Why the North will be open for business with Heathrow’s expansion plans

On October 25th in a long-awaited response, the government announced that it would be supporting expansion at Heathrow Airport.

A third runway is now set to be built at the country’s busiest airport after the government chose to back the Airports Commission’s recommendation to expand Heathrow rather than Gatwick airport.

As well as boosting Britain’s connections with the rest of the world, the third runway is also expected to “improve connectivity in the UK itself,” according to transport secretary Chris Grayling.

So what does this mean for the North?

The government said that a new runway at Heathrow would inject around £61bn in the economy, as well as create up to 77,000 additional regional jobs, many of which will be based in the North.

As well as improving the UK’s connectivity to the rest of the world, I also believe that the third runway will open the north up for business in a significant way.

An increase in flight capacity to the UK’s global hub from regional airports, such as Leeds Bradford, Doncaster Sheffield, Newcastle and Manchester, will help bridge the ‘North-South Divide’, give businesses more access to international markets and boost trade, as well as attract national and international investors to the Northern cities.

To support the economic growth of these regions, however, it is vital that the government, Heathrow and the country’s regional airports launch new domestic routes and not fall in the trap of focusing on the benefits it offers London and the South East.

Business community reacts

Following the government’s controversial decision, Bdaily compiled a list of reactions from business leaders within the Northern regions. Let’s see if they agree.

Andrew Cornish, CEO of Liverpool John Lennon Airport

“Liverpool John Lennon Airport welcomes this news and will continue to support Heathrow’s proposals ahead of a final decision due next year, so that regional airports such as Liverpool can benefit by the future opening up of access to the UK’s hub airport for improved worldwide connectivity.”

Graeme Mason, Planning and Corporate Affairs Director at Newcastle International Airport

“We are pleased that the Government has agreed with the recommendations of the Airports Commission and decided in favour of expanding Heathrow. We will now support the Government and others to ensure that the third runway is built and to maximise the benefits to the North East that this development will bring.

“The North East currently enjoys good connectivity into Heathrow with up to six British Airways services a day, supporting over 500,000 passengers to and from the North East.

“By constructing a third runway, and providing additional capacity, we hope these services can be safeguarded, and can in the future also connect to a much wider range of global destinations.”

Steve Gill, Chief Executive of Doncaster Sheffield Airport

“We welcome the Government’s recommendation for London Heathrow as its preferred location for additional south east capacity. Connectivity into the UK’s global hub is key to supporting economic growth of the regions and secured slots for regional services will ensure the economic benefit including inbound tourism are felt across the whole UK.

“Whilst this announcement is broadly welcome, the government has a real opportunity to fully utilise the role of regional airports in facilitating additional capacity further removing constraints on the South East and as economic assets in their own right.

“Our airport, one of the fastest growing in the UK is uniquely placed to take significantly more of the UK’s aviation capacity needs, thanks to the unconstrained expansion potential of our airport site for passengers and freight, with limited environmental impact and available air space.

“With our central UK location combined with the opening earlier this year of the new motorway link road from the M18 to the airport makes us well placed to deliver significant transport connectivity for our region and the wider country.”

Ken O’Toole, CEO of Manchester Airport

“Connecting the UK to the rest of the world is key to driving economic growth.

“Now that a decision has been taken on the location of a new runway, there is an opportunity to develop a new aviation policy that seeks to maximise the contribution all airports can make to improving our global connectivity. We welcome the Government’s commitment to doing just that.

“Airports up and down the country, including Manchester, have a critical role in the future prosperity of both the regions they serve and the country as a whole. For example, Manchester’s two existing full-length runways have the ability to handle up to 55m passengers per year – more than double current numbers.

“While a new runway at Heathrow will be good for the UK economy, analysis shows that growing Manchester Airport to 55m passengers per year would generate £75bn worth of economic benefit to the North West, six times more than a new runway at Heathrow would. Realising Manchester Airport’s full potential will be the thing that delivers most benefit to the Northern economy in years to come, through the employment, trade and investment that it will generate.

“So, an immediate priority for Government must be to work with airports to make the best possible use of existing capacity in the 10-15 years before a new runway can be delivered.

“That includes pressing ahead with initiatives that encourage the development of new routes from Manchester, such as the integration of road, rail and aviation policies and ensuring we have a tax regime that stimulates, rather than inhibits global connectivity.

“We must learn the lessons from the slow Airports Commission process, which has been incredibly protracted, and ensure the new aviation policy looks at what is best for the UK as a whole and enables all airports to compete successfully on the global stage.”

Did the government make the right decision to bach the expansion at Heathrow Airport? Do you think this decision will benefit the North? Please share your thoughts in the comments section below.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →