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Aviation policy is stunting growth, BAA report will argue

A report for airport operator BAA due out this week is expected to question the coalition government’s aviation policy.


It will reportedly show that Heathrow is falling further behind its European rivals in the battle for key routes to emerging markets. The report is believed to reveal that the value for business trade to emerging economies with a direct flight connection to the UK is 20 times higher than to those where there is no link.


The value of the trade potential being threatened could run into billions of pounds, The Sunday Telegraph reported. The study by Frontier Economics is reported to argue that hub airports such as Heathrow are vital to promoting economic growth. But the London airport is losing out to Parish Charles de Gaulle and Frankfurt, which offer more direct routes to major cities in China.


A quarter of all economic growth will come from China by 2016 and half of all economic growth will come from emerging markets, the report will argue. China alone is building 37 airports to serve its fast-growing cities.


The government blocked development of a third runway at Heathrow as soon as it came to power and is undertaking a review of its aviation policy.

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