CONNECTING BRITAIN TO THE FUTURE. FASTER - Gatwick's Case for a Second Runway July 2014 - Gatwick ...
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CONNECTING BRITAIN
TO THE FUTURE.
FASTER.
Gatwick’s Case for a Second Runway July 2014
01
contents//
connecting Britain to the future. faster. summary 04
Our vision to connect the UK to the world 06
Our commitments to deliver the best airport in the UK 08
THE TRANSFORMATION OF AVIATION 10
Connecting Britain to A changing world 12
Our commitments
01. A new runway by 2025 at half the cost and much less risk 16
02. A stronger platform for economic growth 20
03. More competition, innovation and lower airfares 24
04. Greater economic boost FOR THE UK 26
05. Connecting the UK regions to the world 32
06. Best passenger experience 34
07. Most efficient and low cost operation for airlines 38
08. Excellent transport links 42
09. Minimised environmental impact 50
10. Our pledges for the local community 52
Conclusion 60
03
Connecting Britain to the Future. Faster.//
Summary
The UK is one of the best connected Two world class airports THE BEST DECISION FOR UK PLC
countries in the world. But aviation
Major global cities – New York, Paris Expansion at Gatwick will deliver around
is undergoing a transformation.
and Tokyo - have networks of airports. £90 billion of economic benefit and create
Aircraft can now fly longer distances They do not rely on a single mega- around 120,000 jobs across the UK.
direct. Fewer passengers will need hub. Mega-hubs tend to be based in Expansion at Gatwick will deliver balanced
smaller cities – Dubai, Amsterdam and growth for London - and South London in
to transfer. The aircraft orders
Atlanta - that are less significant global particular - rather than simply overheat
of today are shaping the future. destinations and have smaller populations. one part of the Capital.
This puts a premium on the UK It is not a question of hub or no hub
having a new aviation solution but whether we need a mega-hub.
for the challenges of tomorrow.
London’s position today derives from the
strength of its airport system as a whole.
GATWICK’S VISION This is the model that can best serve the
London of the future. Two world class
Gatwick’s vision is of two world class airports, different but complementary, will
airports in London helping to connect the together help deliver the connectivity and
country to the rest of the world. We want to economic growth that the country needs THE AIRPORTS COMMISSION
see Gatwick grow, and Heathrow improve. – with much lower environmental impact.
In 2012, the Government established the
As connections to emerging markets DELIVERABLE AND FUTURE-PROOF independent Airports Commission, led by
become more important, and the UK’s Sir Howard Davies. The Commission is
core European markets continue to An extra runway at Gatwick will deliver examining the nature, scale and timing
grow, we need a network of airports, flights from London’s airports to 440 of any requirement for additional capacity
enabling London to function as a destinations - significantly more than to maintain the UK’s position as Europe’s
true global city and our economy expansion at Heathrow. This extra most important aviation hub.
and tourism to thrive as a result. capacity will enable the UK to fly to
more destinations . Greater competition In December 2013, the Airports
This is the first time in many decades will mean a better service and cheaper Commission published its Interim
that expansion at Gatwick can be fares for passengers. Gatwick will offer Report. In this report, Sir Howard Davies
considered as it has been ruled out for great connections across the UK, good concluded that “there is a clear case for
40 years under previous governments. transport links and a new airport designed one net additional runway in London and
Competition and liberalisation have been for smooth and enjoyable journeys. the South East, to come into operation
at the heart of the UK’s aviation success. by 2030”. The Commission has short
The UK now has the opportunity to plan Gatwick can deliver a second runway listed Gatwick and Heathrow as options
for the next chapter in this success story by 2025 at no additional cost to the for the location of a new runway.
that can give passengers choice and the taxpayer. An extra runway at Heathrow
UK the economic growth we need at an would cost more than twice as much, be The Commission will make its final
environmental cost that we can afford. part-funded by the taxpayer, and involve recommendations after the General
tunnelling the M25 and introducing a road Election in 2015.
congestion charge at the airport.
04 CONNECTING BRITAIN TO THE FUTURE. FASTER.
Two World
Class Airports
in London will
help the UK
economy grow
05
our vision//
to connect the uk
to the world
Our vision is of a thriving UK Our vision for UK
economy supported by two world economic growth
class airports in London.
»» Gatwick expansion will create
around 120,000 jobs for the UK
»» Gatwick expansion will deliver
around £90 billion of economic
benefits to the UK
»» Gatwick expansion will enhance
regional connectivity, with links
to 15 UK airports
»» Gatwick will enable Olympic-
scale regeneration for South
London and the South East
»» Gatwick expansion will increase
visitor numbers to the UK
»» Gatwick expansion will see
much lower airline charges
than Heathrow, making travel
cheaper for passengers.
06 CONNECTING BRITAIN TO THE FUTURE. FASTER.
Our vision for a Our vision for Our vision for the
world class airport world class future of aviation
passenger service
»» Gatwick expansion will see a new »» Gatwick expansion will deliver more »» Gatwick expansion will enable the UK
state-of-the-art airport designed choice for airlines and passengers, to fly direct to more global destinations
by world-class architects with London serving 440 destinations
across the globe by 2050 »» Gatwick expansion will suit all types
»» Gatwick will deliver the most of airline due to lower airport charges
efficient, lowest cost, most »» Gatwick expansion and transport and greater efficiency
competitive expansion option upgrades will deliver the best rail
for London connections of any airport in the »» Gatwick expansion will deliver
UK with trains to Central London around 5,000 additional weekly
»» Gatwick expansion can be every two and a half minutes flights by 2050
delivered by 2025 at least
risk and no additional cost »» Gatwick expansion will deliver »» Gatwick expansion will generate
to the taxpayer much shorter journey times through more direct connections than
the airport than Heathrow any other option
»» Gatwick expansion will deliver
260,000 more flights per »» Gatwick expansion will continue its »» Gatwick expansion is best suited
year compared to our estimate current transformation under new to current aircraft order books
of only 190,000 more with ownership – Gatwick is already flying and market trends.
expansion at Heathrow to more destinations with a wider range
of airlines than any other UK airport.
»» Gatwick expansion will minimize
environmental impacts such as
noise, and London as a whole
will become more resilient.
