Chapter 4 - The air transport sector

4.1 In the following chapters we set out our conclusions on the airport capacity needed over the next 30 years. This chapter describes the wider context within which the aviation industry operates, both internationally and across the countries and regions of the UK. It also considers the implications of these and other cross-cutting issues for future airport capacity, and sets out our policies in these areas.

An international industry

4.2 Aviation is a quintessentially international industry. There are few areas, apart from airport development, in which the UK is free to make policy in isolation from other countries. Most new aviation legislation now originates at the European Union (EU) level. On wider European issues we co-operate closely with the 40 other countries in the European Civil Aviation Conference (ECAC), and a global framework of minimum technical standards is produced by the International Civil Aviation Organisation (ICAO) (see box).

4.3 In the EU, the creation of the single market has dismantled traditional restrictions on market access, capacity, frequencies and fares. Airline licensing, slot allocation, ground handling and various aspects of consumer protection are all subject to Community law. Member States have also been ready to accept that the EU should take the lead in appropriate technical fields such as safety regulation, air traffic management and environmental matters. This has led to the creation of the European Aviation Safety Agency and proposals for a 'Single European Sky' for the purposes of air traffic management.

4.4 Over the next 10 years we can expect to see further developments, including extension of the single aviation market (already effectively covering Norway, Iceland and Switzerland) to include those states which will have acceded to the EU, and perhaps some neighbouring countries as well; and an increasing role for the EU in conducting aviation relations with other countries. In addition there will be further development of the 'Single European Sky', ¹ and a consequent decrease in the number of air traffic management centres in Europe. The European Aviation Safety Agency (EASA) is likely to take on responsibility for rule-making in all matters relating to operations, personnel, airports and air traffic management. And we can expect further EU legislation for harmonising and strengthening environmental protection measures - both on noise and emissions.

4.5 Global standards in such areas as safety, air traffic management, navigation satellite systems, security, and accident investigation will continue to be set by ICAO. This will help to secure stable, harmonised and internationally recognised standards, and avoid a proliferation of local rules. An extended and strengthened role for ICAO in auditing safety standards in contracting states will be important if we are to move successfully towards a more liberalised commercial environment.

Key International Bodies

The European Union
The EU currently consists of 15 Member States, with a further ten set to join in May 2004. It has powers to adopt legislation which is binding - either directly or following transposition into national law - on Member States.

The International Civil Aviation Organisation
ICAO is a United Nations Specialist Agency which aims to promote the safe and efficient development of international civil aviation. Founded in 1944, ICAO currently has 188 Contracting States. Contracting States are obliged either to comply with the minimum safety, security and environmental standards established by ICAO, or to inform other States of variations.

The European Civil Aviation Conference
ECAC was founded in 1955 to promote co-operation between European states on civil aviation matters. It is not a law-making body, but provides a forum for the exchange of views, advice and information. ECAC currently has 41 Member States, and is particularly active in assisting European countries with less developed aviation industries.

EUROCONTROL
EUROCONTROL (The European Organisation for the Safety of Air Navigation) develops short, medium and long-term initiatives in a collaborative effort with 33 Member States, industry, and airspace users. Since its inception, Eurocontrol has promoted a number of significant benefits to the European air traffic management system, including the setting up of the Central Route Charges Office, which collects and disburses route charges on behalf of Member States.

Safety

4.6 Safety will continue to be of prime importance across the aviation sector. The UK air transport industry has a good record, with accident rates kept low despite the rapid rise in traffic levels over the past two decades. But the Government, the Civil Aviation Authority (CAA) and the industry are determined to ensure that we maintain the present high safety standards, identify potential threats and seek appropriate improvements.

4.7 In seeking improvements, we recognise the importance of independent checks on our national safety systems. Both the CAA and the Department for Transport's Air Accidents Investigation Branch have already been audited by ICAO experts and received good reports. Both organisations will take the necessary remedial action where an audit suggests things can be done better, and will continue to be subject to follow-up checks. In addition, the CAA will ensure that the proper level of safety regulation is delivered as cost-effectively as possible, so as not to disadvantage UK industry.

