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bettersolution.gatwickairport.com 01
A better solution
for London & the UK
Connectivity, competition & certainty
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GATWICK
STANSTED
HEATHROW
LUTON
LONDON
CITY
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3
46
7
5
Liverpool St Station
City of London
Westminster
The West End
Canary Wharf
Paddington Station
Victoria Station
London Bridge
St Pancras International
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A competitive and
resilient airports
system could deliver:
•	 The connectivity that London
and the UK demands
•	 True airport competition
•	 More passenger choice,
better service and lower fares
•	 Better resilience to disruption
•	 Less environmental impact
than expanding Heathrow
•	 An affordable, privately
financed solution
bettersolution.gatwickairport.com 1
There is already much debate about
possible answers, but we believe it is
important to understand the questions
surrounding the airport capacity debate
before jumping to a solution. We must
consider the unique realities of the London
market and, very importantly, what
passengers want and need for the future.
We need to understand the huge amount
of change that has happened in both the
airline and airport industries over the past
10 years, and what trends we see going
forward. The Airports Commission is rightly
looking forward, rather than simply
reinforcing the past.
Much is already changing in air travel –
from the shift in traffic towards emerging
markets, the emergence of huge new hub
airports in the Gulf, through to the
introduction of new aircraft which will
help long-distance direct flights to bypass
traditional hubs. Within London’s airports
we have seen a transformation. The fact
that the three largest are now separately
owned, and are starting to compete, is a
real game-changer.
We must also understand how the market
really works now. Today, 87% of all
passengers using London’s airports are
simply starting or ending their journeys at
them. This proportion is likely to increase in
the coming years. This means, despite what
the proponents of creating a ‘mega hub’ at
Heathrow or in the Thames Estuary might
say, that the importance of ‘transfer’ or
‘hub’ passengers is exaggerated.
Policy should be framed around the travel
needs of all passengers and not dictated
solely by those who only want to change
planes when they fly through London.
Transfer passengers are important. But they
are very much in the minority, as are the
routes that need their support. The
evidence shows that today there simply
isn’t the need for a ‘mega hub’ in London.
As the Airports Commission goes back
to the drawing board, and looks at all the
options, they will need to ensure that any
recommended solution is deliverable,
environmentally sustainable, and has a
strong business case behind it. Scope for
a degree of political consensus is also key.
Surrounding all this is the crucial need to
deliver certainty to airlines, businesses and
communities.
Having started our detailed analysis in
October 2012, a clear long-term vision for
London and the UK which can meet these
needs has emerged.
Our vision is for three competing major
London airports, each with two runways
eventually, complemented by London City
for business traffic, and Luton and London
Southend for predominately leisure.
The Airports Commission should
recommend where the next single runway
will be built and suggest where the next
one should follow. In making that decision,
the Commission will have to make
recommendations based on clear selection
criteria. I believe that the expansion of
Stewart Wingate
CEO London Gatwick
Foreword by Stewart Wingate
London enjoys world-class air links. It is one of the best-
connected cities in the world, with 134 million passengers
flying in and out each year1
. But while there is spare airport
and terminal capacity right now, London’s status as one of
the world’s most important air transport markets will not last
unless we act soon. We believe London will need a new
runway by the mid-2020s.
87%
of passengers using
London’s airports are
simply starting or ending
their journeys at them.
134m
Each year 134 million
passengers fly in and
out of London.
A better solution for London  the UK Connectivity, competition  certainty2
Foreword by Stewart Wingate
Gatwick and, in time, perhaps Stansted as
well, provides the best solution, and would
solve the capacity issue for a generation.
More than anything else, I want to see true
passenger choice. So far, the needs of
passengers have been largely lost in the
aviation debate. They should be able to
choose where they fly to and from, and who
they fly with. In the longer term, capacity
has to be matched to the passenger need.
Quite rightly, they want better value fares,
new destinations, higher quality airports
and more convenient door-to-door journeys
each and every time they travel. Our vision,
based on true airport competition, can
deliver those benefits.
Gatwick has already invested more than
£1 billion since the change of ownership in
2009. We’ve opened new direct routes to
some of the fastest growing economies
such as China, Russia, Vietnam, Turkey and
Indonesia. In due course, there is likely to be
a need to provide more regional capacity,
thereby boosting UK connectivity from the
regions. More competition will help to
deliver the enhanced connectivity the UK
economy needs. Where there is passenger
demand, the market should be able to
respond, and in an affordable way.