07
our COMMITMENTS//
TO DELIVER THE BEST
AIRPORT IN THE UK
Our commitment is to grow the UK
economy by delivering the most efficient
and competitive airport in London:
A NEW RUNWAY BY 2025 AT HALF CONNECTING THE UK REGIONS MINIMISED ENVIRONMENTAL IMPACT
THE COST AND MUCH LESS RISK TO THE WORLD
Expansion at Gatwick rather than Heathrow
The cost of building the second runway Gatwick expansion will create capacity will see hundreds of thousands fewer
at Gatwick is £7.8 billion compared with for more regional flights, connect people affected and significantly lower
Heathrow’s £15.6 billion. Unlike Heathrow, 15 UK airports to Gatwick and support environmental impacts. We will continue
growth at Gatwick will not require any incentives and competitive charges to meet all noise and air quality standards,
additional taxpayers’ money. for increased regional services. deliver 60% public transport use by 2040
and aim to build a carbon neutral airport.
A STRONGER PLATFORM BEST PASSENGER EXPERIENCE
FOR ECONOMIC GROWTH OUR PLEDGES FOR THE
Gatwick expansion will deliver a modern, LOCAL COMMUNITY
Gatwick expansion will deliver around world class airport designed to make the
£90 billion of economic benefits to the UK, passenger journey simple and efficient. Gatwick expansion will offer a compensation
much higher than expansion at Heathrow, Quality will be central, with access to package, unmatched by Heathrow, of a 25%
because it will generate more traffic and aircraft in less than 30 minutes and premium on top of market value for
more connections to new destinations. a minimum connection time between homeowners directly affected, a £5,000
aircrafts of under 45 minutes. infrastructure contribution towards every
extra home that is built as a result of airport
MORE COMPETITION, INNOVATION expansion and, uniquely, £1,000 per year
AND LOWER AIRFARES MOST EFFICIENT AND LOW COST contribution to council tax for local residents
OPERATION FOR AIRLINES affected by noise.
Gatwick expansion will deliver two world
class airports serving London and the UK, Gatwick expansion will deliver a world
delivering more competition between both class service for airlines, with efficient
airports and within airlines, which will keep turnaround and taxi times, more
airfares lower. resilient designs for the future and low
charges at £12 -£15 per passenger.
GREATER ECONOMIC
BOOST FOR THE UK EXCELLENT TRANSPORT LINKS
Gatwick expansion will create around Gatwick expansion and dramatic
120,000 jobs. Gatwick will fund a £50 improvements in transport connections
million housing and jobs programme will mean that 15 million people in the
to enable local authorities to deliver UK will live within 60 minutes of Gatwick.
essential local community infrastructure Trains to London will run every two and
and ensure local young people directly a half minutes, and capacity will be
benefit from the new jobs being created. doubled at local road junctions by 2025.
08 CONNECTING BRITAIN TO THE FUTURE. FASTER.
MORE COMPETITION
MORE CHOICE
LOWER FARES
Gatwick image
09
THE transformation of aviation//
THE UK IS ONE OF THE BEST CONNECTED AVIATION IS UNDERGOING A TRANSFORMATION
COUNTRIES IN THE WORLD
»» Better regulation, new aircraft
»» London is the world’s biggest aviation technologies, increasing competition
market and the best connected city and innovation are reshaping aviation
in the world, flying to over 360
destinations - Paris serves around 300 »» Low cost carriers account for over
destinations and Frankfurt around 250 50% of the UK short haul market
and they are now expanding into
»» The UK is the third largest aviation the business sector and the medium
network in the world - 75% of Fortune and long haul markets
500 companies have offices in London
»» easyJet carries more passengers
»» The number of passengers using non- than any other UK airline
London UK airports has increased by
over a third since 2000. »» Dubai is now the busiest international
airport in the world
AVIATION IS IMPORTANT FOR THE UK ECONOMY
»» New ‘hub-buster’ aircraft are able
»» Aviation supports around a million to fly people further and at less cost
jobs in the UK than ever before, reducing the need
to transfer between flights.
»» Aviation delivers £50 billion to the UK
economy and £8 billion in tax revenues
»» Aviation infrastructure and connectivity
are key enablers for economic growth
»» The cost to the wider economy
of failing to address the demand
for growth could amount to
£30-45 billion over 60 years.
10 CONNECTING BRITAIN TO THE FUTURE. FASTER.UK AVIATION DELIVERS
LONDON IS Low Cost Carriers
account for over
£50Bn
THE BEST
CONNECTED
CITY IN THE WORLD
50% OF THE £8Bn
TO THE ECONOMY
+
UK
IN TAX REVENUES
the cost to the uk
OF FAILING TO ADDRESS
DEMAND FOR GROWTH
short haul OVER 60 yearS
MARKEt £18 - £20bn
they are now expanding into COST TO USERS
the business sector and the
LONDON medium and long haul markets £30 - £45Bn
360
COST TO WIDER ECONOMY
DESTINATIONS
easyJet
carries more
UK AVIATION supports around
1 million JOBS
passengers than
PARIS any other uk airline
300 THE UK IS THE
DESTINATIONS
frankfurt
more business passengers
3rd
largest
250
DESTINATIONS
are using low cost airlines aviation network
11Connecting Britain to
A changing world//
Gatwick will deliver more Gatwick will serve the next
Around
70%
flights to more markets generation of aircraft
»» Only Gatwick can cater for all types »» Gatwick can provide the lower
of airlines flying to short and long costs and efficient service to
haul destinations - connecting cater for the next generation of
of passengers
the UK to all parts of the globe airlines and aircraft and keep the
in London airports UK competitive as its proportion
today are travelling »» Around 70% of passengers in London of transfer passengers shrinks
within Europe airports today are travelling within
Europe. Between now and 2050, an »» The new generation of aircraft are
extra 62 million people per year will more fuel efficient and can fly further,
fly within Europe reducing the need for hub transfer
we need to
passengers to make some routes
fly an extra »» Around 6% of passengers in London’s economic. Routes to countries such
62m
airports are travelling to or from as Chile will be served directly
emerging markets e.g. China, India from London
and South America. These markets
are growing rapidly and between now »» Transferring passengers represent
and 2050, an extra 18 million people 14% for London as a whole today but
PEOPLE per year will fly to and mainly from this will decline to 9% by 2050. About
these markets one fifth of Heathrow passengers and
to and less than 10% of Gatwick passengers
from »» Gatwick will be able to meet increased currently transfer between flights
demand for short haul European traffic.
europe It will also deliver direct flights to »» 69% of next generation long haul
emerging markets like Sao Paulo in aircraft on order by carriers are
18m
Brazil as well as adding frequencies and ‘hub-busters’ such as Boeing
destinations to its existing emerging B787s and Airbus A350s.
market routes such as China,
Russia, Vietnam, and Indonesia.
