion would be cheaper, more beneficial and have a lesser environmental impact — 14,000 people vs 250,000 for Heathrow.

Airports Commission focuses on new runways at Heathrow and Gatwick

In the past few minutes, the Airports Commission has published its interim report. It’s the first big opportunity for there to be a political row over aviation capacity since the government kicked the issue into the long grass, and Sir Howard Davies’ shortlist in this interim report certainly provides some opportunities for a row. The shortlist as it stands does not include Boris Johnson’s favoured Estuary Airport, instead favouring new runways at Heathrow and Gatwick. The Commission will now consider a 3,000 metre runway south of the existing runway at Gatwick, and two different runways at Heathrow: a 3,500 metre runway to the northwest of the airport, and a 6,000

Briefing: The Davies Airport Commission

What’s happening? Tomorrow, former CBI economist Howard Davies will release an interim report on the options for expanding Britain’s airport capacity. Some of the possibilities Davies has been considering include developing the regional airports (possibly with a High Speed rail element), building a new giant hub airport in the Thames Estuary, expanding capacity at Gatwick or Stansted Airports, or building a new runway at Heathrow. What will Davies say tomorrow? Both Sky News and the Sunday Times have reported that Davies is going to back three ‘favoured options’ in his report: Third runway at Heathrow Third runway at Heathrow and one at Gatwick Two new runways at Heathrow As well

What about airports, Danny?

Danny Alexander has delivered his eagerly anticipated infrastructure statement to the Commons. He described the package as ‘the most comprehensive, ambitious and long-lasting capital investment plans this country has ever known.’ That’s quite a claim, Danny. To judge the truth of it, the public can examine the speech below, the Treasury’s interactive guides and the full document here. Major upgrades are planned to the road and rail networks in certain places. And substantial investment has been earmarked for schools, high-speed broadband and scientific research. This is all well and good. There are, however, a couple of notable gaps. There’s very, very little on airports (which is no surprise, given the government’s policy not to have an aviation policy). But I wonder how Britain will compete

Low life | 21 March 2013

The final few passengers straggled aboard and a sulky, petulant-looking BA steward, his orange face creased with sleep, passed through economy slamming up the overhead lockers. Though trained to be cheerful, democratic and polite, tonight, at least, none of these crowd-pleasing attributes came naturally to him. The rictus grin said: Economy, I despise you all. I had a row of seats to myself and fervently hoped this state of affairs would prevail. The last to board was a young couple burdened with hand luggage and a sleepy child each. Mum and the kids arranged themselves in the row in front of me, while Dad, a huge blond-haired man, squeezed himself

Airports review is doomed to gather dust, British Airways chief warns MPs

The government’s airports review will simply end up on a shelf, and major airlines will still be operating from a two-runway airport at Heathrow in 2050. That was the stark warning delivered by the chief executive of British Airways’ parent company IAG Willie Walsh this afternoon as he gave evidence to the Transport Select Committee. Walsh told the MPs on the committee: ‘I think the decision of the government to establish the Davies commission has been seen by some as a step in the right direction. I think personally I’m not optimistic… My own view is that the issue is too difficult for politicians and governments to deal with and I’m

Aviation: Don’t say one thing and do another

Some tickets to the Spectator’s next debate, ‘No Ifs, No Buts: Heathrow Must Have a Third Runway’, are still available. Tim Yeo, chairman of the energy and climate change select committee, and Jon Moulton, chairman of Better Capital, and influential Tory backbencher Graham Brady will be speaking in favour of the motion, while Daniel Moylan, Boris’ right hand man, and John Stewart, chairman of the ClearSkies campaign, will oppose the motion. Click here for more information and the box office. In the piece below, Cheryl Gillan MP, the former Secretary of State for Wales, discusses many of the economic issues that surround this vital political debate. The danger of putting the cart before the horse

No ifs, no buts, we need a decision on Heathrow now

The Prime Minister presumably believes we face a critical shortage of airport capacity in London. Why else would he signal a possible U-turn on what was a headline pre-election promise? He knows that one reason west London voters backed the Conservatives in the last general and local elections was his decision to rule out any prospect of building Labour’s 3rd runway at Heathrow. But if that is how he feels, why on earth would he commit to doing absolutely nothing for three years? I am yet to meet anyone who believes an airport review should take anything like so long; indeed the majority of options have been studied to death.

Sir Howard Davies makes himself at home in the long grass

The chair of the government’s airports commission was refreshingly honest about the purpose of his review when he appeared on the Today programme this morning. Sir Howard Davies said: ‘I have reflected quite hard on the criticisms about long grass that the Mayor of London and Michael Heseltine say, that this is booted into the long grass. So how can you make best use of your time in the long grass? What I think we can do is do a lot of the preparatory work. I think we can do that so that when a new government comes into office in 2015 when they make a decision it will have

Clegg mulls airport expansion

This country’s willingness to fritter away London’s hub airport status is an act of economic self-harm as the Conservative side of the government finally seems to have realised. But there’ll be no progress this side of the election as long as the Liberal Democrats remain wedded to their opposition to any new runways in the south east. So, the news in today’s Times that the Liberal Democrats are considering backing a new hub airport in exchange for the closure of other runways is to be welcomed. I understand that things may be even further on than the conference motion suggests. I’m informed that Nick Clegg has seen a Cabinet Office