There is huge potential for a new approach
to air travel, but we do not believe that it
should be at an unacceptable environmental
cost. We just cannot see how mixed mode
or additional runways at Heathrow can
be justified against environmental criteria.
Heathrow’s current noise ‘footprint’ is larger
than all other western European ‘hub’
airports combined.
There is now an opportunity to look to
the future and develop an airport strategy
which will provide benefits to the UK for
decades to come. As the debate continues
and we gather our evidence, we will publish
our findings online at bettersolution.
gatwickairport.com
Gatwick looks forward to playing its part
and doing the detailed work to support its
vision of a competitive network of airports
serving London and the rest of the UK.
Stewart Wingate
CEO London Gatwick
1billion
Since 2009 over £1 billion
has been invested in
Gatwick, with one focus
in mind – our passengers.
BELOW: Gatwick is
striving to deliver
the best passenger
experience now and
for the future.
bettersolution.gatwickairport.com 3
The connectivity that
the UK needs
Our vision would see all of London’s existing
airports supporting growth in air travel to
strategic destinations. Gatwick is already
supporting new connections to China,
Vietnam, Russia and Turkey. Our vision is
not unique – many of the world’s large cities
have more than one major airport, rather
than a single ‘mega hub’, to deliver the air
travel connections passengers want.
More certainty
We believe our solution is deliverable and
will give passengers, communities and
businesses the certainty they need. We are
confident that, when all the evidence is
taken into account, Gatwick will be the
preferred option for the next runway.
True competition leading
to more passenger choice,
better service and lower fares
Reducing reliance on one dominant airport
will give passengers a greater choice of
carriers and destinations, and would lead
to more competitive prices. Journey times
to home or the office would also be shorter
overall.
Less environmental impact
Three equally sized airports serving
London would have a much lower
environmental impact than simply
expanding Heathrow – whose noise impact
easily exceeds the combined impact of all
the other hub airports in Western Europe2.
With a second runway at Gatwick, there
would still be significantly fewer people
affected by noise than at Heathrow. That
doesn’t mean Gatwick doesn’t take local
community concerns about noise and air
quality seriously – we do.
The case for three airports
with two runways
It would deliver:
An affordable, privately
financed solution
We are backed by a strong group of
experienced shareholders and initial
estimates indicate that a new runway and
airport facilities at Gatwick could be funded
privately and has a viable business case.
We would also share with the Government
a proportion of the cost of improved rail
and road infrastructure.
More economic benefits
spread across the south east
Having three equally sized, well-connected
airports in London would help spread the
economic benefits of airport expansion
across the south east rather than
concentrating it in one location.
Greater resilience to
disruption
By spreading new capacity across different
locations, rather than concentrating it all in
one place, passengers at London’s airports
would be less vulnerable to the effects of
disruption at a single mega hub.
Building on our successful
airports
Our vision means using all of London’s
airports to their full potential, not closing
any of them.
We believe that the best first step in delivering this vision
is to build the next runway at Gatwick.
	 bettersolution.gatwickairport.com 3
A better solution for London  the UK Connectivity, competition  certainty4
What is the situation today
and what does the future hold?
In the short term, London’s airport system
has the capacity and connectivity needed
to meet demand.
Theoretically, London’s terminals could
house 32% more passengers than they
do already and its runways could
accommodate around 25% more flights3
.
In practice, no airport should choose to
operate close to 100% of capacity if it wants
to maintain some degree of resilience to
disruption. New runway capacity needs to
be available before this level of usage
is reached across London.
We know that in the 2020s, there will be
a need for extra capacity. London is unique.
We must also remember 87% of passengers
using London’s airports are simply starting
or ending their journeys at them4
. This kind
of demand is known as ‘Origin and
Destination’ (OD) within the aviation
industry. By contrast, only 13% are ‘hubbing’
or transferring to another flight going
elsewhere. This is because London is itself
the largest single market for aviation in the
world. Passengers want to fly to and from it.
Not through it. As such, London should be
seen as the hub for UK air travel – not one
single airport.
In terms of destinations, it is clear that
established markets will continue to be very
important to London’s airport passengers.
Today, Europe, North America, and to a
certain extent the Far East, the Middle East,
and the Indian Sub-continent dominate in
terms of places passengers actually want
to fly to.