People to emerging
markets PER YEAR
BETWEEN NOW & 2050
passenger transfers
will decline
14% 9%
now 2050
12 CONNECTING BRITAIN TO THE FUTURE. FASTER.Gatwick will encourage more competition
and give more choice for airlines
»» Only Gatwick will deliver a
competitive proposition for both
low cost and network carriers
»» Competition between low cost carriers
Gatwick delivers and network carriers is intensifying.
In the UK, Norwegian now fly direct
more competition to New York and Los Angeles from
Gatwick and easyJet now carries more
more flights passengers than other UK airlines.
Low cost carriers are already growing
lower fares rapidly in the Asian long haul market
e.g. AirAsia X, Jetstar
»» The vast majority of orders for new
short haul aircraft are being placed
by low cost carriers. easyJet currently
have almost 80 new aircraft orders
to grow their fleet to 300 aircraft.
Expansion will lead
to much higher
charges at heathrow
£ £ £ £ £
£ £ £ £ £
£ £ £ £ £
£ £ £ £ £
£ £ £ £ £
£ £ £ £ £ £
£ £ £ £ £ £
£ £ £ £ £ £
£ £ £ £ £ £
£ £ £ £ £ £
AROUND £40 £12-£15
HEATHROw GATWICK
expansion expansion
13Connecting Britain to
A changing world//
Gatwick will enable the UK to compete Gatwick will deliver higher
quality and lower costs
»» Only Gatwick will provide a model »» There is rapidly increasing competition »» Only Gatwick can provide a highly
that is flexible enough to adapt to in the market for transfer passengers efficient airport and high service
the dynamic and fast-changing particularly from Doha, Abu Dhabi, quality standards, while also keeping
aviation industry where transfer Dubai and Istanbul airport charges low
traffic’s importance is declining
»» These new airports already handle »» Heathrow is already the world’s most
»» The North America long haul market is 160 million passengers a year and expensive airport and we estimate
significant and well established, but is plan to expand capacity to 475 million that its airport charges with a third
mature and growth will be modest passengers a year by 2020. The flag- runway would rise to around £40
carrier airlines which serve these hubs per passenger. This compares to
»» Emerging market airlines such as Air (Qatar, Etihad, Emirates and Turkish) expansion at Gatwick which would
China will increasingly fly to London have order books between 100% result in airport charges of £12
over the next few years. The ‘hub’ and 200% of their current fleets - £15 in today’s prices, together
forthis traffic will generally be at with lower charges at Heathrow
‘the other end’ with low levels of »» European hubs have seen their overall
transfers at London but a wide share of the market for Europe to the »» An additional runway at Heathrow will
network of routes available at the ‘rest of the world’ fall from 42% in turn the clock back to the monopoly
FLY DIRECT TO
China end. 97% of passengers on 2006/07 to 27% in 2012/13. In the days before the break-up of BAA,
NY LA
Air China’s Heathrow-Beijing service same time period, the market share of with even higher airport charges,
OR
start or end their journey in London Gulf hubs has grown from 9% to 32%. less competition and higher fares
From gatwick »» 170 million extra passengers with
a second runway compared to an
expanded Heathrow between
2025 and 2050.
170 million
extra passengers
with a second runway
compared to an
expanded heathrow
between 2025 and 2050
more Global
destinations to
2
help economic
growth through
business,leisure
1
and tourism
14 CONNECTING BRITAIN TO THE FUTURE. FASTER.oNLY GATWICK
CAN PROVIDE
A HIGHLY
EFFICENT
AIRPORT,
KEEPING
COSTS LOW
an additional
runway at
heathrow will
turn the clocks back
a 2nd runway creating a
WILL CREATE A monopoly with
balanced less competition
competitive
airport system
15COMMITMENT 1//
A new runway by 2025 at half
the cost and much less risk
Gatwick is already the most efficient single Flights to more DESTINATIONS Lower cost
runway operation in the world and it is
able to expand in a way that will improve An extra runway at Gatwick will provide The cost of building the second runway
efficiency and the passenger experience. capacity for 260,000 extra flights per at Gatwick is £7.8 billion compared to
Expansion will maintain London’s year, as opposed to Heathrow which we Heathrow’s estimated £15.6 billion.
position as a global aviation hub. estimate will deliver 190,000 extra flights. Gatwick’s much lower cost is explained
This is because we calculate that, due to a by a number of factors:
Creating a network of world class airports in variety of environmental and operational
London will deliver economic growth without constraints, Heathrow’s total capacity will »» Capital costs and risks are
putting unacceptable strain on London and be limited to 670,000 flights per year. substantially lower than at Heathrow
its population. Expansion at Gatwick will
add to London’s existing network of airport Gatwick is almost full over the busy »» The ‘up front’ costs are much
capacity and will be capable of serving all summer months. This means that lower and the Gatwick build
airline business models. The process of airlines cannot obtain the slots they will be phased over time
building a new runway at Gatwick to deliver want to operate new all-year schedules.
that vision is relatively straightforward. It also means there is no capacity »» There are only limited additional
to increase choice and competition, costs to improve Gatwick’s
The efficiency of Gatwick’s simple and which keeps prices higher for passengers. road and rail infrastructure
elegant design, its less populated location
and strong business case make Gatwick Expansion at Gatwick will enable 95 million »» Land has been safeguarded for a
expansion deliverable and low risk. passengers to fly in and out of Gatwick second runway at Gatwick since 2005
The airport will pass these benefits onto every year by 2050 – over 25 years that
airlines through lower airport charges means an extra 170 million passengers »» Any impacts of expansion on the local
and greater efficiency, which, combined compared with expanding Heathrow - natural and built environment will be
with increased competition, will in turn opening up competition and flying more limited compared to those at Heathrow
deliver lower prices for passengers. UK passengers to all parts of the world.
»» The new runway at Gatwick can be
developed without impacting on the
existing operations of the airport.