Boris seeks rebel representative in the Commons

Boris Johnson is on the look-out for a ring-leader in parliament for his push against the expansion of Heathrow, I understand. His people have been calling around sympathetic backbench MPs trying to persuade one of them to head up the campaign in the Commons. On first glance, Zac Goldsmith might have been an obvious choice, given his talks with the Mayor of London about a by-election in his seat if the government does U-turn on a third runway. But Boris wants someone who is less of an individual within the party who can co-ordinate backbenchers in a revolt. Presumably he also needs an MP who can spearhead not just the

Boris muscles in on Davies’ airport inquiry

Boris Johnson has already denied that the work he is carrying out on airport capacity in London is a rival commission to the one set up by the Government and led by Sir Howard Davies. ‘I was a bit flummoxed by that,’ he told LBC this morning. ‘What we’re doing is we are going ahead with our contribution to the Howard Davies commission.’ It doesn’t actually matter whether the Mayor is holding an inquiry called the Johnson Inquiry Into Airports, with its own logo and press launch, or whether he’s actually just calling experts together to develop a detailed submission to the Davies Commission as he suggests he is. The

The answer lies to the east of Heathrow

A retired civil servant of my acquaintance usually provides a telling perspective on the administrative affairs of the day. We discussed the Heathrow row recently. He said that it was ‘right’ to delay any decision until 2015 so that proper investigations could be made and considered. If he thought that the Tories would not dare break their no-runway manifesto pledge in this parliament, then he did not mention it. For him, it was a question of process and nothing else. The policy not to have a policy on Heathrow until 2015 certainly exudes a bureaucratic air, compounding the sense that this government has fallen captive to a conservative civil service. But

Osborne’s grim morning

‘Unfortunately, it’s not enough.’ That is, broadly, the conclusion of John Longworth, the director of the British Chamber of Commerce, who has penned a visceral critique of the government’s economic policy in the Observer. Nothing, it seems, is sufficient: half-hearted infrastructure investment, non-existent aviation policy, lethargic borrowing to business, and regulatory reform that leaves businesses ‘mired in a thicket of red tape’. Longworth laments economic policy being determined by ‘political short-termism, electoral calculation and presentation’. This swipe at George Osborne adds to the sense that professional and international bodies are turning on the chancellor, after the IMF’s warning last week (rather callous of it, considering that Osborne has been following

Failing to build another runway is economic self-harm

The continuing failure to build another runway in the south east, let alone a new airport, is an act of economic self-harm. Trade used to follow the flag, it now follows the flight path. This makes it particularly depressing that the government is pushing back its aviation strategy yet again. As one Tory MP said to me earlier, ‘if we’re not serious enough about growth to build another runway we should just go home’. David Cameron needs to do what it takes to get another runway through. If that means moving Justine Greening, a long-time opponent of a third runway at Heathrow, from transport then he should do it. Indeed,

Boris beats two loud drums

Boris Johnson’s interventions today are another reminder of his ability to please the Tory tribe, and be a thorn in Cameron’s side. The prime minister has concluded that the best approach on Europe is to argue that the Eurozone needs to follow through on the logic of the single currency and move to fiscal union. This is not a popular position in the Tory party. From the Cabinet down there are doubts about the wisdom of it; I understand that Justine Greening told last week’s Cabinet meeting that she did not believe that a transfer union could be made to work. But no senior Tory expresses their disagreement with this

The coalition needs to get a move on

David Cameron’s speech today says all the right things about infrastructure. But the test will be whether Cameron forces these changes through the system.   Already, the planning reforms have been held up by a lengthy consultation. The government will respond to this consultation this week. But that won’t be the end of the matter. For even after the government has set its plans before parliament, there’ll be a ‘transition’ period between the old rules and the new ones.   All of which is a reminder that if Britain, and especially the capital, is going to get the extra airport capacity it so desperately needs, then decisions will have to

The government’s airport conundrum

There is a growing acceptance in government that the South East needs more airport capacity. But, as today’s Times outlines, there’s nowhere near agreement on how best to achieve this. The big problem with a new airport on the Kent coast or ‘Boris Island’ is that the Dutch would not be prepared to open up the necessary air space. They control most of the air above the North Sea under international treaty because of Schiphol airport. I understand that feelers put out to the Dutch on this matter have been rebuffed. Another option is Heathwick. The idea is that an extra runway is built at Gatwick and then the two

How will Greening deal with the airports issue?

One Cabinet minister fretted to me yesterday about the implications of Justine Greening’s appointment as Secretary of State for Transport. Their worry was not Greening’s position on the Tory ideological spectrum but her views on aviation. This minister worried that Greening, who helped lead the opposition to a third runway at Heathrow, would be against any expansion in airport capacity. In recent months, opinion has been shifting at the top of the Tory party on the airports issue. People were increasingly coming round to the view that there was need for an extra airport or at least an extra runway somewhere close to the capital. They were, in line with the general