Newsletter - February 2010

7th Edition

Chief Executive’s Welcome

Welcome to the new look BAR UK Newsletter.

For anyone who thought that this New Year might be a bit better than last year, then the start of it has put a dampener on things.

By far the biggest topic since I last wrote is that of aviation security, prompted by the serious incident as a result of the well-publicised attempted terrorist attack on Christmas Day.

Following on from that, the world’s fragile economies continue to create problems with airline financial results. Very much a case of carrying on in 2010 where 2009 left off.

Looking ahead, there is a general election by 3rd June at the latest. So, you may ask, how does that affect the airline industry? Very much is the answer!

An additional runway at Heathrow is, subject to strict environmental targets being met, in the policy of the current government. Should there be a change of government, then whichever opposition party is elected will have to affirm its agreement, something that is certainly not a foregone conclusion.

If nothing else, the aviation industry remains full of challenges!

Mike Carrivick

1. Air Travel security – recent changes

Security measures were the subject of urgent review, following the failed mid-air bombing attempt on an airliner travelling to Detroit on Christmas Day.

Two main features became readily apparent: a new method to get round known security procedures was used, and data that was known to some governmental intelligence agencies was not effectively shared.

The urgent review of the aviation security regime that quickly followed has resulted in UK security measures being changed. The changes have been publicised and will now include body scanners, the development of ‘no fly lists’ and a range of other measures that are not in the public domain.

Additionally, for flights operating into the USA, that country’s Transport Security Administration has mandated additional checks before departure from the overseas country.

Aviation security has the hard act of balancing security requirements on one hand and ensuring that the rigours of those requirements do not deter passengers from travelling.

BAR UK is working with the Department for Transport and the Home Office at very senior levels on all of these matters and getting its views known across a wide range of aspects.

2. Airport charges

Heathrow and Gatwick

To say that the airline community is disappointed with the owners of London Heathrow and London Gatwick airports is an understatement.

The prices at both are regulated by the CAA, meaning that there is a maximum (‘cap’) on charges. However, these airport operators are not obliged to increase to the cap. If there was ever a time when their airline customers should be treated as valued and to minimise price increases, it is now.

Unfortunately, true to form, they have gone for every penny they can get despite the risks of maximising costs not only to airlines, but also the travelling public. By doing so they also risk their own business by encouraging airlines in operating smaller aircraft or dropping services where feasible.

It will be most interesting to review matters towards the end of this year, when prices for 2011-12 are discussed.

Manchester

The Manchester Airports Group has demonstrated it is a lot more conscious that these are the toughest times airlines have ever faced. Although a decrease was sought by airlines, the airport’s prices for 2010-11 have been kept to a minimum.

Stansted

Its prices for 2010-11 are now not expected to be announced until later this month.

3. News from BAR UK

(a) Meeting with the Home Secretary

BAR UK had requested to meet the Home Secretary some time ago, and a meeting was duly held in late January. It was very timely, not least as the Home Office contributes significantly to aviation security policy.

The meeting therefore discussed aviation security in general, some of the specific measures arising out of the failed bombing attempt on Christmas Day and inter-departmental liaison with other parts of government. Another major point of discussion was e-Borders, data provision issues, EU legislative restrictions and how the project might develop in future years.

It was a very fruitful meeting and the Home Secretary was made aware of how BAR UK worked well, at several levels, with the UK Border Agency.

(b) New BAR UK directors

There were four vacancies arising out of staff moves and relocations and the Board is pleased to announce that three of them have been filled.

In line with the Articles of Association, they have co-opted the following:

  • Mr Henri Hourcade of Air France / KLM
  • Mrs Marianne Sammann of Lufthansa
  • Ms Sian Foster of Virgin Atlantic

The remaining vacant directorship is expected to be filled very shortly.

(c) People on the move - welcomes and farewells

Airline Welcome Farewell
Aegean Airlines Lily Alicabiotis (Ms)

(Amanda Blair)
Air Mauritius Anthony Cowles Pramod Gujadhur
Brussels Airlines To be advised Mark West
CityJet Laurent Petitmangin Alan Daniels
Finnair Jonathan Hughes Tomi Hanninen
Iberia Brian Thompson Angel Valdemoros
Japan Airlines Simon Salvi Robert Rigby
Tunis Air Aicha Mehiri (Mrs) Mohamed Toumi
Virgin Atlantic Sian Foster (Ms) Nigel Milton

(d) Next General Meeting

The next meeting is generously being hosted by Stephenson Harwood on:

  • 26th February 2010
  • 0930 for 1000
  • at their City offices

The final agenda will be circulated shortly.

4. Airport Regulation – Decisions arising from the consultation

This consultation, on how airports should be regulated in future, was complex and covered a lot of issues. The decisions arising from it have now been published by the Department for Transport. In brief, they are that:

  • the duties of the CAA should be reformed
  • an airport licensing regime, tiered in market dominance terms, should be introduced
  • passengers’ interests should be handled by Passenger Focus, and not by the Air Transport Users Council,
  • airport services should be aligned with passenger needs.

It now remains to be seen how these decisions may be transferred into practice, not least with some legislative changes required and an election that may affect that timescale.

BAR UK, in its response to the consultation, argued that airlines were not being seen as customers of the airports. The decisions now published enhance that concern.

The next BAR UK Newsletter will be published in April 2010

Up Arrow