GATWICK expansion = HEATHROW expansion =
260,000 EXTRA FLIGHTS PER YEAR 190, 000 EXTRA FLIGHTS PER YEAR
= 10,000 flights
= 10,000 flights
BUILD COST BUILD COST
£7.8 BILLION £15.6 BILLION
16 CONNECTING BRITAIN TO THE FUTURE. FASTER.GATWICK image
17COMMITMENT 1//
A NEW RUNWAY BY 2025 AT HALF
THE COST AND MUCH LESS RISK
Delivered in 10 years World class design Built for our airlines
The new runway at Gatwick can be The Master Plan for the new runway at Low cost carriers need to operate a
operational by 2025, reflecting the Gatwick will transform the airport. Our new minimum of three journeys per aircraft
relative simplicity of the project. international gateway to the world has been per day in order to maximise fare revenue
Realistically, a third runway at Heathrow developed within the vision of Sir Terry and make their model viable. To deliver
is unlikely to open before 2030, if at all. Farrell, one of the world’s leading architects. this number of journeys, the aircraft has
This is due to the political and planning Sir Terry has designed and delivered iconic to be on the ground for less than 45
risks being significantly higher, with global buildings, such as Incheon airport in minutes. The entire process of boarding,
far more environmental damage and Seoul, and is at the forefront of sustainability unboarding, servicing and taxiing the plane
population disruption. The challenge as well as beautiful and efficient design. needs to be very quick and efficient.
is exacerbated by the need for major
construction over the M25 together Our design is based on three terminals, with Central to our master plan is the need
with introducing a congestion charge. an easy-to-navigate layout for passengers, to build an airport that works for airlines,
providing ease of movement across the site so that they can operate efficiently and pass
Between 2025 and 2030 – by when and minimal changes of levels. The existing on the benefits to passengers through lower
existing runways at all London airports North and South terminals will continue their fares. Our design has four crucial elements
will essentially be full – only the Gatwick programmes of upgrade and modernisation to deliver this:
option is likely to be able to provide the and increase the number of passengers they
UK with much needed additional capacity. can accommodate. The new terminal will be »» A simple and efficient airfield layout,
Heathrow’s plan may not be deliverable at a state-of-the-art, three-level facility with a allowing the runways to be fully utilised
all given the huge environmental challenges modular design allowing for expansion over
which have frustrated all previous attempts time. The top floor will be used by departing »» A design that meets the needs
to expand beyond its existing two runway passengers and sits under a high-level roof of all airline operating models
operation and continue to restrict the way allowing natural light to fill the area.
in which it is allowed to operate its runways. »» An airport design which will enable
The entire airport will use the latest airlines to operate to maximum
technologies to ensure processes are efficiency, together with competitive
Designed for passengers seamless and non-intrusive for passengers. airport charges
There will be a two minute shuttle time
Our plans began with the needs of our to any terminal for passengers arriving »» A design that can deliver a new
passengers. Simplicity is our key design aim, at the new public transport interchange. runway by 2025, relieving the
to create easy, intuitive navigation through pressure on London as soon
the airport with quick, reliable journey times. as possible.
Our aim is to make passengers feel relaxed
and in control, able to access their flights Supporting freight
quickly and enjoy good food and shopping
at their leisure. The second runway at Gatwick has
been designed to support significant
growth in cargo. This is forecast to reach
1,070,000 tonnes by 2050. While Heathrow
is much the largest freight airport today,
the growth of Gatwick, particularly in long
haul markets will provide the opportunity
for choice and competition within the
air freight market. Gatwick’s Master
Plan provides space for 65,000m2
of state-of-the art cargo buildings.
18 CONNECTING BRITAIN TO THE FUTURE. FASTER.19
COMMITMENT 2//
A STRONGER PLATFORM
FOR ECONOMIC GROWTH
Expanding London’s network of airports Economic benefit for the UK Analysis of Gatwick’s case from leading
through a second runway at Gatwick will economists Oxera, suggests that expansion
deliver more flights and more passengers A two-runway Gatwick competing with a will deliver ‘lower costs and superior
and lower airfares at less cost which will two-runway Heathrow on a level footing economic benefits’ which would help
boost the UK economy. Gatwick is the will encourage greater competition between all passengers and businesses.
most efficient option and will also inject airlines and airports, spur innovation, drive
the most competition and choice into greater cost efficiencies and result in lower Oxera’s findings show that the cost-benefit
the airport system. fares for passengers. Economic analysis ratio of Gatwick’s second runway plans
shows that benefits of a second runway would be three times that for expansion
Expansion at Gatwick offers benefits similar at Gatwick are around £90 billion over at Heathrow, delivering boosts to travel
to other major infrastructure projects such 60 years, compared with £50 billion for and the economy that would benefit the
as Crossrail and the London Olympic Heathrow expansion on the same basis. widest range of passengers and businesses.
Games. The UK as a whole will benefit from This figure is derived from weighing the
more flights to more destinations and more The £90 billion economic benefit will capital and operating cost of the scheme
choice, and London and the South East will be created because: against its economic value to the UK.
benefit from regeneration and job creation.
»» Gatwick is by far the most cost effective
and efficient expansion option
»» Greater competition will stimulate
more growth and more innovation
at lower fares
»» Gatwick expansion will enable 10
million more passengers to travel
each year by 2050 compared with
expansion at Heathrow - good for
passengers and good for business
»» The runway can be delivered by
2025 at no additional cost to the
taxpayer, enabling the economy
to reap the benefits faster
»» The construction disruption will be
considerably less at Gatwick with
no requirement to tunnel the M25
and disrupt airfield operations.
