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Press Releases - 2010

BAR UK Repeats Call for Urgent Review of EU Airline Regulation 261/2004

(Denied Boarding)

24 December 2010 – Issue 09

The Board of Airline Representatives in the UK (BAR UK), representing almost 90 airlines, again calls on the UK Government to tackle the EU Commission over the misapplication of the Denied Boarding Regulation 261/2004 in light of the recent closure of Heathrow due to the adverse weather conditions.

The closure and subsequent 30% restriction in flight movements, at a time of maximum demand, created havoc for passengers and airlines.

Despite the airport operator admitting not having enough resources to handle the situation, it is the airlines who are again being made to pick up the huge and unwarranted costs of the chaos through the application of EU Regulation 261/2004, which was never intended for such a scenario.

Mike Carrivick, BAR UK Chief Executive, said:

"The recent Heathrow closure and restrictions created an operational nightmare. Literally hundreds of thousands of passengers had to be handled at a time when nobody, not even the airport operator, knew what was going on and which flights could operate.

Yet, despite being the innocent party, the costs and penalties of airport closures fall on the airlines, even when the airport operator admits its own shortcomings.

Invoking this Regulation each time force majeure events occur is not in anybody's interests, and the ultimate cash flow drain it brings will create its own failures.

BAR UK calls for the Regulation to be suspended during widespread force majeure events.

We also call on the CAA to understand the sheer scale of issues that assailed the airlines through the closure of Heathrow, and to withdraw from publicly castigating them for not being in compliance with the Regulation.

Instead, the CAA should look at the role of the airport operator and the sanctions that might apply should they fail in their obligations."

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Air tax increase already hitting airlines hard.

BAR UK slates latest Air Passenger Duty rates as damaging and unjustified.

29 October 2010 – Issue 08

The Board of Airline Representatives in the UK (BAR UK) reports that its airline members are already experiencing negative impacts from the extortionate Air Passenger Duty increases coming into force Monday 1st November.  BAR UK claims that the increases are proving to be indiscriminate, not only to UK residents but also to visitors to the UK. This will impact the UK economy since they will be deterred from visiting and encouraged to go elsewhere.

Mike Carrivick, Chief Executive of BAR UK said

“The effect of the increases on destinations such as the Caribbean have now reached the point where it is the equivalent of a family group paying for four tickets but only receiving three.”

He continued:

“BAR UK has campaigned tirelessly against these excessive and unfair taxes. Air passengers are being discriminated against and the economy will suffer. BAR UK is calling on the Treasury not to implement any further increases since the airline industry and its customers cannot afford the international competitiveness of the UK to slide any further.”

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CONCERNS RAISED OVER SPEED OF PLANS FOR NEW AVIATION POLICY

BAR UK requests greater urgency from the Secretary of State for Transport

26 October 2010 – Issue 07

The Secretary of State for Transport’s intention to develop an aviation policy is welcomed by BAR UK but serious concerns remain about the time scales involved in reaching fundamental decisions.

In a speech to the Airport Operators’ Association (AOA) annual conference the Rt Hon Philip Hammond MP stated that the DfT will issue a scoping document in the new year, setting out a range of questions, after which a draft policy document for formal consultation will be issued in early 2012.

Mike Carrivick, Chief Executive BAR UK said

“Right now, there is a huge policy vacuum regarding aviation in the UK. The decision to ban any new runway capacity in South East England requires a policy that sets out alternative government objectives and strategies; right now there is none.

Whilst the intention to devise a new policy is to be welcomed, BAR UK has serious concerns that the planned time scales involved do nothing to address the urgency of the situation. By the time that this consultation is planned to be published, responded to and decisions made, it could take another three years.

Meanwhile, airlines are already taking a hard look at how difficult it can be to trade in the UK and are assessing alternative plans. This week, Air Asia X was reported to be dropping plans to serve Manchester because of APD increases. Another airline is reviewing its commitment to the UK since it is unable to get all the slots it needs for a viable service to Heathrow.

This is bad for UK plc and demonstrates why BAR UK calls for a speedier policy-making process.”