Demand to fly to a range of emerging
markets today is small in comparison, but it
will also grow. Whilst today the UK is one of
the best-connected countries in the world,
we will need more direct links with key
markets that are not currently being served.
At Gatwick, we are already playing our part
by opening new direct routes to fast-
growing economies such as China,
Indonesia, Russia, Turkey and Vietnam.
We are achieving that because London is
unique in terms of the size of its air travel
market. Airlines want to fly to and from it.
To put it bluntly, there are enough people
who want to fly to the city directly from
Beijing, Jakarta, Moscow, Istanbul, Hanoi
and Ho Chi Min City for routes to be viable
and in many cases frequent. ‘Hub capacity’
is not a precondition for routes to these
countries. As a result, we are making the
best use of existing capacity and delivering
the direct connections needed to grow
exports and boost inward investment and
tourism from key markets. We will need
more direct air links to ensure the UK
competes. As Gatwick’s new routes show, a
traditional ‘hub’ airport is not the only way
to deliver these.
The Airports Commission is rightly looking
beyond how the aviation industry works
today. In doing so, it is thinking beyond the
traditional responses to the issue of airport
capacity which have been looked at, and
rejected, before. We need to get the
questions right first and build the answers
from there. The fundamental question
should be: what will work for passengers
and what are their future needs?
13%
Only 13% of passengers
at London’s airports are
hubbing or transferring
to another flight going
elsewhere.
LEFT: Gatwick has
opened new direct
routes to emerging
markets such as
Vietnam.
RIGHT: Passengers want
direct connections to
and from London.
bettersolution.gatwickairport.com 5
London Origin  Destination Airport Passengers by Market
(Source: International Air Transport Association PaxIS FY11/12)
(Source: International Air Transport Association PaxIS FY11/12)
London Airport Passengers by Type
Passengers (in millions)
Origin / Destination
Transfer
	 bettersolution.gatwickairport.com 5
Heathrow
Gatwick
Stansted
Luton
London City
Southend
16
54
33
1.20
18
0.00
10
0.01
3
0.03
0.05
0.00
Origin/Destination
Transfer
Europe 73
Passengers (in millions)
North America 12
Domestic 10
Africa 5
Far East 5
Middle East 3
Indian Sub-continent 3
Australasia 2
Caribbean 1
South  Central America 1
China 1
Europe 73
Passengers (in millions)
North America 12
Domestic 10
Africa 5
Far East 5
Middle East 3
Indian Sub-continent 3
Australasia 2
Caribbean 1
South  Central America 1
China 1
6
Some people suggest that a lack of ‘hub
capacity’ – which enables airlines to pool
demand from a range of destinations – is
a barrier to economic growth.
They claim that the lack of direct
connections to cities where there is currently
limited demand, such as a number in China,
is “something that the UK should be worried
about5
”.
They argue that capacity must be added
either at Heathrow, or a brand new ‘mega
hub’ built alongside the closure of Heathrow,
in order to ensure we can compete with
countries like France, Germany and the
Netherlands in terms of total number of
flights between China and the UK.
This is, at best, overly simplistic. The reason
why the UK is not directly connected to a
range of smaller cities on the Chinese
mainland today – and some other European
Countries are – has little to do with runways
at the UK’s largest airport being full. It is
almost entirely due to the lack of demand
to fly to these places from the UK.
The graphic to the right shows just how low
that demand is. Today, airlines could choose
to fly to some of these cities direct from
London, just as others do from France or
Germany where, in some cases, demand
is higher. But many do not, because the size
of the potential market does not warrant it.
Where demand to fly from London to
emerging economies exists, it is largely
being met.
A substantial proportion of the demand that
does exist is being met without the need for
more ‘hub capacity’ in London. Many of the
UK’s flights to emerging economies have
very few ‘transfer passengers’ on board
when they take off. For example, less than
5% of passengers flying from Heathrow to
Guangzhou today are transferring at the
London end6
.
Of those passengers that are using
Heathrow as a ‘hub’ airport, the vast
majority (76%) will fly with British Airways
or its One World airline alliance partners,
with only 6% of ‘transfers’ accounted for by
airlines within either the Star Alliance or the
Skyteam alliance7
.
Therefore, for many airlines serving London
– or planning to – ‘hub capacity’ is not
critical to whether they do, or do not, serve
direct routes to and from the city.
