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Press Releases


Leisure Airlines Oppose Gatwick Cross Subsidy

31 May 2005

Thomsonfly, Thomas Cook, First Choice Airways, MyTravel Airways and Monarch Airlines have reacted angrily to BAA's announcement that it plans to raise funds to build the proposed new runway at Stansted by cross subsidisation from passengers at Gatwick and Heathrow.

Kevin Hatton, MD of Thomsonfly said: "The announcement by BAA is against the current CAA position on cross subsidy and we would be outraged if our passengers at Gatwick who have no interest in Stansted are forced to pay for a £4bn gold plated development that has no airline support at all! "

The Charter Airline Group has serious concerns over the ability of BAA to fund the development and maintains Stansted should only be developed if the users are willing to pay for it.

In light of BAA's announcement that they intend to raise the money to fund Stansted's second runway development by charging £1 to all passengers travelling through Gatwick and Heathrow, the charter airlines will now be adding their voices to the call for the Civil Aviation Authority to stand by its statement to ensure Stansted's development should be financially self supporting and should only encompass what it's users are willing to pay for.

Peter Brown Chairman of the Charter Airline Group added: "This is yet another abuse of BAA's monopoly position of the London airports and adds to the growing number of reasons why the BAA should be broken up. Until the CAA can ensure BAA can fund Stansted though current users charges we believe work should continue on the case for a third runway at Heathrow and a second runway at Gatwick."

Notes:

The Charter Airline Group of the UK (CAG) represents the UK's leading leisure airlines, First Choice Airways, Monarch Airlines, MyTravel Airways, Thomas Cook Airlines and Thomsonfly.com (formally Britannia Airways).

Between them these airlines operate from 26 different UK airports to over 85 destinations within the EU in addition to a wide range of destinations outside the EU, carrying over 32 million passengers per year.


Airlines Offer a "Two Cheers" Welcome for Gatwick Growth Proposal

4 April 2005

The Charter Airline Group representing the UK's leading holiday airlines today gave two cheers to the newly published Gatwick Airport Masterplan setting out the BAA's plans for future growth at Gatwick.

Peter Brown, Chairman of the CAG and Chief Executive of Monarch Airlines said: "Whilst we are delighted that the BAA has confirmed that the option of a second runway at Gatwick is both a practical and economic solution to providing additional aviation growth in the South East, we are disappointed that it is only suggested in the context of a failure to move forwards with an additional runway at Heathrow. We strongly believe that there is case for additional runway capacity being brought on line at Gatwick in its own right and the Gatwick Masterplan confirms that. We continue to oppose any cross subsidisation of airline charges to fund a new runway at Stansted."

"We doubt that the figure of 45 million annual passengers at Gatwick will be achieved from a single runway without a radical change in the average size of aircraft at Gatwick and thus the airport will become gridlocked much sooner than either the BAA or The Government believes. Fortunately the land will be safeguarded to allow for a change of mind in the future when this becomes more obvious."

Notes:

The Charter Airline Group of the UK (CAG) represents the UK's leading leisure airlines, Britannia Airways, First Choice Airways, Monarch Airlines, MyTravel Airways and Thomas Cook Airlines.

Between them these airlines operate from 23 different UK airports to over 80 destinations within the EU in addition to a wide range of destinations outside the EU, carrying over 32 million passengers per year.'


Leisure Airlines Respond To Government Proposals For Future Night Flying Restrictions

29 October 2004

The Charter Airline Group (CAG) representing the UK's leading leisure airlines Britannia Airways, First Choice Airways, Monarch Airlines, My Travel Airways and Thomas Cook Airlines together make the following response to the Government's Stage 1 consultation on new night flying restrictions at Heathrow, Gatwick and Stansted to apply from 30 October 2005.

CAG airlines collectively carry over 32 million passengers annually to and from a worldwide range of leisure destinations from around 20 UK airports.

GENERAL COMMENT

CAG airlines do not operate any series of flights from Heathrow and together base just four aircraft at Stansted. However, their largest operation in the UK is Gatwick where together they base about forty-five aircraft in the summer months, somewhat fewer in the winter.

Before commenting on the detail of the consultation, we urge the Government to take account of the findings of the report it has prepared on Attitudes to Noise from Aviation Sources in England, in particular the findings of the Phase 1 report of July 2004. Section 2.2 of this report made further investigation into the impact of night noise at selected airports including Gatwick. Following on from a number of random interviews with local residents, paragraph 2.2.5 stated:

It was clear from the interviews that … respondents living close to LGW appear to have lower levels of disturbance and annoyance from nighttime aircraft noise than those living near EMA, despite the higher overall amount of nighttime traffic at LGW. Focusing explicitly on nighttime noise in the LGW area interviews elicited relatively low levels of concern, in contrast to the unanimous concern expressed unsolicitedly by EMA respondents.