20 CONNECTING BRITAIN TO THE FUTURE. FASTER.21
COMMITMENT 2//
A STRONGER PLATFORM
FOR ECONOMIC GROWTH
Direct benefits to passengers Benefits to the wider UK Public accounts revenues to the
and airlines = +£51billion economy = +£28billion Exchequer = +£15billion
The largest economic benefits of expansion These benefits are generated by increased More air travellers will generate additional
will be enjoyed by the direct users of extra levels of trade, inward investment and tax revenues for the Government, in the
airport capacity, namely passengers, inbound tourism created by extra air travel form of Air Passenger Duty, VAT and fuel
airlines and the airport itself. Expansion to and from the UK. These are also more duties. In addition more air passengers
of Gatwick will enable an additional 45 local benefits such as the value of new jobs travelling to the airport by rail will generate
million passengers every year to travel, on at the airport itself and in the immediate fare revenue for the rail companies.
business, holiday or visit friends or relatives. area, together with the regenerative effect
on the South London and regional economy,
Oxera estimates the monetary value placed through the greater wealth and economic Environmental costs = -£14 billion
by these individuals on their ability to travel activity created by a larger Gatwick.
to be £51 billion. This figure also captures There are inevitably some environmental
the increase in airline competition and a costs associated with increasing flights.
corresponding reduction in airfares. Benefits of greater indirect competition in These are principally increases in the
the aviation industry = +£10 – 14billion number of people adversely affected
Finally, also included in the £51 billion are by aircraft noise, increases in greenhouse
the extra business revenues generated by Increasing airport capacity at Gatwick will gas emissions, and impacts on local air
additional passengers that benefit the increase opportunities for more competition, quality. Monetary values have been placed
airlines and airport itself. not only between airlines operating at on these impacts using the standard
Gatwick, but also between airlines operating Government appraisal methodology.
across the whole London airports system.
The result will be a general reduction in air
fares across the industry, in addition to the
fare reductions enjoyed by the passengers
of Gatwick themselves.
Breakdown of Heathrow’s economic benefitS
(Using approved Government methodology)
Passenger and airline benefits £29 billion
Wider economic benefits £21 billion
Indirect competition £0
Public accounts benefit £11 billion
Environmental -£11 billion
Total £50 billion
22 CONNECTING BRITAIN TO THE FUTURE. FASTER.passenger and WIDER ECONOMIC INDIRECT
airline benefits BENEFITS COMPETITION
BENEFITS
£51bn £28bn £10-14bn
£90bn
PUBLIC ACCOUNTS
TOTAL
BENEFITS environment ECONOMIC
£15bn £14bn BENEFITs
23COMMITMENT 3//
mORE COMPETITION, INNOVATION
AND LOWER AIRFARES
The Competition Commission’s decision Expansion at Gatwick will increase
2nd
to force the break-up of BAA has already competition in the London market
led to passenger benefits in terms of A
more choice, competition, innovation and An expanded Gatwick will handle
lower fares. In the case of Gatwick, levels more traffic than Heathrow today,
of service to passengers have improved further increasing the competition
Runway at gatwick
radically since the airport came under that has been injected into the London will help london fly to
440
new ownership and a series of industry- system following the enforced breakup
leading innovations have been rolled out. of the BAA (now Heathrow Airport Ltd)
by the Competition Commission.
The existence of two large airports in the
London market will encourage competition destinations
in three ways:
worldwide
»» More competition between the airports
»» More competition between the airlines
which use the airports
»» More competition from low cost carriers
Competition at Edinburgh Airport as an expanded Gatwick is able to
satisfy fully this increasing demand, 1 2
Edinburgh Airport was bought by Global much of which would be choked off
Infrastructure Partners in 2012. Since by a high cost expanded Heathrow.
then, competition between airports
in Scotland has delivered significant
benefits. Edinburgh has signed the biggest
deal in the airport’s history with easyJet,
Research studies have shown that benefits
to passengers are greatest, particularly
in terms of lower fares, where these three
a
3rd
agreed a new deal with Ryanair that saw elements are present. runway at heathrow
the airline return to growth at Edinburgh
will help london fly to
413
and promoted innovation, introducing the Expansion at Gatwick will give a much
UK’s first multi-airline bag drop facility. It is greater stimulus to competition and can
competing vigorously with Glasgow Airport. be expected to reduce air fares across
the entire system to the benefit of all
Prior to 2012, Edinburgh flew to only one passengers. Airfares will be up to £30
long haul destination on a regular basis, billion lower over 60 years with a second
compared to six long haul routes at runway at Gatwick. By contrast, an expanded
destinations
Glasgow. By 2014, four new long haul Heathrow would mean the reinforcement worldwide
routes had been added to some of of Heathrow’s market dominance and
the world’s major hubs such as Doha, would consolidate the high airport charges
Chicago, Philadelphia, and Toronto. which that dominant position protects.
Traffic at Edinburgh Airport has grown
from around 9 million passengers a year
in2012-13 to over 10 million passengers
a year in 2013-14.
1 2 3
24 CONNECTING BRITAIN TO THE FUTURE. FASTER.Benefits of competition – Gatwick leading
innovation since the break-up of BAA//
As we approach the fifth anniversary Increasing flights Service for passengers with
of the sale of Gatwick, we can see reduced mobility
that competition has driven a series As passenger and aircraft traffic increases,
of innovations at Gatwick, many of them Gatwick is constrained by the number and Passengers with reduced mobility are
leading to a positive response by other mix of aircraft it can service from its single a significant and growing part of Gatwick’s
London airports, including Heathrow. runway. Improving the use of this key asset customer base. When Gatwick’s new
is the only way to grow capacity. When the management team took over, it was evident
Improvements in security airport was sold by BAA, it was the busiest that there was a problem with the quality of
single runway airport in the world, with peak service being provided to these passengers.
One of the main priorities of the new movements up to 50 movements an hour.
Gatwick management team on change New service standards for passengers
of ownership in December 2009 was Under new ownership, Gatwick launched an with reduced mobility have been set at
to increase the efficiency of the security airfield capacity expansion project aimed at Gatwick, which far exceed the regulated
processes. The South Terminal security sustaining 55 aircraft movements per hour service standards set by EU legislation.
project was a new £45 million development – a target that was delivered in 2014. For example, passengers can now expect
to consolidate the three separate security Plans are underway to go even further and support within ten minutes of arriving at the
facilities into one and to introduce deliver peak capacity of 58 movements per airport, and to remain in touch with airport
a completely redesigned process. This led hour by 2018, with an ultimate target of 60 staff every 15 minutes throughout their
to an increase in the capacity of each movements an hour. journey through the airport. We have also
security lane. The introduction of a introduced a comprehensive system of help
Family Assistance Lane and a new Streamlined check-in points to provide access to assistance.
premium security product has improved
the quality and range of services offered. Gatwick has worked over three years with
Norwegian on a project to streamline the
This project has significantly improved check-in process. Bag-drop at the baggage
the passenger experience and regularly input point can now be done in less than
features as the best security area in any 15 seconds. Plans are now in process to
European airport. Security facilities at other introduce this new system across the airport.