4.8 To ensure effective policing of international standards, we will continue an active policy of inspecting foreign aircraft visiting UK airports as part of a joint European action programme, soon to be enshrined in EC law. We will also continue to support the strengthening and broadening of ICAO's auditing activities, and agree concerted action if other countries fail to ensure the safety of their aviation.

4.9 Within Europe, a genuinely single market in air transport services calls for common rules and harmonised standards of implementation. Establishing a properly resourced and legally robust regime, based on the EASA, for ensuring high safety standards across Europe is an important step forward. We will work to ensure that EASA delivers an efficient, high quality safety regime as the European Common Aviation Area gradually expands. In supporting liberalisation beyond Europe, we must demonstrate that it will not lead to lower safety standards or loss of effective safety oversight, and must ensure clear lines of responsibility leading back to specifically accountable regulatory authorities.

4.10 For people living and working near airports, safety is best assured by ensuring the safe operation of aircraft in flight. However, in areas where accidents are most likely to occur we seek to control the number of people at risk through the Public Safety Zone system. Public Safety Zones are areas of land at the ends of runways at the busiest airports, within which development is restricted. Our basic policy objective is not to increase the number of people living, working or congregating in Public Safety Zones and, over time, to see the number reduced. Where necessary, we expect airport operators to offer to buy property which lies wholly or partly within those parts of the zones where the risk is greatest. We will continue to protect those living near airports by maintaining and, where justified, extending the Public Safety Zone system.

Aviation security

4.11 We have for many years operated a stringent aviation security regime which, in many respects, exceeds the standards and recommended practices laid down by ICAO. Its key principles are that protective measures should reflect an assessment of the threat at any given time, and be capable of providing a properly robust defence.

4.12 We have further tightened security since the attacks in the USA of 11 September 2001. Action has included extending the list of prohibited items in the aircraft cabin, carrying out secondary searches of passengers and their cabin baggage at the departure gate, requiring UK airlines to fit special intrusion-resistant flight deck doors, and establishing a capability to put covert armed police on UK aircraft where necessary. And with the valuable input from a recent review of airport security, ² we will work to improve liaison between the various government agencies in the UK with a regulatory role at airports - HM Customs and Excise, HM Immigration Service and the Police, as well as the Department for Transport.

4.13 The primary aim of aviation security is the protection of aircraft and their occupants. It is right, in our view, for industry to meet the full costs of security - as it does other running costs - and to pass these costs on to the consumer as appropriate. We do not believe the general taxpayer should have to subsidise the aviation industry through Government funding of security, beyond our considerable programme of research and training.

4.14 Today an important vulnerability arises beyond our shores, in countries whose aviation security arrangements may be less robust than our own - in some cases very much less. So we are strengthening and accelerating our programme of engaging relevant foreign governments in an effort to drive up aviation security standards overseas, including for services by foreign airlines to the UK. We will continue to press in appropriate international forums for improved standards world-wide.

4.15 The aviation industry is changing rapidly. We will ensure that aviation security evolves in parallel, both through improvements to the measures already in place and identification and development of imaginative new approaches and maximum use of new technologies.

Service quality

4.16 Standards of service are a legitimate element of competition between operators. Many travellers, for example, attach more importance to price than to in-flight service, particularly on shorter routes. Provided certain minimum levels of consumer protection are offered, we see no reason for the Government to insist on operators meeting defined standards of service. Healthy competition between operators and reliable consumer information are the starting points for ensuring that the customer gets good value for money.

4.17 The steady growth in the number of people flying has brought a sharper focus on passenger issues, and we can expect this to continue. Consumers in all sectors feel more empowered in expecting high levels of personal attention and customer service, and more confident in making complaints. Airlines and airports need to respond to this wider trend. And with more elderly and mobility impaired people flying, the industry will come under increasing pressure to raise standards of passenger care.

4.18 We support the European Voluntary Commitments on passenger service, which include important protocols on meeting the needs of disabled people when flying. This is a welcome step forward, but we take the view that ensuring that airlines do not charge disabled people directly for services, or refuse to carry them, should be the subject of European Community legislation. At UK level, airlines and airports have agreed to follow a Code of Practice on access to air travel for disabled people, which complements the European Voluntary Commitments.

