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Press Releases - 2011

CONSULTATION ON AIR PASSENGER DUTY A COMPLETE WASTE OF TIME

06 December 2011

The Board of Airline Representatives in the UK (BAR UK) has reacted with total dismay to HM Treasury’s long awaited response to consultation ‘Reform to Air Passenger Duty’.

Despite months of interaction with industry experts and having received 500 responses from a wide range of industry organisations and companies, the prime matters under review such as the banding system and premium economy rates have been left untouched. The end result is increased tax rates for all and no reforms whatsoever.

Mike Carrivick, chief executive of BAR UK said

“The Treasury has completely ignored the expert opinion of the aviation and travel industry and is digging its head in the sand over what it knows is a flawed tax.  Treasury has either deemed matters too complex or that changes would disadvantage others - in that case, why bother consulting?

“Change always has winners and losers but this result, doing nothing, just means increased taxes for everyone.

“Our 86 airline members are angry about the outcome. Immediate reactions are that a huge amount of money, time and effort has been spent in vain.

“'The excessive increases in APD continue to discriminate against air travellers and will provide the resolve for the industry to seek meaningful change.  BAR UK will continue work with other leaders to get change sooner than later. This chapter in APD may have closed for the moment, but it will not be the end of the story.”

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AIR PASSENGER DUTY ANNOUNCEMENT A HUGE BLOW TO UK BUSINESS

29 November 2011

The Board of Airline Representatives in the UK (BAR UK) has stated that the Chancellor's decision to increase Air Passenger Duty (APD) yet again, this time at double the rate of inflation, is a retrograde step for the UK economy and will be devastating for the travel industry.

Mike Carrivick, chief executive of BAR UK said

“Air travellers are being milked yet again and used as a soft target to prop up Treasury coffers. This announcement is completely at odds with the Chancellor's wish to invest in the transport infrastructure. No increase is justified, this action demonstrates the continued discrimination against air travellers.

In the interests of the economy, we urge him to listen to A Fair Tax on Flying campaign, of which BAR UK is a member, and immediately reverse his plans and not impose this double inflationary increase in the next Budget.”

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LABOUR U-TURN ON HEATHROW THIRD RUNWAY DISMAYS AIRLINES

31 October 2011

The Board of Airline Representatives in the UK (BAR UK) says it is in total dismay at the lack of planning and consistency being shown by all three main political parties in response to today's announcement that the possibility of a third runway at Heathrow has now been removed from Labour's agenda. The statement was advised by Maria Eagle, the Shadow Transport Secretary, at the Airport Operators Association (AOA) conference.

Mike Carrivick, BAR UK chief executive, said

"The decision of the Labour Party to withdraw support for a third runway at Heathrow is not just a massive policy u-turn but strongly suggests that politics are now deliberately obstructive to supporting UK business and driving economic growth. All three main political parties are guilty of being indecisive and now have a duty to rapidly formulate an alternative and progressive aviation policy."

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BCC's Aviation Report receives strong support from BAR UK

31 October 2011

In full support of today's aviation report issued by the British Chambers of Commerce (BCC), The Board of Airline Representatives in the UK (BAR UK) urges the Secretary of State for Transport to action the findings of the BCC report in formulating its aviation policy.

BAR UK, which represents 86 airlines, is in total agreement with report findings, which highlight the growing lack of UK connectivity, and the need to act sooner rather than later in order to provide the structure for sustainable aviation and economic growth.

Mike Carrivick, BAR UK chief executive, said

"The BCC report illustrates just how vital air transport is for the economic recovery of the UK. The business world is being held back by the lack of capacity to serve new and existing destinations by air, and is justifiably concerned that new and emerging markets will be lost to competing economies."

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LAST CHANCE FOR UK AVIATION

19 October 2011

In its response to the DfT’s consultation ‘Developing a sustainable framework for UK aviation’ The Board of Airline Representatives in the UK (BAR UK) is explicit that the lack of a clear aviation policy is damaging to the UK and its economic recovery.

BAR UK, which represents 86 airlines, has warned that the consultation, which closes for submissions on 20 October, is the last chance for the Government to devise and implement the visionary aviation policy the UK needs to remain competitive internationally. 

In its opening remarks BAR UK states that the lack of clarity is causing two primary impacts; imposing barriers on making firm and objective business decisions about future air services to the UK, and indicating to the rest of the world that key UK trading infrastructure is going to remain full for several years ahead.

The response also demonstrates the significant value of aviation to the UK economy, including the continuing importance of London, the crucial role of hub airports and their growing success abroad, as well as the economic value of transfer passengers and the commercial and operational importance of early morning and late evening flights.

Mike Carrivick, BAR UK chief executive, said

“The ditching of the previous administration's aviation policy has effectively banned any new runways at the three largest London airports and set back the economic role of aviation by over 10 years.”