According to the Aviation White Paper, Gatwick sustains approximately 100,000 direct and indirect jobs both on and off-site. Many of these people, including the writer, are also local residents and choose to live within the airport noise contours. While this in itself does not necessarily lessen the need to continue to strive towards further reductions in aviation noise over the dramatic improvements achieved in recent years directly attributed to investment in new technology by airlines, it might reasonably be argued that the relatively few numbers of complaints made either by individuals or (minority) elected or unelected local authorities seeking to constrain airport activity that would almost certainly lead to lost jobs are probably not representative of the many.

We therefore believe this should be taken into account into the calculation of the draft RIA to be provided at stage two. To that end, it is also pertinent to take account of the draft interim Study Report on the economic impact of night flights in Europe, published by the EU Commission that concludes that well over 360,000 jobs in the EU are dependent on night flights.

ANSWERS TO SPECIFIC QUESTIONS POSED

Q3. The data would be more balanced were it to include more historic information detailing the dramatic reduction in the numbers of people affected by aircraft noise over the past ten years or so. In 1996, almost 15,000 people lived within the Gatwick 57dBA contour - today there are just over 4,000.

Q4. We are not convinced that the setting of specific but differing environmental objectives at the London Airports beyond the general objectives as set out in the UK Regulations represents a prudent or consistent way to proceed. We are concerned there is a risk that these might be arbitrary and discriminatory pandering to the concerns of an unrepresentative few. There is however a role for better land use planning to preclude further residential development in noise sensitive areas probably by strengthening PPG24.

Q5. We agree that the QC system is appropriate for the future.

Q6(a) We could probably agree in principle with the introduction of a new QC/0.25 band but would wish to see proper modelling as to how this might affect quota usage before being certain.

We are content with retention of the adjustment as quoted.

(c) Over the past few years, we have consistently supported the prohibition of QC/4 aircraft from being scheduled to operate in the NQP. While there has been a voluntary ban, it has not been a complete success due to the exception of the DAS Air Cargo service at Gatwick, responsible for the majority of night infringements. However, we DO NOT support a complete operational ban, at least not in respect of passenger aircraft, throughout the NQP as this could have a very deleterious affect on passenger convenience when facing delays if, due to the exceptional unserviceability of an aircraft, the only other non-fleet aircraft available (probably through a last minute sub-charter) is a QC/4 aircraft. This may well be the case in peak season, particularly in respect of long-haul services. Further delay due to the imposition of such a ban would also have serious cost implications for passenger airlines primarily due to the advent of Regulation EC 261/2004 giving passengers an absolute entitlement to refunds in the event of a delay of more than five hours for whatever reason.

Q7 We support the common arrangements but with individual movements limits and noise quotas set for each airport to meet the differing demands. The night quota period should remain the same at each airport.

We OPPOSE any extension in the NQP, particularly in the morning period after 0600, due to the significance of this period to our programme. Each CAG member is providing financial details separately.

It would be impossible for us to reschedule flights currently in the night period into the daytime. Apart from there being insufficient daytime slots to absorb these flights (at both ends of the journey), the economics of charter relies on multiple “rotations” (return flights) per day and the aircraft are already fully utilised during the daytime. Such restriction in aircraft utilisation for effectively one-third of the 24 hour period would destroy the economics and probably the viability of the operation. This is one reason why most UK charter operators utilise modern, quiet aircraft that generally are unhindered by night flying restrictions on noisier types.

Unfortunately it is difficult to quantify the value of any individual flights to the business other than in general terms. It is not reasonable to make the simplistic assumption that if certain flights were not permitted to operate in particular time bands that it would just be the revenue from those flights that would be lost to the business. At both Gatwick and Stansted, CAG airlines operate intensive programmes with aircraft often scheduled for late arrivals and early departures within the existing night period. Were we unable to operate aircraft in the 0600-0700 period due to increased night restrictions, it would not be possible to reschedule operations into the daytime period due to capacity constraints. In effect whole aircraft would become uneconomic and would be withdrawn.


Leisure Airlines Oppose Stansted Runway Subsidy

02 August 2004

Britannia, Thomas Cook, First Choice, My Travel and Monarch Airlines who together form the Charter Airline Group of the UK and who fly over 31million passengers a year, have raised serious doubts over the viability of a new runway at BAA Stansted Airport.