London airports have improved in response.
The new security product in Heathrow’s
Terminal 2 reflects many of the features
that were introduced first in Gatwick.
Later this year Gatwick will launch its
Generation 2 security product which will
introduce a further step change in efficiency.
25COMMITMENT 4//
GREATER ECONOMIC
BOOST FOR THE UK
Expanding Gatwick could ‘complete
the compass’ of London’s regeneration,
ensuring all four quarters of the capital
have the chance to grow and prosper.
North London is strong economically More jobs Strong communities
and will benefit from development around
Kings Cross, Eurostar and the proposed At a local level, Gatwick is already the The new runway, an enhanced transport
HS2. West London’s economy is equally single largest company in the region, system, and job creation, will require
well-established and, as the London Plan employing 23,000 people directly, investment in local infrastructure such
states, is already ‘overheated’, so its capacity and a further 7,900 indirectly through as 9,300 new homes. Gatwick recognises
to absorb further benefits from expansion contracts placed with local businesses. its responsibilities as the largest local
will be limited. This strength in the local economy will employer in the region and we will play
be bolstered further as a second runway our part in ensuring growth and job
The South and East of London have always would generate an additional 22,000 creation enhances our local communities.
been the Capital’s poor neighbours but are direct and indirect jobs in the local area. Our pledge is to commit £50 million
where major regeneration is needed most. to housing infrastructure and
The Olympics started to redress the balance An expanded Gatwick will provide around apprenticeship schemes.
with the East beginning to move forward. 120,000 jobs in total, figures which match
Expansion at Gatwick would help continue the ambitions for Heathrow, but spread Gatwick will establish a £3.75 million
this growth, delivering up to 14,000 new jobs the employment and economic impact apprenticeship fund to create 2,500 new job
for East London and Thames Gateway areas. further with the ability to reach some of the opportunities for local young people –grants
most deprived parts of the Capital and the of £1,500 will be given to cover the start-up
This leaves the South and we believe the South East. costs of each new apprenticeship created.
airport expansion debate offers us a once-
in-a-lifetime chance to complete the Approximately 54,000 of the jobs from Gatwick will provide the 14 local authorities
compass of London’s growth. Around expansion at Gatwick will be created in in the local area with £5,000 per new house
one million people within the 20% most London and 46,000 in the wider South to help fund improvements in local
deprived communities in the South East East. Major transport improvements like infrastructure to support these houses.
live within 25 miles of Gatwick. Expansion Thameslink, which will have as great
at Gatwick could drive regeneration in an impact as Crossrail, will bring job Through the creation of new job
South London, doing for the South what opportunities into the reach of Londoners opportunities for young people and helping
the Olympics did for the East. Places like across the Capital. The rest of the new local authorities deliver essential new
Croydon, Lewisham, Sutton, Elephant jobs will be generated across the UK. infrastructure, the £50 million scheme
& Castle, Merton and Wandsworth present will ensure that local communities benefit
the clear need and opportunity for growth. Croydon, one of the Mayor’s Opportunity directly from the second runway.
They are well placed to take advantage Areas, would significantly benefit from
of the thousands of new jobs, transport expansion at Gatwick. Located 15 minutes
improvements and business opportunities from an expanded international airport and
which expansion at Gatwick would generate. 15 minutes from London’s Central Activities
Zone, Croydon is perfectly located to take
advantage of expansion. A new runway at
Gatwick would create additional jobs and
a catalytic effect on the local economy,
positioning Croydon at the heart of a major
economic development programme.
26 CONNECTING BRITAIN TO THE FUTURE. FASTER.GATWICK
EXPANSION WILL
GENERATE
AROUND
120,000 JOBS
2730
28 27
29
34
33
35
31
New flights from London Gatwick in 2050
32
36
New flights from London HEATHROW in 2050
Under Gatwick FAR EAST AFRICA
expansion// 1 Taipei (TPE) 7
Nagoya (NGO) 13 Kunming (KMG) 18 Durban (DUR)
2 Jakarta (CGK) 8 Penang (PEN) 14
Wuhan (WUH) 19 Dar es Salaam (DAR)
47 NEW destinations Denpasar-Bali (DPS) Yangon (RGN) Shenyang (SHE) Alexandria (HBE)
3 9 15 20
4 Osaka (KIX) 10 Mactan (CEB) 16
Xiamen (XMN) 21 Harare (HRE)
can be served from 5 Kabul (KBL) 11
Phnom-Penh (PNH) 17 Fuzhou (FOC)
the London Airport 6 Koh Samui (USM) 12 Hangzhou (HGH)
system by 2050
28 CONNECTING BRITAIN TO THE FUTURE. FASTER.42
44
40
41
46
15
45 43
47 36
5 7
4
22
20 39 14
12
38 17
13 16 1
23
25
9
11
24 10
6
26
8
19 2
3
21
18
ISC North america Latin America Middle East Europe
22 Amritsar (ATQ) 27
New Orleans (MSY) 31 Lima (LIM) 37 Erbil (EBL) 40 Astana (TSE) 44 Samura,Kurumoch
23 Ahmedabad (AMD) 28
Austin (AUS) 32 Santiago (SCL) 38 Dhahran (DMM) 41
Odessa (ODS) (KUF)
24 Cochin Intl (COK) 29 Honolulu (HNL) 33 Bogota (BOG) 39 Basra (BSR) 42 Yekaterinburg / 45
Ankara (ESB)
25 Kolkata (CCU) 30 Salt Lake City (SLC) 34 Caracas (CCS) Koltsovo (SVX) 46
Sarajevo (SJJ)