“The UK can only maintain one hub airport and for the foreseeable future that has to remain as Heathrow. It's our aim to show that whilst the UK dithers, other countries are grasping the economic opportunities offered by the lack of key hub airport capacity where it matters - London.”

“That's the core issue that needs urgent action. Anything else would simply be tackling the fringes and ignoring the key problem yet again. If Heathrow expansion is off the menu, then what, where and when is the viable alternative, and who pays?”

The BAR UK full submission, including member survey results, can be downloaded at http://www.bar-uk.org/consultations/consultations.htm

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Airlines say proposed ‘Heathwick’ rail link is no solution

10 October 2011

A proposal for a new fast rail line linking Heathrow and Gatwick has been greeted with scepticism by airlines says BAR UK.

The costly and lengthy development, termed ‘Heathwick’, offers no solution to the urgent need for additional airport capacity in the South East according to the Board of Airline Representatives in the UK (BAR UK) which represents 86 airlines.

Mike Carrivick, BAR UK chief executive, said

“Linking Heathrow and Gatwick by rail does not create a viable hub airport and flight connecting times would not be competitive with other airports. We do not see how the estimated £5 billion can be justified, even if paid for by others. Building an aviation policy around this concept is misguided and if airlines and airports believed a rail link could work it would have had their support years ago.”

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Airlines extremely concerned over Heathrow limitations

05 October 2011

A survey of 86 member airlines by The Board of Airline Representatives in the UK (BAR UK) concludes that airlines share escalating concerns about their ability to operate effectively from Heathrow as result of capacity constraints and high taxation.

The responses showed that 86% of the airlines would seek additional frequencies if slots were available, and 88% considered that the UK economy was being damaged as a result of excessive taxation and capacity restrictions imposed by the Government.

The threat of increased taxes in the form of APD and the EU Emissions Trading Scheme (EU ETS) was cited as having a critical impact on profitability by 46% of airlines, with a further 42% indicating a significant impact.

Mike Carrivick, BAR UK chief executive, said

“BAR UK will be incorporating the views of its members in its response to a scoping document by the DfT on the future aviation policy. It is extremely concerning that any new aviation policy is not expected to be announced until 2013 and yet the issues have been constantly highlighted to the Government and painfully obvious to the industry for years. Foreign airlines have the choice of whether to operate their aircraft to the UK, but the survey has shown that additional flights that might have been operated to this country are under consideration to go elsewhere. Aviation is vital to the economic prosperity of the UK and another opportunity must not be lost in finally achieving the visionary aviation policy decisions this country urgently needs.”

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Airlines Claim Northern Ireland Tax Reduction is Admission of Failure

27 September 2011

The Board of Airline Representatives in the UK (BAR UK), representing 86 airlines, welcomed the Chancellor’s announcement that APD will be cut on direct trans-Atlantic flights from Belfast from 01 November, but claimed that his decision is seen as an admission that high levels of taxation are impeding economic recovery.

BAR UK urges the Government not to restrict reductions to just one part of the UK but to implement fair taxation for everybody.

Mike Carrivick, BAR UK Chief Executive, said

"Any planned increases should be binned and APD further reduced by at least the level of income from the EU Emissions Trading Scheme".

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Airlines fight back over ATOL reform proposals

13 September 2011

The Board of Airline Representatives in the UK (BAR UK) has presented strong concerns to the Dft over the ATOL Reform Consultation which closes on 15 September.

In its detailed submission on behalf of 86 member airlines, BAR UK cites three main areas where the proposals are wholly inadequate in achieving the objectives of the reforms.

The following have been identified where;

1. ATOL funds could be collected twice but still no protection would apply
2. The ‘Right to Fly providers’ proposals would make it extremely difficult for consumers to know whether sales outlets and specific products are actually covered by ATOL or not. Airlines would also be made to carry the burden as the insurer of last resort, not the ATOL scheme
3. The ‘Flight Plus’ proposals would add more confusion, since the ATOL protection only applies if the consumer books both the flight and ground products within three days of each other from the same supplier. There is no protection where bookings are made over a longer period of time
   

Mike Carrivick, Chief Executive, BAR UK said

“There is a lack of clarity over consumer protection that needs addressing; however the proposed reforms fail to meet the objectives set out in the consultation. They add confusion rather than take it away.”

“BAR UK proposes that ATOL protection continues to apply to fully-packaged travel and specifically excludes everything else. The consumer can then make their own decision on purchasing insurance when not covered by an ATOL protected package. In any event, many consumers are protected through the use of credit cards, so why pay for something twice?”

“We support others in the industry who are also aghast at these reforms and urge the DfT to postpone any changes to the current ATOL regime and completely review the proposals.”

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South East Airports Taskforce

Report’s proposals ‘add robustness’ says BAR UK

14 July 2011

The Board of Airline Representatives in the UK (BAR UK) welcomed today's report by the South East Airports Taskforce, as adding robustness, despite not providing a proper solution to the chronic lack of airport capacity in London and South East England.

