Poor aviation links could cost the UK £14 billion in lost business over a decade, a study commissioned by Heathrow says.
Lack of direct flights from the UK to emerging markets may already be costing the UK £1.2 billion a year as trade goes to better-connected competitors, the report claimed.
But this figure could rise to £1.6 billion by 2021 – equivalent to one-third of the UK’s current balance of trade deficit.
The report is in response to the consultation on aviation policy by the Government which has ruled out more aviation capacity in south east England including a third runway at the international London hub.
It predicted that Heathrow is likely to lose its position as Europe’s busiest airport by 2021, falling to third behind Frankfurt and Paris Charles de Gaulle, with Amsterdam Schiphol airport close behind.
It warns that only a major transfer hub is capable of serving emerging markets. But because Heathrow is full, the UK is missing out on opportunities for trade and falling behind European competitors.
Colin Matthews, chief executive of Heathrow owner BAA, said: “The opportunity for the UK to establish itself as the leader in Europe in its connections to India, China and other important markets still exists.
“But if Britain is not to lose out to international competitors, we need an aviation policy from government that recognises the role of a hub airport in supporting growth – and we need it quickly.”
Aviation minister Theresa Villiers responded by saying: “Both coalition parties had an electoral mandate to cancel Labour’s plans for a third runway at Heathrow.
“We are keeping the promises we made and we are determined to deliver a new approach to aviation policy – one that ensures the aviation sector both supports economic growth and addresses the environmental impacts of flying.”