4.19 European Community legislation already regulates the provision of package travel, compensation for denied boarding, carrier liability in the event of accidents or loss or damage to baggage, and Computer Reservation Systems. In the future this coverage is expected to extend to the treatment of passengers subject to cancellation and delays, and the provision of consumer reports on airline performance so that passengers can make informed choices between them. We will support moves at Community level to strengthen air passenger rights, particularly where the aim is to empower consumers, and so long as they are confined to securing minimum rights which should be enjoyed by all passengers, without inhibiting innovation, reducing consumer choice, or imposing a disproportionate regulatory burden.

4.20 Within the UK, further action to promote and strengthen consumer interests will include:

• reviewing the Air Travel Organisers' Licensing arrangements in the light of the CAA's current consultation on financial protection for air travellers and package holidaymakers;
• seeking statutory powers to impose a new levy to ensure future solvency of the Air Travel Trust Fund;
• retaining the Air Transport Users Council as the organisation representing the interests of air passengers;
• working closely with the industry, the police and other interested parties to minimise the amount of disruptive behaviour on board aircraft, including maintaining the Government's unified incident-reporting scheme;
• working closely with the CAA's new specialist unit on aviation health issues, promoting research, and keeping advice to passengers and crew up to date; and
• the work of the Office of Fair Trading in promoting consumer choice.

Aviation and tourism

4.21 Consumers have benefited greatly from the growth in foreign travel. Today, UK residents make around 60 million visits overseas each year, compared to just thirteen million in 1978. Around 80 per cent of these are by air. Not only do we enjoy an unparalleled choice of destinations, including many international services operating from regional airports, but also wider and speedier access to a range of consumer and other goods airlifted from overseas markets.

4.22 The importance of in-bound tourism to the UK economy is referred to in Chapter 2. It accounts for an estimated 4.4 per cent of GDP in 2002, and more than two million direct jobs. Outbound tourism too, although sometimes presented as encouraging people to holiday abroad to the detriment of the domestic economy, also contributes significantly to the economy through revenue earned by tour operators and the air transport sector.

4.23 The Government, working with VisitBritain and the Tourism Alliance, has launched a series of recent programmes and campaigns to attract foreign visitors and encourage domestic tourism, in the face of a widening gap in the tourism balance of payments. Britain can compete on its strengths while at the same time enabling British people to holiday abroad and gain from the revenue this generates for British tour operators, airlines, airports and other services. British travellers have little alternative to air travel for long-haul, and many short-haul, destinations, and limits on air capacity would greatly disadvantage incoming tourism, through decisions by travellers from overseas to switch to more convenient and lower-cost destinations away from the UK.

Airports and regional economies

4.24 Airports are an important focus for the development of local and regional economies. They attract business and generate employment and open up wider markets. They can provide an important impetus to regeneration and a focus for new commercial and industrial development. And they are increasingly important transport hubs, especially for the logistics industry (see Air freight below).

4.25 Many airports increasingly act as a focal point for 'clusters' of business development. By offering the potential for the rapid delivery of products by air freight and convenient access to international markets through the availability of flights for business travel, they can attract inward investment to a region.

4.26 Some airport clusters, such as those in the West of Scotland or at Bournemouth airport, relate directly to the provision of aviation-related services, such as aircraft maintenance and aeronautical components. At present, however, the majority of indirect employment associated with the supply of goods and services to airports and the airlines which operate from them is located in the South East of England. Building local supply chains and capacity for the aviation industry, including the promotion of Centres of Excellence for aircraft maintenance (see box), could bring important benefits to the economies of regions, as well as assisting the airports and airlines that serve them.

4.27 For all these reasons, it is essential that proposals for new airport capacity and related development both reflect, and are reflected in, the spatial development, transport and economic strategies of the English regions and Scotland, Wales and Northern Ireland. The Government expects the relevant English regional bodies to take the conclusions in this White Paper fully into account in drawing up their strategies, and the devolved administrations are encouraged to do the same (see also Chapter 12).