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BAR UK continues to lobby against damaging air tax policy

Budget announcement keeps threat of per-plane tax alive

22 June 2010 – Issue 06

The Board of Airline Representatives in the UK (BAR UK) claims that the failure of the Coalition Government to rule out the proposed per-plane tax (PPT) in today’s budget shows that they do not have an effective plan for the industry and that the planned tax will fail its environmental and economic objectives and drive trade and tourism to competing countries.

Mike Carrivick, Chief Executive of BAR UK said

“A per-plane tax (PPT) would place an excessive burden on the UK’s vital aviation industry and is completely out of touch with the country’s urgent need of visionary policies that meet business and environmental objectives in the decades to come.

PPT is not a new idea; the budget announcement completely disregards the industry consultation responses to similar proposals made by the last government. Huge market distortions will be created, emissions would increase and Treasury’s own revenues would decrease, so failing Government’s two key objectives with this tax.

The PPT would lead to the destruction of the UK’s long-standing position as the leading global transportation hub. This government needs to finally recognise the huge social and economic value that hub airports bring and the current policies are a contradiction with government’s own aspirations to trade our way out of national debt.

The combined effects of aviation tax policies and the ban on any new runways in South East England will be so great that travellers will be encouraged to by-pass the UK and give their business to the fast-developing hubs elsewhere in Europe and the Middle East, resulting in more connecting flights and additional emissions. The Treasury will stand to lose millions as a result of projected passenger and cargo growth moving to neighbouring countries.

In addition, the Government’s refusal to remove the existing Air Passenger Duty (APD), or PPT, with the introduction of the EU Emissions Trading Scheme (EU ETS) in 2012 means that the UK will be double taxed on aviation. Air travellers will be taxed at such exorbitant levels that UK residents will be priced out of flying and overseas visitors will choose to visit other countries instead, resulting in further damage to the UK’s global aviation position.”

BAR UK seeks to work with government but will continue to lobby for fairness in taxation and challenge their lack of commitment to the aviation industry, which is a key driver to the economic prosperity of this country.

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BAR UK Calls for Urgent Review of EU Airline Regulations

21 April 2010 - Issue 05

The Board of Airline Representatives in the UK (BAR UK), representing over 90 airlines, has called on the UK government to tackle the EU Commission over unfair EU Regulations against member state airlines.

Mike Carrivick, Chief Executive, said:

“The eagerness of the EU and the UK government to publicly state that airlines have a responsibility under EU Regulation EU261/2004, to accommodate and feed passengers booked on flights cancelled by the volcanic disruptions, is a misuse of the regulation.

Regulation EU261/2004 was intended to apply when airlines had individual delays or cancelled flights. It was never intended to apply to wholesale shutdown of the airways system imposed by governmental rulings and without any limitation of time. It is also relevant that airlines cannot immediately resume normal services from the moment that the airspace restrictions are lifted. This Regulation, when used in this way, is draconian, disproportionate and often impractical.

In this particular situation, passengers have in all probability been delayed a lot longer than they might have been and airlines have lost millions every day as a result.”

BAR UK calls for an urgent reassessment of the implementation of this Regulation now and in the future. Not to change anything would be a huge disservice to everybody.

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BAR UK Welcomes Re-start of Airline Operations

21 April 2010 - Issue 04

The Board of Airline Representatives in the UK (BAR UK), representing over 90 airlines, has welcomed the decision by the relevant authorities to re-open significant areas of UK airspace, particularly Southern England where the UK's busiest airports are located.

Mike Carrivick, Chief Executive, said:

"Safety is understandably the number one priority for everyone and our member airlines recognise the cooperation that took place between NATS, CAA and the Department for Transport (DfT) that enabled the re-opening of UK airspace. A number of airlines have been proactively supporting the required research providing test flight data in order to get their customers flying again. Whilst a review of the length of closure endured is certain to take place and important lessons will surely be learned, our priority must be to ensure a rapid return to full service levels as soon as possible."

BAR UK is fully supporting the authorities with the significant task of restarting airline operations.

