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Stansted Airport: Expansion the Only Answer for the UK Economy

 

Essex, UK -- (SBWIRE) -- 03/21/2013 -- A recent copy of the London Evening Standard which was proclaiming that “only a brand new London Airport” is capable of reviving the UK’s economy for future generations. This whole debate is so important – Stansted Travel Services suggest that the UK needs to take a long hard look at the current provision of airports in the South east and ensure that we maximise the utility from each one.

A new, but famous and influential entrant into this debate is Norman Foster, Chairman and Founder of Foster + Partners, the architectural consultancy responsible for designing some of the world’s best designed airports including London Stansted, Hong Kong and Beijing. Foster believes that the time has come for London to have a new airport – we disagree – but Stansted Travel Services intend to highlight some key facets of their argument here and add their own responses to ensure that this article is a balanced debate about something that does have the potential for being one of the most influential economic projects in the South of England for over a generation.

Norman Foster states that Heathrow Airport has “grown from a series of compromises”. This is a fact Stansted Travel Services does not disagree with. Heathrow, with its five terminals huddled around its two runways, has simply run out of space, a bi-product of evolutionary growth over the past 50 years. With the demand for more air passenger traffic to rise significantly between now and 2030 [an estimated 260 million passengers per annum], Foster perhaps rightly believes that even a third runway will only enable Heathrow to retain its hub status for a further 15 years and service only an additional 15 million passengers per year. Add to this the fact that growing and emerging economies in the East and Latin America will see a rise in the demand for the larger Boeing 747s and A380s, the third runway couldn’t even handle these aircraft! Foster therefore believes that any talk of a third runway at Heathrow “would be a temporary fix”.

One of the recent options other than a third runway at Heathrow has been the idea of a new London Airport in the Thames estuary. The chance to build a purpose built, almost “future proof” airport hub away from London does offer some obvious benefits and according to Foster it would “address many of the issues associated with capacity, boost trade, and reassert Britain’s role as an international destination.” None of this can be denied; however the notion that a new airport with all of the necessary infrastructure needs can be built within a reasonable time frame seems almost fantasy to Stansted Travel Services – Heathrow has taken 50 years to get to where it is now – a new London hub airport with an injection of billions would take at least 10-15 years. How does this combat the problem of the UK economy losing £1.2bn per annum to our european competitors now? Foster thinks that a new hub would reverse this trend, by enabling the UK to build a new airport in the Thames estuary that would be able to open the doors to more aircraft movements to new and emerging markets. He also states that in addition to space, the new airport location would be many miles away from London, reduce pollution, see a reduction in noise, and result in aircraft movements occurring over the sea as opposed to over our capital city. The new location being proposed is the Isle of Grain, one of the least populated areas in the South East. Foster states that over 5000 people would be displaced with the third Heathrow runway, no such worries would exist on the Isle of Grain.

When you discount the conservation arguments for the new hub in the Thames Estuary, Foster believes that the onset of climate change has already damaged the ecology in the area and in any case, private finance could be used to repair much of this damage in a way far more proactive than the public purse ever could. So the argument for a new hub airport looks pretty strong, or does it?

Stansted Airport is London’s third airport and the UK’s fourth busiest. Stansted has seen its passenger’s numbers peak in 2007 with flows of 24 million per annum. The airport has capacity for 30 million yet in 2011 the total flows of passengers to the airport has dropped to 18 million. The new owners MAG want to see the numbers increase in 2013/14 to over 230 million once again which should be considered as a welcomed development.

There are a multitude of reasons for this decline, but the fact that the airport, previously owned by BAA, owes its function to the leisure market is key in understanding that Stansted will inevitably be more sensitive to the economic downturn of recent years than its two bigger sisters at Gatwick and Heathrow, where the lion share of business travel occurs. Stansted is however an airport with great ambition. Back in 2007 it looked as if the airport was being aligned to become the London’s new hub for the 21st century and I still believe it can be. When Norman Foster talks of an airport that is built well away from densely populated areas and has the capacity to expand aggressively to cater for the new emerging markets across the globe I always think that Stansted is the answer and yet many commentators on this issue just ignore it. Stansted Travel Services therefore asks why? Let’s briefly look at reasons why in their opinion Stansted could offer so much more than it already does:

1. Established airport but with significant capacity available in the short term [12 million at least]
2. Good transport links already in place, including rail and road
3. Surrounded by green belt
4. Located 35 minutes North of London, able to cater for other areas of the country too – not just London centric
5. Cost to improve and enlarge less than a new airport in the Thames estuary

Foster argues that it would only take 14 years to build a new hub airport in the Thames estruary with four runways. Stansted Travel Services consider this to be wholly optimistic when you already have airports within the South East that have spare capacity that could be extended in less time.

The case for Stansted expansion is sure to rear its head again – it has so much going for it and yet the current Coalition Government seem intent on “distracting” the electorate with this Thames estuary idea that is a non-starter before you lay any concrete.

Stansted has capacity, is well linked, and just needs the right level of investment to make it attractive to the bigger carriers [business] to make it a great success story. When you ask local business people, they too agree like a local Stansted taxi operator that responsible expansion would make sense at Stansted: “Stansted is well connected and with capacity to grow even with its current runway configuration. We of course would welcome expansion but not just in the no frills market, business and more established flag carriers, with the added capacity should be incentivised to operate from this airport too.”

The one aspect of Fosters’ argument that Stansted Travel Services totally agree with relates to his comments about the need for the UK to establish a transport infrastructure that is fit for purpose for the 21st century. Using his words, “for the first time the UK could position itself as a true hub for connecting global trade. In an expanding world economy, Britain could leapfrog the competition.”

To conclude therefore, the case for more capacity in the South East has been made and is accepted. What is not clear is a strategy for managing how that additional capacity is going to be met. Heathrow is full and Stansted Travel Services would agree with Foster that expanding Heathrow would only fulfill a short term strategy. Longer term though the travel agency cannot see why the Government would invest billions in a new airport when there is Stansted, only 75% full today and 35 minutes North of London, that could be sympathetically expanded to meet the needs of the UK economy for many years to come.

When you next catch a taxi to Stansted look at the potential there – you might just surprise yourself!

About Stansted Travel Services
Stansted Travel Services are a Stansted based travel agency and consultancy company specialising in group travel, tours, transport, and portal consultancy from and to London Stansted Airport. They are passionate about the airport and its contributions to the wider London economy.

Media Contact:
Sarah Walton
bookings@stanstedtravelservices.co.uk
Stansted, Essex
www.stanstedtravelservices.co.uk