Developing the Aircraft Maintenance, Repair and Overhaul Sector

The UK's leading role in commercial air transport has resulted in the development of an extensive maintenance, repair and overhaul sector in this country. This includes a number of specialist independent, companies who can offer airlines the opportunity to outsource maintenance work, if they need to concentrate on their core business activities and reduce their fixed costs.

As well as serving domestic airlines, maintenance companies based in the UK are well placed to attract business from overseas carriers, based on comparative costs, geography, skills and reputation. The UK currently has some 20 per cent of the European market; and with the world's commercial airliner fleet expected to double over the next twenty years there is a significant opportunity to expand the sector by maintaining or increasing the UK's share of this business.

At the same time, there are concerns about the industry's ability to provide sufficient numbers of licensed engineers and other well-qualified technical personnel to meet the industry's long-term need. This is particularly the case in the South East where the majority of maintenance operations are currently concentrated, but where living costs and wage levels are rising fastest.

The Government therefore wishes to promote the establishment of a number of Centres of Excellence in civil aircraft engineering and training at airports outside the South East of England. This would have a number of advantages:

• encouraging the growth of this sector, and of the UK's share of an increasing global market;
• increasing competitiveness as a result of lower labour and facilities costs outside the South East,
• increasing the supply of well-trained engineers and technicians for the industry as a whole (including operations based in the South East);
• encouraging the growth and economic benefits of regional airports; and
• reducing pressures at the busy London airports, so freeing up space for additional passenger and freight facilities.

There are already well-developed proposals for Centres of Excellence in the West of Scotland and the North East, and the concept is being examined in South Wales. But the opportunity exists to extend the idea to other UK airports, particularly where they can build upon established maintenance facilities or aerospace clusters.

The Department for Transport will work with other Government departments, devolved administrations, skills agencies, regional bodies and the industry to develop these ideas further and facilitate their implementation.

Air freight

4.28 Airports play an increasingly important role in the supply and distribution of goods within their regions. At major airports, such as Heathrow, Gatwick and Manchester, freight is predominantly moved in the holds of passenger aircraft ('bellyhold'), but other airports also cater for dedicated freight-only aircraft. Stansted and East Midlands are the UK's largest freighter airports, and Edinburgh, Glasgow Prestwick and Belfast International also have important roles serving regional markets.

4.29 The speed of delivery that air freight can offer is an increasingly important factor for many modern businesses, especially where just-in-time practices and high value commodities are concerned. Work carried out in connection with the consultation exercise suggests that specialist express carriers could account for over 50 per cent of the air freight market by 2030.

4.30 The ability to meet the world-wide rapid delivery and logistics requirements of modern businesses is an important factor in assuring the future competitiveness of both the UK and regional economies. The Government wishes to ensure that there are airports in the UK able to accommodate the anticipated growth in demand in this area, subject to the satisfactory resolution of environmental concerns, especially in respect of night noise.

Growing regional airports

4.31 Most airports serve local demand, generally from within their own region. However, larger airports, such as Manchester and Birmingham and a number of those in the South East, also attract passengers from a wider area. These airports provide services to more destinations - some of which would not be viable from smaller airports - and also offer more frequent services.

4.32 The major London airports play a dual role. Around 80 per cent of their passenger traffic ³ has an origin or destination in London, the South East or the East of England. These regions have a very high level of demand for air travel, accounting for nearly half the total UK demand. This enables airlines to offer a very wide range of destinations from the London airports, with frequent services, and with two or more competing airlines on most routes. As a result, Heathrow, Gatwick, and increasingly Stansted also, play a national role as a well as a regional one. Many travellers from other parts of the UK fly to one of these London airports in order to catch connecting flights. And many travellers from Wales, the Midlands and parts of the South West travel by road or rail to the major London airports.

4.33 The demand for passenger air travel is growing fastest outside the South East, and this trend is expected to continue. As a result, airlines should be able over time to offer direct services to more destinations from a wider range of airports.

4.34 The recent emergence of 'no-frills' services, offering a new model of service provision, has stimulated demand across the country, but has been a particularly important factor in the growth that has occurred over the last ten years at many regional airports. Apart from bringing air travel within the reach of more people, it has opened up new routes and destinations. The 'no-frills' sector throughout the UK has expanded from carrying under eight million passengers a year in 1998 to 35 million in 2002, and a projected 47 million in 2003.