26 Trivandrum (TRV) 35 Quito (UIO) 43 Yerevan, Zvartnots 47 Adana (ADA)
36 Montevideo (MVD) Intl (EVN)
2930 CONNECTING BRITAIN TO THE FUTURE. FASTER.
Gatwick at the heart of the science,
research and the tech revolution
The Technology, Media and »» King’s Cross Central - spearheaded by Growth in the science and research
Telecommunications (TMT) sector development of Google’s London HQ sector will also be enhanced
is one of the major growth areas for UK plc, by an expanded Gatwick:
with a growth rate 2.7 times faster than all »» Croydon - witnessing a tech
other industries. Gatwick’s direct and fast boom following Croydon Tech City »» The Thameslink rail investment
connections to Farringdon on Crossrail in 2013, which has seen the area programme will provide direct
will be pivotal for this industry, providing become the second fastest growing connections from Gatwick
connections to other European tech centres technology cluster after Old Street to Stevenage (location of the
such as Amsterdam, Berlin, Paris, Dublin, Stevenage Bioscience Catalyst),
Eindhoven, Tallinn, Rhein-Main-Neckar and »» Guildford - which has developed Cambridge (UK’s life science
Helsinki. These tech centres will be able to a strong gaming cluster cluster) and Welwyn Garden City
connect directly through Gatwick to UK hubs (location of Bio Park - a world
such as: »» Brighton – which has a burgeoning class R+D laboratory centre)
tech scene, recently cemented
by the move of US tech giant »» Gatwick has a direct connection
Dyn and signing of £170 million to Kings Cross / St. Pancras where
deal to create “Silicon Beach” the £500 million Francis Crick
Institute at King’s Cross will open
»» East Kent – becoming a hub soon as Europe’s largest laboratory
for technology start-ups as they
become priced out of London. »» The recently launched MedCity
initiative by the Mayor of London
seeks to transform the London-
Oxford-Cambridge life sciences
sector into a “world beating power-
cluster”. Gatwick will also have a
direct rail connection to Oxford.
31COMMITMENT 5//
connecting the uk
regions to the world
A BETTER CONNECTED UK A second runway at Gatwick is Gatwick would put in place other measures
the best option for improving to enhance regional connectivity:
A decision on where to put additional connectivity around the UK:
runway capacity is crucial to the »» Incentives for additional
connectivity of the whole UK. »» Gatwick already serves more and start-up regional services
domestic destinations than Heathrow
Over the last decade, regional connectivity whose domestic services have »» Competitive ongoing charging
has been transformed. There are more direct been progressively cut back structures for regional services
flights to more global destinations, with
regional passengers having a greater choice »» A second runway at Gatwick »» Ongoing marketing support
of airlines and international hub airports will help deliver more domestic to airlines offering regional services
for markets that are not served directly. passengers (18 million in London
by 2050) to and from London »» Progressive development of the
It is also important that the regions than a third runway at Heathrow Gatwick Connect product by 2017
have good connectivity to London, not (17 million in London by 2050) to facilitate regional transfers
only as a destination in itself, but also
to provide access to the wide range »» Expansion at Gatwick would give »» Strong support for Government action
of global destinations as an alternative regional passengers a genuine choice to introduce Public Service Obligation
to connecting through overseas airports. of two gateway airports in London routes to maintain and enhance
regional connectivity.
A new runway at Gatwick will connect more »» Gatwick will provide transfer options
people to more places. The combination for regional passengers across GATWICK CONNECT
of more capacity, better operational a much wider range of destinations.
efficiency, lower airport charges, better The transfer experience would Consumers are increasingly bypassing
convenience for passengers, the ability also be better, with much lower traditional ways of booking flights,
to handle low cost carriers and much minimum connection times and seeking out the cheapest options
greater competition will generate using multiple airlines and new airline
substantially more traffic. »» Gatwick would facilitate transfers alliances, exploiting all potential journey
to and from low cost carrier airlines options. They are ‘self-connecting’.
»» An expanded Gatwick will provide
London with more destinations in »» Businesses in the regions travelling Gatwick Connect is a service which
2050 (440 destinations) than a new to London would benefit from saves our passengers time, and makes
runway at Heathrow (413 destinations) lower fares. This is particularly their movement through the airport
important with the increasing easier when they arrive and depart
»» An expanded Gatwick will deliver more numbers of business people on independently booked flights.
additional flights than a three-runway using low cost carriers.
Heathrow (over 1,300 per week by Gatwick Connect is a UK first. Passengers
2050) and will generate greater can check their luggage into their onward
economic benefits. flight seconds after picking up their bag
in the arrivals reclaim hall, speeding up
their journey by avoiding the check-in hall.
By 2017 the service will be upgraded to
enable customers to book connecting flights
in one transaction, and have the bag routed
to the onward destination without needing
to be checked in again at Gatwick at all.
32 CONNECTING BRITAIN TO THE FUTURE. FASTER.By 2050, 15 UK airports will
be served by Gatwick//
33COMMITMENT 6//
BEST PASSENGER EXPERIENCE
Improving the passenger experience is at Creating an aviation market Designing an airport that
the centre of everything we do at Gatwick that works for passengers works for passengers
Airport. Selecting Gatwick for a new runway
will encourage competition and drive Expansion at Gatwick would create Gatwick’s second runway has been designed
further benefits in passenger experience. greater competition between airports to make it the most efficient two runway
and airlines – the benefits of this would airport in the world. Passengers will
Gatwick consistently achieves 100% be lower fares, more choice and greater benefit from punctual service and very
attainment of service quality for airlines travel opportunities for passengers. short queuing and taxiing times, more
and 95% of passengers taking part in our on-time departures and fewer delays.
survey rated service as ‘good’ or ‘excellent’. European travel, short haul traffic and low
cost carriers will continue to drive most The simple, compact layout will mean short
This focus on our customers is not only of the growth in traffic and an expanded distances and journey times from arrival
driving more growth and better business Gatwick would meet the growth in demand at the airport through to the departure
for Gatwick, but also forcing other London for these services. Expansion at Gatwick lounges and gates. Whether arriving
airports to review their passenger offer, would also be better placed to meet the by public transport, or privately, access
improve quality and provide better value growth and demand for low-cost long-haul to the terminals will be quick and simple.
for the travelling public. travel – Gatwick’s lower airport charges Over two-thirds of passengers will arrive
and faster turnaround times would make via the Gatwick Gateway which will bring
Expanding Gatwick will deliver a number these services more profitable for airlines; together rail, bus, coach, hire car, pedestrian
of major benefits for passengers with encouraging a wider range of destinations and cycle access into a single interchange.
more flights from their local London for passengers.
airport, and better and more flexible
airport infrastructure allowing much
quicker journey times through the airport.