The concern centres on the proposed funding for the new runway.  In a joint letter to British Airport Authority, who own Stansted Airport, the Department for Transport and the Civil Aviation Authority, the CAG have objected to paying higher fees at London Gatwick and Heathrow in order for the proposed £4bn new runway at Stansted to be constructed.

Recent events at Stansted involving Ryanair and their refusal to pay landing fees to the BAA have raised serious doubts within the industry that BAA will be able to fund the development of the new runway without cross subsidisation from other London Airports. 

Peter Brown Managing Director of Monarch Airlines said “We believe Stansted should only be developed if the users are willing to pay for it.  We see no evidence that BAA can pay for this runway without cross subsidisation and we are left to make the conclusion that cross subsidy is the only way left to raise the money. Until this can be otherwise adequately demonstrated, work should continue on the case for a third runway at Heathrow and a second runway at Gatwick, the latter option being unconstrained by the environmental problems that plague Heathrow.”

Kevin Hatton, MD of Britannia added, “If Ryanair, who make up 63% of the traffic at Stansted, won’t pay their current landing fees then what hope have the BAA got of raising the cash through increasing charges to fund a £4bn pound development?  We don’t want to see our fees increased at other BAA airports to fund a white elephant that has little industry support.  We support the Government’s decision to expand airport capacity in the south east but firmly believe development should only go ahead if the BAA can show that Stansted users are willing to pay for the new runway and they will not have to resort to cross subsidy.  The white paper clearly states that new capacity should be paid for by airport users.”

Britannia Press Office: 01582 428180

First Choice Press Office: 01293 588714

Monarch Press Office: 01582 398287


The Charter Airline Group's Reaction to Government White Paper on Air Travel in the UK

16 December 2003

"The Charter Airline Group welcomes the Government's acceptance of the need for new runway capacity to meet the anticipated tripling of demand in the next thirty years. In particular we support the Government's stated intention to safeguard land at Gatwick for a new wide-spaced runway both on its own merits and in case the conditions attached to a new Heathrow runway cannot be met. However, we are disappointed that Stansted is likely to be the first airport in the south-east to receive a new runway and have some concerns over how this might be funded. We welcome plans for new runway and terminal provision at regional airports to meet demand in the future. We are ready to address the environmental challenges brought about by such growth with a commitment to continue to operate modern, quiet, fuel efficient, low emission aircraft in our core fleets."


Price of Holidays will soar if Gatwick is not Expanded

3 July 2003

Unless a second runway is built at London Gatwick Airport, holidays will increase by up to £100 per person, say the UK’s leading holiday airlines, air2000, Britannia, Monarch, My Travel and Thomas Cook.

Commenting on the Government’s current consultation on airport development in the southeast over the next 30 years, the Charter Airline Group aims to safeguard affordable leisure travel for future generations.

“One of the greatest achievements in air travel over the last 30 years has been its expansion from the preserve of the privileged few to become an accessible and affordable facility for everyone,” said Peter Brown, Chairman of the Charter Airline Group.

Currently 80% of all international travel from the UK is for leisure purposes*. Gatwick airport is the most popular choice of airport for these people. By 2030 passenger numbers are expected to triple to 500 million, 300 million of which would use airports in the south east of England..

“Nine out of ten Britons now holiday abroad thanks to the UK aviation industry being the most competitive in Europe. Almost 70 per cent of leisure travellers departing the UK are drawn from the C/D/E socio-demographic groups. For holidaymakers living in the South East, Gatwick is their main choice of airport. To choke off growth at Gatwick would effectively exclude many of these people from travelling,” said Mr Brown.

As well as increasing the cost of holidays, restricting demand would also lead to a significant impact on the environment as people are forced to travel further afield to get to a different departure airport. For example, if you live in Kent you may have to travel to Stansted or Luton airport.

A second runway will benefit local residents bringing holiday flights to more destinations more cheaply and with it, substantial business benefits. If future demand is not met there can be no growth in the holiday industry creating massive implications for jobs, the economy and affordable travel for everyone.

 

Key Issues:

About CAGUK . . . 

Access to Air Travel
for Disabled People . . .
 

Airport Capacity . . . 

Caring for the
Environment . . .
 

Airline Passengers
– Comfort and
Safety Issues . . .

Punctuality . . .

Press Releases . . .


External Links:

British Air Transport
Association . . .

International Air
Carrier Association
(IACA) . . .

 


Contact Information:

Peter Brown
Chief Executive
Monarch Airlines Limited
Prospect House
Prospect Road
London Luton Airport
Luton
LU2 9NU

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 Updated: 10 August 2005 © Charter Airline Group & Evoke Design