4.35 The Government's policy is to encourage the growth of regional airports to serve regional and local demand, subject to environmental constraints. This will have a number of benefits, including:

• supporting the growth of the economies of Scotland, Wales, Northern Ireland and the English regions;
• relieving congestion at more over-crowded airports, particularly in the South East, and therefore making better use of existing capacity;
• reducing the need for long-distance travel to and from airports; and
• giving passengers greater choice.

This policy is reflected in the conclusions set out in the following Chapters. It is also supported by the proposal later in this Chapter to encourage the Welsh Assembly Government and English Regional Development Agencies to establish new route development funds.

4.36 The great majority of airports in the UK are operated on a commercial basis whether privately or publicly owned. At these airports we will look to the operators to determine the exact form of development needed and to bring forward proposals for investment in new capacity, in a timely manner, to be funded commercially. However, exceptions to this approach may occur where:

• small local airports are owned by local authorities or by the Scottish Executive. Some of these airports require deficit funding to cover operating costs and investment in new capacity, but in return offer important accessibility, economic and social benefits to the catchment areas which they serve; or
• airports fall within Objective 1 and 2 Areas. ⁴ In these cases, applications for public funding to help finance investment in new capacity will be considered on their merits on a case by case basis, provided there is clear evidence that the project is not fundable commercially, after account is taken of an appropriate contribution from airport charges to cover the costs of additional infrastructure. The proposals will also have to offer good relative value for money and not be anti-competitive.

4.37 In each of these circumstances, some limited public funding may be appropriate provided it is clearly justified by the contribution that the development of the airport can make to wider employment creation, regeneration, social inclusion and regional and local economic development programmes.

4.38 It is likely that the Government's policy of encouraging the growth of regional airports will have some impact on demand at airports in the South East. The predominant role of South East airports is, however, also a regional one (over 80 per cent of their terminal passenger demand being South East based). The development of regional airports will therefore not have a material impact on demand for additional capacity in the South East.

Regional air services to London

4.39 A key issue for Scotland, Northern Ireland, the North of England and parts of South West England is the availability of landing and take-off 'slots' at other airports, particularly the major London airports. At congested airports in the UK, where demand for slots exceeds supply, slot allocation is governed by EU law and implemented by a slot co-ordinator who is required to act in an independent manner (see box).

The Current Slot Allocation Regime

EU Regulation 95/93 provides common rules throughout Europe. These are aimed at ensuring neutral, transparent and non-discriminatory allocation, and at providing some certainty for airlines, whilst encouraging competition.

The Regulation allows airlines to retain slots allocated to them by the co-ordinator provided they used them for 80 per cent of the previous equivalent season. When new slots become available, either as a result of new capacity being provided or because existing slots are handed back to the pool by airlines which no longer require them, some priority is given to new entrants.

Slot allocation at Heathrow, Gatwick, Manchester, Birmingham, Glasgow and Stansted is carried out by a company approved for the purpose by the Secretary of State for Transport.

The pressure on slots in the UK has led to the development of a 'grey market' in which airlines trade slots with one another in order to increase their holdings or obtain more attractive slots that would not otherwise become available through the pool. This gives airlines commercial flexibility, enabling them to acquire additional or more attractive slots. UK and foreign airlines have been able to secure slots at Heathrow and Gatwick airports by trading and acquiring interests so as to provide services better suited to the needs of consumers.

4.40 The current allocation system contains fundamental weaknesses. The majority of slots at congested airports are awarded on the basis of historic use - so-called 'grandfather rights', and not in ways that reflect their true value or benefits to consumers and the economy. The Government wishes to see a slot allocation system that encourages the more efficient use of scarce capacity. We believe that at congested airports a transparent, market-based approach should offer the best solution; and that if airlines' decisions on slots reflect consumers' preferences, as expressed in their willingness to pay for flights, this should maximise benefits to consumers. Changes to the law governing slot allocation require the support of the rest of Europe and we will work within the EU to pursue this objective.

