Minutes of the External Advisory Group, 29 February 2008

Minutes of the External Advisory Group Meeting, Aviation White Paper, held on 29 February 2008 in Great Minister House.

Attendees: Jonathan Moor (Chair) - DfT, Nigel Milton - Virgin, John Parkinson - DfT, Jonathan Bailey - MAG, Victoria Mayo - DfT, Stuart Condie – BAA, Kat Bloom - DfT, Eddie Redfern - Charter Airlines Group, Helen McGill – DfT, Ken Crawford -  SE, Sarah Baxter - DfT, Nic Ferriday - FoE , Chola Mukanga - DfT, Mike Carrivick – BAR-UK
Paul Ellis- BA, Sarah Samuels - SDC, Danny Pedri - DHL, Tim Johnson – AEF, Owen Simon - CBI, Robert Siddall – AOA, Roger Wiltshire – BATA    
    

Apologies: Martin Capstick – DfT, Lucy Gordon – DfT, Jim Bailey – SASIG, Anna Mahoney – SASIG, Simon Evans - AUC

Introduction and Update on Progress

Jonathan Moor, DfT Director of Airports Strategy, welcomed everyone to the eleventh meeting of the External Advisory Group (EAG). He updated the Group on the significant progress in the aviation sector which had been achieved since the Group had last met, including: the lifting of the aviation security ‘One Bag’ rule for passengers travelling from UK airports; the completion of the ‘Adding Capacity at Heathrow Airport’ consultation; and the decision to de-designate Manchester Airport for price control.

Process for Heathrow Consultation Response Analysis

John Parkinson, Head of Airports Policy, outlined the key steps of the process for analysing responses to the consultation on ‘Adding Capacity at Heathrow Airport’ which had closed on 27 February. He explained that all the responses were being analysed by external contractors, Detica/IPSOS-MORI. A coding system was being used to group together answers of a similar nature. The process was not only about numbers, but was intended to give a balanced analysis of all the data which had been received. Jonathan Moor added that a report would be submitted to the Secretary of State after the data had been processed in order to provide her with the best possible evidence from which to make a policy decision on the expansion of Heathrow airport. Final policy decisions were expected later in 2008.

Aviation Duty Consultation

Helen McGill, DfT Aviation Environmental Division, gave a presentation on the Aviation Duty consultation which HM Treasury had published on 31 January. She highlighted that the consultation would close on 24 April, and the proposed duty would be implemented in November 2009. She briefly explained the basis of the proposed duty in terms of both aircraft factor used and distance travelled, and then discussed in further detail the scope of the duty, the treatment of freight and possible exemptions from the duty.

Some members were concerned about the impact of the proposed duty on the competitiveness of UK aviation. Extending the scope of the proposed duty, for example to freight aircraft, was of significant concern. Regarding the administration of the proposed duty, some members of the Group were against the proposal that airports should collect the tax. They felt this placed airports in a difficult position which contradicted the principle that airports were independent third party operators.

Some members of the Group agreed that the DfT had a responsibility to ensure that the UK remained competitive and that a more transparent policy was required regarding the duty, including clarification of the financial implications for industry.

Members of the Group were encouraged to set out their many views regarding the proposed duty and send them to the Treasury, so that all consultation responses could be considered by them. Helen McGill suggested that responses should be copied to the DfT to help inform the advice which the DfT could provide to the Treasury.

Air Transport White Paper Evaluation Strategy Implementation

Due to time restrictions, John Parkinson, suggested that a more detailed discussion of the Air Transport White Paper Evaluation Strategy should be scheduled for the Group's next meeting. He agreed to circulate the DfT's proposals on taking forward the Evaluation Strategy, including prioritising different aspects, and invited the Group to send their views to the DfT in the interim. He highlighted that this was a good opportunity for the Group to engage in the implementation of an ATWP commitment. The Group welcomed this idea and agreed to review the proposals and provide comments before the next meeting.

AOB

Jonathan Moor proposed that the next meeting should be in June and the agenda would cover the ATWP Evaluation Strategy and the NATS consultation on Terminal Control North Airspace Change Proposal about which some members had asked for more information.

Airports Policy Division,
April 2008