Proposed Gatwick Gateway
Source: Farrells
34 CONNECTING BRITAIN TO THE FUTURE. FASTER.Faster journey times to and from
the airport
100%
Gatwick is located in one of the best
connected areas in the UK. The
transformational rail improvements
that are already planned, irrespective
of Gatwick expansion, will mean that
ATTAINMENT OF there will be a modern train to central
SERVICE QUALITY London every 2.5 minutes. Gatwick will
be directly connected to 175 stations and
FOR AIRLINES to over 1,000 rail and underground
stations with just one change.
Providing passengers with a choice of
airports for most destinations will enable
them to use the airport most convenient
to their home, office or hotel.
An exciting part of the Gatwick airport
scheme is the Gatwick Gateway. This
will be a world class transport interchange,
accessible for airport and non-airport users
with car, bus, coach, rail, cycling and walking
facilities. It will provide simple, swift and
inclusive access right to the heart of the
airport as well as providing an important
asset for local communities.
95%
‘GOOD’ or ‘EXCELLENT’
This single main access point will simplify
way finding, and minimise on-airport
connection times. Gatwick Gateway
will be at the South Terminal and will
be connected directly to the New Terminal
and North Terminal by automated
SERVICE RATING above ground people movers with
FROM PASSENGERS a journey time of around two minutes.
35COMMITMENT 6//
BEST PASSENGER EXPERIENCE
Faster journeys to and Getting on board
through the terminal
It is equally important to provide a fast, GATWICK KERB
New technologies will be used at Gatwick reliable and efficient operation on the airfield
to ensure passenger and baggage
processes are quick and non-intrusive.
to avoid delaying aircraft and passengers
on the ground. Our scheme has a number
TO GATE for
Remote check-in, self-service bag drops,
automated boarding gates and other
of innovations to achieve this:
departures
will be
developments will ensure that queuing »» Taxiing times and runway delays will be
is avoided almost entirely. We have set minimised by locating the new terminal
30mins
ourselves a new target that will allow between the two runways, offering
all departing passengers to reach the exceptionally short taxiing distances
departures gates from arrival at the airport
within 30 minutes and returning passengers »» Aircraft will land on the runway closest
to leave the airport within 45 minutes. For to their gate
transferring passengers we will commit to
a minimum connect time of 45 minutes, »» High-capacity runways with flexibility
regardless of gate, airline or terminal. to accommodate arriving and departing
flights will enable air traffic controllers
These journey time improvements to reduce taxiing distances.
are possible by designing out queues,
minimising walking distances, minimising The resulting maximum taxiway and holding
the need to change levels and providing times will be 15 minutes – this compares
travel assistance where needed such with an estimated 45 minutes for a three
as moving walkways. Of course, where runway Heathrow.
passengers want to spend time enjoying
the airport, there will be entertainment,
restaurants, shops, family zones and quiet
GATWICK GATE
spaces so that everyone’s needs can be met.
TO KERB for
arrivals
will be
45mins
36 CONNECTING BRITAIN TO THE FUTURE. FASTER.37
COMMITMENT 7//
MOST EFFICIENT AND LOW COST
OPERATION FOR AIRLINES
Gatwick will charge airlines significantly
less than Heathrow. Combined charges
would be lower than today and competition
would be much greater leading to much
lower costs for passengers.
Gatwick will deliver a better Gatwick’s efficient airport will Gatwick’s lOW CHARGES WILL
deal for airlines keep airline operating costs low BE GOOD FOR AIRLINES
Airports charge airlines to use runway Gatwick operates the most efficient single Increasing the number of flights to and
space and infrastructure. These costs runway infrastructure in the world and from the UK depends on airports offering
are absorbed by airlines into the cost its design of the airport expansion will competitive charges for airlines. As well as
of passenger flights. enable it to deliver greater efficiencies the airport charges, airlines have other costs
with the benefit of a new terminal from operating out of an airport. On both
Airport charges at Gatwick are already sited between the two runways and counts expansion at Heathrow would be
relatively low at £9 per passenger, in served by unconstrained airspace. expensive and would constrain demand.
comparison to most other major European
airports, due to its operational efficiencies. Gatwick handles 20 million low cost airline By increasing its airport charges to around
Heathrow charges are among the highest passengers a year compared with less than £40, Heathrow will increasingly price itself
in the world at £22 per passenger. half a million for Heathrow. No independent out of the transfer passenger market.
low cost carriers operate out of Heathrow. Transfer passengers would have to pay
The increase in charges at Gatwick that Gatwick’s ultra-efficient new runway will over £80 in airport charges alone to fly into
would enable the runway to be built is stimulate this market. and out of Heathrow compared with much
relatively low – we would see charges lower charges at all Middle Eastern hubs.
increase to a range of £12 to £15 in the Low cost airlines require swift access
long-term. Gatwick’s greater charges with to airports, unconstrained by air traffic Similarly, for point to point passengers,
the second runway would remain lower control issues, short and quick aircraft Heathrow’s charges would be around £40
than many other major European airports, taxiing times and quick turnaround times compared to between £12 - 15 for Gatwick.
such as Schiphol, Zurich, and Vienna. at the gate. Heathrow cannot match This would be crippling for short haul
This competitive pricing is possible due Gatwick’s performance on any of these airlines. The average one way fare
to the scheme’s low cost, low delivery measures. This greater inefficiency which (including airport charges) for easyJet
risks and phased delivery programme. is inevitable because of the scale, layout is currently £68. Airlines would be paying
and environmental constraints of the third some £1.3 billion extra in annual airport
Heathrow has claimed that their airport runway at Heathrow, together with the charges with expansion at Heathrow rather
charges with a third runway will be £24 per additional congestion caused by extra than Gatwick by 2030, and this figure would
passenger, but this is based on unrealistic traffic, would make the situation worse. rise to more than £2 billion in today’s
assumptions and 2011/12 prices. We money by 2040. This represents a major
estimate that Heathrow’s charges to fund The short-haul, low cost segment additional cost for travel to the detriment
its new runway will need to rise to around of the aviation industry will be the of the UK economy.
£40, more than double the price of even source of growth in the London
the most expensive other major European market and only an expanded Gatwick
airports. This will place Heathrow at a will provide the right type of capacity
significant commercial disadvantage, at the right cost to meet this demand.
in transfer and long-haul markets and
would be prohibitive for the low cost
carriers who dominate short-haul. This
represents a major tax on air travel to
the detriment of the UK economy.
38 CONNECTING BRITAIN TO THE FUTURE. FASTER.You can also read