The reason why the UK is
not directly connected to
smaller cities in emerging
markets is due to the lack
of demand.
The evidence does not suggest that London’s connectivity
is synonymous with growth at its largest airport, or the
construction of a new mega hub.
The hub capacity myth
66 A better solution for London  the UK Connectivity, competition  certainty
bettersolution.gatwickairport.com 7
Comparative long haul demand to and from London:
Top 10 destinations vs China
bettersolution.gatwickairport.com 7
0 250 500 750 1000 1250 1500 1750 2000 2250 2500 2750 3000
New York (JFK)
Dubai
Hong Kong
Los Angeles
New York (EWR)
Boston
Bangkok
Orlando
Singapore
San Francisco
Beijing
Shanghai
Guangzhou
Chengdu
Xiamen
Fuzhou
Shenyang
Nanjing/Nanking
Chongqing
Wuhan
Dalian
Hangzhou
Qingdao
Changsha
Xi An Xianyang
Kunming
Harbin
Top 10
international
destinations
Key:
Passengers per day each way
17 Chinese
destinations
A better solution for London  the UK Connectivity, competition  certainty8
At Gatwick, all passengers are important
to us – whether flying directly into or from
the airport, or transferring through the
airport like the two million passengers
who do each year. The future needs of
both types of passengers must be
addressed. Our view is that you don’t need
to expand Heathrow or build a new ‘mega
hub’ to cater for their needs.
Aviation policy and transport infrastructure
decisions have consequences that last for
decades. In making such decisions, it is vital
to acknowledge tomorrow’s challenges.
In future, passengers will want to fly to new
destinations. With the growth of emerging
economies, we will see a greater proportion
of passenger demand to fly from London to
these places.
The way passengers use airports, and how
they transfer between flights at them, is
changing. Increasingly, passengers are now
‘self-transferring’ from low cost short haul,
or charter airlines, and on to separately-
owned full service long haul flights. In 2011,
nearly 800,000 passengers at Gatwick
were ‘self-transferring’ between separately
owned airlines8
.
With more than 24 million short haul
passengers a year, Gatwick already has the
UK’s largest short haul and domestic
network. We are connecting passengers to
many key destinations in Europe – from
Frankfurt to Istanbul – and across the UK
regions, including all the main Scottish
airports.
Our long haul network is second only
to Heathrow serving 38 long haul
destinations9
. We are starting to join these
networks together so that a passenger can
take a low cost flight from Edinburgh and
transfer seamlessly to a flight to Beijing.
Regardless of airline, a passenger will be
able to transfer quickly and efficiently from
one flight to the next. We are putting in
place new infrastructure to handle this
process.
Airlines themselves are also working far
more closely together, and not just within
the traditional ‘alliance’ structure.
How will people connect in the future?
LEFT: Gatwick has the
most short haul and
domestic destinations
of any UK airport and
serves many key long
haul routes.
RIGHT: Airlines have
placed significant
orders for Boeing’s
long-range 787
Dreamliner.
bettersolution.gatwickairport.com 9
Airlines plan to
serve long haul
routes using 787
Dreamliners and
A350s
Airline order books
show less demand
for ‘hubbing’ on
‘trunk routes’
Types and quantity of aircraft on order:
In particular, there has been substantial
growth in interline and code-share
agreements between low cost airlines and
long haul carriers. Around the world,
carriers such as WestJet in Canada, JetBlue
in the US, Virgin Australia and Jetstar in
Australia have already done this with larger
‘network’ carriers operating long
haul routes.
In particular, Jetblue has codeshare flights
with Lufthansa, Qantas, Japan Airlines and
American Airlines, as well as interlining
arrangements with 25 other airlines. These
arrangements enhance the profitability and
reach of the carriers, and enhance the
connecting options of passengers. This is
not just an emerging trend. It is increasingly
a major source of revenue. Etihad Airways,
which is not part of any airline alliance,
report that 19% of its revenues in 2012
originated from airline partnerships10
This has real implications for future runway
infrastructure in the UK. There will always
be a need for ‘transfer’ passengers, which
represent a small proportion of air
passengers, to support the commercial
viability of more marginal routes. But we
must be more innovative in how that need
is met. We should not base decisions on
new runway infrastructure on the way airline
business models work today. The trends
highlighted above are changing the way
the global aviation industry works.
