Northern Powerhouse growth to suffer over airport expansion delay, claims Heathrow chief exec

The Government’s aim to to transform the North of England into a Northern Powerhouse are in jeopardy unless action is taken on the London airport expansion, Heathrow chief executive John Holland-Kaye has claimed.

Mr Holland-Kaye recently highlighted some new research, compiled by Frontier Economics, during a keynote speech at the International Festival of Business.

The research reveals that the economy of the North will lose £710m in import/export trade every year if no decision is made on an airport expansion. This is based on the first analysis which shows that flying via a hub airport abroad, rather than via Heathrow, generates less trade for the British economy.

If Heathrow wasn’t constrained, then more passengers flying to and from the UK regions could fly via Heathrow instead of having to fly via another international hub. The report claims this could help facilitate an additional £1.7bn in trade each year.

Heathrow could also connect the Northern Powerhouse to countries and cities where there is not enough demand from other airports to put on the route.

Mr Holland-Kaye reiterated that this is why Heathrow welcomes the continued growth of direct services from airports in the North of England including Manchester, Newcastle, Liverpool and Leeds.

However, as Heathrow is at capacity, many people in the UK have to rely on booking connections via hubs in Europe, Istanbul and Dubai to reach long-haul destinations with only one stop.

An expanded Heathrow could provide further trade as a result of the new domestic connections from airports in the Northern Powerhouse, such as Liverpool John Lennon Airport, Robin Hood Airport Doncaster Sheffield and Humberside Airport.

John Holland-Kaye, chief executive officer at Heathrow Airport, said: “Heathrow is the right choice for a long-term plan to back every corner of the UK. The Government is going to struggle with the foundations of the Northern Powerhouse if a third runway isn’t built to support the region’s existing connectivity.

“To rebalance and strengthen the British economy, the UK needs a domestic hub airport that can compete with our unconstrained hub rivals abroad, and that’s something only Heathrow can deliver.”

Heathrow has committed £10m to a Route Development Fund, which will provide startup support for new domestic destinations. It will enable up to five new routes to be established following Heathrow expansion, with routes from airports like Liverpool, Humberside and Doncaster/Sheffield potentially eligible.

James Ramsbotham, North East Chamber of Commerce chief executive, added: “We completely agree the lack of decision on Heathrow’s expansion is extremely detrimental to the ambitions of the Northern Powerhouse.

“As a region in which exports and inward investment are essential to our economy, we need global links and these can only be provided with access to the UK’s hub airport. This will enable us to build on existing connections and exploit new markets across the globe.”

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