4.41 We recognise, however, that in deciding whether to buy or sell slots, airlines will not take into account all the wider economic and other benefits that domestic air services to London may bring to other parts of the UK. The Government notes that the Route Development Fund established by the Scottish Executive in November 2002 has been very successful, having already helped to deliver fifteen new routes from Scottish Airports, bringing the prospect of substantial benefits to Scotland's economy. We are also aware that the Northern Ireland Administration has recently established a similar fund, and that a number of new routes are in prospect as a result.

4.42 We believe that the establishment of further funds in Wales and in English regions outside the South East and East of England could play a valuable role in establishing new direct business links from both primary and secondary airports in these areas, thus stimulating inward investment and tourism. We accordingly invite the Welsh Assembly Government and the relevant English Regional Development Agencies to consider whether they would wish to set up a route development fund to encourage the establishment of new services at airports in their respective areas, and to consider what priority they would attach to such a fund.

4.43 Any such fund will need to comply with UK and European Union law, especially in respect of state aids and competition. In particular, ensuring transparency and non-discrimination will be essential. The Department for Transport will accordingly continue to monitor and offer guidance on the structure and operation of the existing funds and any others that are brought forward in order to:

• ensure compatibility with EC guidelines;
• address any problems that may emerge; and
• keep under review the contribution they are making to regional economic development targets.

4.44 In addition, and recognising the importance of regional services, the Government is prepared to intervene in well defined circumstances to protect slots at the London airports for such services by imposing Public Service Obligations (PSOs). The imposition of a PSO enables the slots used for that service to be 'ring-fenced', so that an airline cannot use them for a service to an alternative destination. The rules for imposing PSOs are set out in European regulations (Regulation 2408/92 and Regulation 95/93).

4.45 The Government will apply PSOs where, in accordance with the existing EU Regulation 2408/92, three criteria are met:

• the route is to a peripheral region, or to a development region, or is a 'thin' route; we will consult shortly on the details of this;
• the air service concerned is vital to economic development for the region; and
• a PSO is required to ensure an adequate level of service. We will be consulting regional stakeholders and the aviation industry shortly on an appropriate definition of 'adequate' bearing in mind the importance to travellers of services at both peak and off peak times.

4.46 The Government will work closely with the European Commission and other Member States with the aim of ensuring that any amendments to the regulations will recognise the importance of regional access to London airports. In the interim, it will be necessary to develop clear guidelines so that any applications for the imposition of PSOs on routes from regional airports into London can be processed in an objective and transparent manner. For the purposes of this policy, London airports will include Gatwick, Heathrow, London City, Luton and Stansted.

4.47 Under current Community law it is not possible to impose a PSO on a route between two cities or regions on which adequate services are already being operated commercially and the airline concerned has no intention of withdrawing from the route. We propose that, where there is an existing service, PSOs would be imposed only when an airline's withdrawal from a currently operated route would reduce the frequency level below an adequate level. In judging whether there was an adequate service, we would take into account the frequency of services, the timing of the services, and the seat capacity offered. Airlines currently operating services to London airports will be asked to provide the Government with at least four months' notice of their intention to withdraw from a route or reduce frequencies if, as a consequence of such withdrawal or reduction in service, the overall level of service went below an adequate level.

4.48 Demonstrating the importance of the service to the economic development of the region concerned will be the responsibility of local bodies such as the relevant Devolved Administration, Regional Development Agency or local authority. It will also be for these bodies to reimburse the Department for Transport for any funds provided for subsidies, should these be required.

Long-distance rail alternatives

4.49 In assessing the need for additional airport capacity we have considered the scope for substitution by alternative modes, and in particular rail.

4.50 Passengers on internal flights currently account for some thirteen per cent of total traffic at UK airports. Most of them are on flights between the London airports and other parts of the UK. These services are important for point-to-point traffic, especially to and from Scotland, Northern Ireland, the North of England and parts of the South West, but also for passengers wishing to connect with onward flights or reach destinations in the South East outside central London.

