IATA Statement on UK Government’s Heathrow Expansion Announcement

Geneva - The International Air Transport Association (IATA) welcomes the UK Government's renewed commitment to unlocking economic growth, enhancing global connectivity, and supporting trade and tourism by expanding Heathrow Airport, the country's primary hub.

"The government's long-term goal to stimulate the economy by expanding global connectivity with a Heathrow expansion is spot on. However, the political haste to move quickly to capture the economic benefit of construction will seriously handicap the UK in the long term if it fails to build something that is affordable.

There is general agreement that the cost impact of Heathrow's current proposal, under the existing regulatory framework, will make the airport unaffordable in both the short and the long term. Heathrow's long addiction to gold-plated construction costs has already earned it the unenviable standing as one of the most expensive airports in the world, if not the most expensive. So, intense caution is warranted.

The Civil Aviation Authority (CAA), as the economic regulator, has a serious task from the government-to put in place regulatory and cost-control guard rails that will deliver an affordable airport for both passengers and airlines. That should start with a reassurance that there will be a transparent, competitive process to determine what is built and at what cost.

Moreover, next month's budget announcement is an opportunity to instantly shore up the UK's competitiveness by making Heathrow, and every UK airport, more affordable. A reduction or at least a freeze in Air Passenger Duty (APD) rates will be an essential element of the long-term success of whatever expansion plan is pursued," said Willie Walsh, IATA's Director General.

IATA stands ready to work with the Government, the CAA, and industry stakeholders to ensure that Heathrow's growth is sustainable, efficient, and beneficial to all.

> Read the Value of Air Transport to the UK report (pdf)

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