Sunday, October 2, 2011

Heathrow airport losing European hub status as Hubs critical to growth says Report

Neelam Mathews Oct 2, 2011

There are some interesting figures in graphs at the bottom- thought aviation honchos might like to take a look.

The lack of direct flights to Emerging Markets may already be costing the UK economy £1.2bn a year as trade goes to better-connected competitors.The value of this missed opportunity to the UK economy over the next 10 years could total £14bn. Paris and Frankfurt already boast 1000 more annual flights to the three largest cities in China than Heathrow.

In its scoping document, Developing a sustainable framework for UK aviation, the Government tackles the issue whether it is even necessary for the UK to have a hub airport. Colin Matthews, Chief Executive, BAA answers that question with an emphatic ‘yes’ in a foreward to Frontier Economics report. 

The report shows that it is hub airports (as opposed to point-to-point) that are critical to establishing flights to growth destinations; and that because the UK’s hub airport at Heathrow is full, Britain is missing out on opportunities for trade and falling behind European competitors

The report demonstrates the relationship between frequent direct flights and economic growth. It finds that UK businesses trade 20 times as much with Emerging Market countries that have a direct daily flight to the UK as they do with those countries that do not.

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