4.51 Studies suggest that rail competes well with air on point-to-point journeys of two to three hours. So rail is, for example, the preferred option for inter-urban travel between London and the Midlands. But for longer journeys air travel is the mode of choice. For example, comparing business trips by rail or by air from Scotland to London and the South East, the overwhelming majority - some 93 per cent - are by air.

4.52 Investments to improve our inter-urban rail network will, over time, increase the attractiveness of rail as an alternative, as will more attractive pricing packages from rail operators. Work already in hand on up-grading the West Coast Main Line will, for example, cut journey times between Manchester and Central London by half an hour, and between Glasgow and London by 45 minutes, and enable more frequent and reliable services. The completion of the new High-Speed Channel Tunnel Rail Link in 2007 will further enhance the competitiveness of rail for some journeys between London and Northern European cities (see box). Looking further ahead, there are plans for improvements to the East Coast Main Line, and the Strategic Rail Authority is considering the feasibility of proposals for a new high-speed North-South rail line.

Eurostar

Eurostar has provided an attractive alternative to short-haul air services to the continent. It has already secured some 60 per cent of the market on the London-Paris route, and 50 per cent on the London-Brussels route. There are at least a million fewer air passengers a year on these routes since the introduction of Eurostar and Shuttle rail services. The first phase of the Channel Tunnel Rail Link opened in September 2003. Completion in 2007 will see the fastest journey time between London and Paris cut to two and a quarter hours and between London and Brussels to two hours, making rail an even more attractive choice for these routes.

4.53 In bringing forward proposals for new airport capacity, operators will need to have regard, where appropriate, to the potential impact of new rail investment on demand for air travel. The introduction of high-speed rail lines in France has had a dramatic effect on domestic air services on individual short routes, although it has had a relatively modest effect on air traffic overall. For the UK, on specific routes, and particularly for city-centre to city-centre journeys, it might cause some reduction in service frequency or aircraft size. But for other long-distance journeys, including interlining (travel to connecting flights), rail is unlikely to be the most attractive choice. And for some parts of the UK, travel by air will remain the only realistic option.

4.54 New investment in rail capacity will see more long-distance journeys by rail. But the majority of this increase is expected to come through switching from car travel or as a result of new demand. Work undertaken by the Strategic Rail Authority suggests that the number of passengers switching from air to rail as a result of planned improvements to the West and East Coast Main Lines will be around 25 per cent from Manchester, ten to fifteen per cent from the North East, and less than five per cent from Scotland. These switches will be welcome, particularly during the next few years when runway capacity at the major London airports will be in short supply; but they are not expected to affect future passenger demand at the most crowded airports by more than a few percentage points.

Access to and from airports

4.55 Ensuring easy and reliable access for passengers, which minimises environmental, congestion and other local impacts, is a key factor in considering any proposal for new airport capacity. All such proposals must be accompanied by clear proposals on surface access which meet these criteria.

4.56 Increasing the proportion of passengers who get to airports by public transport can help reduce road congestion and air pollution. We expect airport operators to share this objective, and to demonstrate how they will achieve it in putting forward their proposals for developing new capacity.

4.57 Airports are part of our national transport infrastructure, and need to be planned and developed in that context. The Strategic Rail Authority and (for strategic roads within England) the Highways Agency will take full account of likely future airport development, and regional and local transport strategies should do the same.

4.58 The Government expects developers to pay the costs of up-grading or enhancing road, rail or other transport networks or services where these are needed to cope with additional passengers travelling to and from expanded or growing airports. Where the scheme has a wider range of beneficiaries, the Government, along with the devolved administrations, the Strategic Rail Authority, the Highways Agency and local authorities, will consider the need for additional public funding through their investment programmes on a case-by-case basis. Prospective developers should consult those bodies at an early stage in formulating their proposals. Further detail on this is given in Chapter 12.

4.59 Specific aspects of surface access to individual airports are covered in the following chapters, which set out our conclusions on the expansion of airport capacity across the countries and regions of the UK.

¹ An initiative of the European Commission, aimed at reducing delays by improving the performance of Europe's air traffic management system.

² 'Airport Security', a report by Sir John Wheeler published on 30 October 2002 - see Bibliography.

³ Excluding connecting traffic.

⁴ Designated for the purposes of regional aid under European Community Law.