The eagerly awaited report contains proposals to allow ‘operational freedoms’ for more flexible use of runway capacity at times of operational needs, and a move to an outcome-focused, risk-based approach to aviation security.

Mike Carrivick, Chief Executive BAR UK, said

"The proposal to allow greater flexibility of runway capacity during times of disruption will hopefully go a long way to enhancing the limited operational robustness of Heathrow".

"Our airline members look forward to the phased trials which will take place to demonstrate the benefits. These should include far less aircraft 'holding' resulting in much improved punctuality, fewer delays and reduced emissions. The same outlook prevails with the proposed flexibility to meeting the needs of the aviation security programme".

"The report also covers work in progress with the UK Border Agency which remains an area of great concern to airlines. BAR UK is highly supportive of the UK Border Agency (UKBA) but believes it has not been provided with adequate resources to achieve important objectives on schedule".

"Whilst we reiterate our support for the outcomes of this Taskforce, the proposals do not address the airport capacity needed to maintain the UK competitive edge in aviation, and the economy in general".

The report can be viewed at:

http://www.dft.gov.uk/news/press-releases/dft-press-20110714

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“APD still flawed despite no immediate increases” says BAR UK

Nil increases in Budget do not counter an unfair tax

23 March 2011

The Board of Airline Representatives in the UK (BAR UK), representing 86 airlines, has welcomed the Chancellors decision to delay any increase to aviation taxes until 2012 following consultation but states that the Government is still not listening to the industry’s calls for a fairer tax.

Mike Carrivick, Chief Executive, said

“The Chancellor’s decision not to increase APD is a welcome development but does not go far enough. The UK travel industry already pays the highest aviation taxes in Europe and the existing APD levels do not take into account the EU Emissions Trading Scheme (EU ETS) which airlines will pay into from January 2012. Other EU countries have reduced or are removing existing taxes prior to the introduction of EU ETS.”

He added

“For air travellers to pay twice is wholly unjustified. Collectively, these taxes run contrary to the Government’s intention to increase tourism into the UK and will deter many of those wishing to visit the UK for the Olympics and Paralympics in 2012.

This unfair tax will further erode the tourism industries of countries abroad, many of which are in developing nations.”

BAR UK is calling on the Chancellor, for the good of the country and the economy, to reduce APD levels once the EU ETS comes into effect.

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Response to Heathrow Snow Enquiry

“Snow enquiry report a positive way forward” says BAR UK

Report findings provide a clear and concise action plan

24 March 2011

The Board of Airline Representatives in the UK (BAR UK), representing 86 airlines, has welcomed today’s publication of the report by Professor David Begg into the disruption incurred by passengers and airlines at Heathrow last December.

Mike Carrivick, Chief Executive said

“The recommendations follow closely the submissions made from many stakeholders, including BAR UK, who were the first witnesses alongside the Airline Operators’ Committee.

The report demonstrates very well how cumulative adverse effects rapidly build up when plans are either inadequate, or poorly implemented. In this case those local effects resounded globally and were damaging to the reputation of the entire UK aviation industry.”

Carrivick added

“The aspects of passenger care are noted and during our discussions with both BAA and the CAA we concluded that temporary closures of terminal buildings allied to the sheer numbers prevented many passengers being attended to in the manner required under Regulation EU261. Looking ahead, BAR UK looks forward to contributing to the airport and airline co-operation that will be required to drastically improve any similar disruption in the future.”

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“Hands off airline timetables” says BAR UK

Proposals for others to set emergency airline timetables are not the answer

15 March 2011

The Board of Airline Representatives in the UK (BAR UK), representing 86 airlines, has expressed its surprise and dismay at proposals to impose emergency timetables on airlines as a means to handle extreme weather or exceptional situations.

The idea was aired by BAA's CEO, Colin Matthews at last week's hearing of the Transport Select Committee. The concept was again referred to by Secretary of State for Transport, Mr Philip Hammond, during his address to the same Committee on Monday.

Mike Carrivick, Chief Executive of BAR UK said

“The idea to impose emergency airline timetables appears to be a knee-jerk reaction to take the heat off the airport operator during the enquiry into the December snow crisis and has not even been discussed with the airlines”. He added “Airlines and passengers were heeding the advice given out by the airport only to find that facts and timings kept changing, which led to passengers continuing to arrive at the airport with nowhere to go. An emergency timetable would not have worked, since the airport operator had simply no idea what would open and when. So, why should they be in a position to dictate schedules to individual airlines when they can’t get their own act together?”

BAR UK recognises the fact that capacity is always restricted during extreme events. However, only the airlines are fully aware of the required information to make the most effective scheduling decisions such as aircraft and crew availability and passenger loads. The airport must provide airlines with accurate information.

Carrivick went on to say

“'It would be very perverse if the airport operator, responsible for the mismanaged airport closures in December, was arbiter of who could or could not fly. Let’s keep to the established system of the airlines setting the timetables and the airport operators efficiently managing operations.”

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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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