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BAR UK Blasts Main Parties Manifestos

13 April 2010 - Issue 03

The Board of Airline Representatives in the UK (BAR UK), representing over 90 airlines, has strongly criticised the transport policies in the election manifestos of all three main political parties as failing to meet the country’s aviation needs.

Mike Carrivick, Chief Executive said

“The airline industry feels let down by the manifestos of the main political parties in their lack of vision and commitment in addressing the air travel needs of the UK public, industry and the economy. The global competitiveness of the UK is at stake through isolated policies attempting to tax or restrict what is a global industry. Taxation alone can never deliver the benefits that the UK public and industry are demanding.”

The BAR UK board declares that the incumbent government is determined to maintain and increase the exorbitant levels of Air Passenger Duty that affect the UK and visitors alike.

The Conservatives and the Liberal Democrats both seek to deny additional runway capacity not only at Heathrow, but also at Gatwick and Stansted. Such policies are no remedy to aircraft stacking over the Home Counties, are highly detrimental to the industry’s efforts to reduce emissions and deny access to global markets for those elsewhere in the UK.

Both these Parties also plan to impose a tax per plane but, significantly, have not stated how this will be structured. The Labour Government had previously failed when they planned the same thing.

Either way, all three main Parties discriminate against flying rather than planning long term solutions for a vital industry.

BAR UK today outlined its five key requirements on aviation for the next Government;

1. To recognise that a third runway at Heathrow is a priority for the UK economy and that this expansion is not funded by the Government. It is required to resist the increasing threat to jobs and the economy from competing hub airports in other countries.

2. To embrace the White Paper and the Civil Aviation Bill ‘The Future of Air Transport’, that was published in 2003 at immense cost, as the template for the industry for the next 30 years and to refrain from piecemeal tampering and short term measures.

3. To reduce Air Passenger Duty (APD) with immediate effect and to completely abolish APD once the EU Emissions Trading Scheme (ETS) commences in 2012.

4. To acknowledge that aviation is a relatively low emitter, contributing just 2.5% of global carbon emissions, and assist an already proactive industry with research and technology incentives to reward further efficiency gains.

5. To proactively seek to bring forward planned improvements in European airspace management which is where the quickest and most significant reductions in carbon emissions can be achieved.

BAR UK continues to lobby the political parties upon the importance of effective, integrated and fair transportation policies.

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BAR UK Claims Government ‘Own Goal’
Over Air Passenger Duty

24 March 2010 – Issue 02

The Board of Airline Representatives in the UK (BAR UK), representing over 90 airlines, has expressed disappointment that the Government has missed an opportunity to change its plans on Air Passenger Duty (APD).

Mike Carrivick, Chief Executive said

“By proceeding with the tax hikes in November, the Chancellor has missed his golden opportunity to rectify the wrongs of APD.

The exorbitant levels of APD will continue to make travel too expensive for so many, not least those who fly to visit friends and relatives, or children, who will continue to be taxed at the adult rate.

Bargain-savvy travellers have already identified that flights may be cheaper by using airports outside of the UK. Ultimately, more emissions would be created and the Treasury would be responsible for reducing its own APD revenues. What an ‘own goal’ that would achieve”.

BAR UK continues its campaign for fairness and transparency in taxation and to protect the interests of UK aviation.

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BAR UK appoints two new board members

12 January 2010 – Issue 01

The Board of Airline Representatives in the UK (BAR UK), representing 93 airlines, announces changes to its board.

Mr James Forster, British Airways, has been appointed as Vice Chair. He is succeeding Mr Nigel Milton, Virgin Atlantic Airways, who is leaving the airline.

Mr Richard Midgley, South African Airways, has been appointed as Treasurer following the retirement of Mr Barry Prior of Estonian Air.

Mike Carrivick, Chief Executive said

“We express our gratitude to Nigel and Barry for their contribution and we welcome the expertise of James and Richard as we continue to ensure that the aviation industry is given its due prominence.”

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Images of Mr James Forster and Mr Richard Midgley are available on request.

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Notes to Editors

BAR UK represents over 85 scheduled airlines in the UK in their dealings with Government, Government Departments, Regulators and Airport Operators.

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