The way passengers use airports in the
future will also reflect the nature of the
aircraft they fly on. Already airlines, which
plan decades ahead when they invest in
new aircraft, have signalled they are moving
away from supporting the traditional ‘hub
and spoke’ model that generates ‘transfer’
passengers. They have placed orders worth
billions for Boeing’s long-range 787
Dreamliner and Airbus A350s, more than
triple the orders for Airbus’s ‘superjumbo’
A380. Passengers will have access to more
direct flights to new destinations that are
further afield. London could increasingly be
bypassed as a transfer point. As a result, the
proportion of ‘transfer’ passengers at its
airports could fall even further.
787 Dreamliner
800
A350
617
A380
260 (90 with
one airline)
0 800 1600
Airlines plan to serve
direct long haul routes.
Order books show less
demand for ‘hubbing’
on ‘trunk routes’ and
more aircraft (787 and
A350) are being
ordered.
The way passengers
use airports is
changing. In 2011,
nearly 800,000
passengers at Gatwick
were ‘self-transferring’
between separately
owned airlines.
A better solution for London  the UK Connectivity, competition  certainty10
By the mid 2020s, a step change in
London’s airport capacity will be needed.
Although there is spare capacity at
London’s airports today, we do not believe
it will be sufficient to meet the growth in
demand we are likely to see in the next
decade or so. Excess capacity elsewhere
in the UK will not satisfy it either because
the demand from people living in the south
east, or wanting to travel to and from it,
is so high.
We believe there will be a need for new
runways at airports in the south east at
some point in the next decade. And we
must not leave it too late. If we wait until
all of London’s airports are almost full
before creating new capacity, we will put
the UK at a huge competitive disadvantage.
Our vision is for three competing major
London airports, each with two runways.
The competition that could follow would
lead to better connectivity, better service
quality and better value for money for both
passengers and airlines.
We also believe that the building of a
‘mega hub’ or an expanded Heathrow could
actually be detrimental to the UK and
passengers. The market power that has just
been reduced through the break-up of BAA
would be re-established. Fares would rise,
and the incentive to continually improve
service that real competition brings would
be removed.
We believe that London should follow
the model used by other global cities to
develop their airport systems. This
approach has proved extremely successful.
For example, Paris, Frankfurt, Istanbul,
New York, Tokyo, Los Angeles, Chicago,
Washington DC and many others each have
more than one major airport serving their
needs. Cities such as Beijing and Shanghai
are also pursuing this model. In fact, more
than half of world’s 40 busiest cities for air
travel have a multiple airport approach and
do not have ‘mega hubs’11
.
These global cities have the connectivity
they need, more passenger choice, better
resilience to disruption, and the distribution
of economic benefits and environmental
impacts across a wider area. Gatwick’s
vision has been tried and tested in the
world’s global economies.
However, the additional game changer for
London is the role of competition. Anyone
travelling through Gatwick can see for
themselves how the airport has been
transformed since BAA sold it in 2009.
More than £1 billion of investment has
supported our relentless focus on delivering
the best service for passengers. Our
ambition has been to deliver passenger
choice, convenience, outstanding customer
service and affordability. And crucially, we
are also delivering the new routes that
business and leisure travellers tell us they
want to use.
Gatwick’s vision
We believe that the best first step in delivering this vision
is to build the next runway at Gatwick.
•	 It will deliver the necessary capacity
and connectivity for a generation
•	 It will minimise environmental impacts
of expanded capacity
•	 It will help provide the best passenger
experience
•	 It will foster competition amongst
airports and airlines
•	 It is expected to have a viable business
case which avoids significant subsidy
from the public purse
•	 It will improve resilience of London’s
airports
•	 It is likely to be the most deliverable
of the available options
10 A better solution for London  the UK Connectivity, competition  certainty
bettersolution.gatwickairport.com 11bettersolution.gatwickairport.com 11
Gatwick already operates the busiest and
most efficient single runway in the world,
offering more destinations than any other
UK airport, and providing the most direct
rail connections and fastest train travel
into London’s West End and financial
districts of the capital’s major airports.
By the mid 2020s London will need more
runway capacity. However, we believe
there are opportunities to improve
efficiency, connectivity and the passenger
experience in the short and medium term.
Key to achieving these aims is to encourage
greater competition between London’s
airports by encouraging a more flexible
approach to pricing, service and quality
levels. We believe increasing competition in
this way will drive more connectivity and
innovation, attracting new airlines and
establishing essential new long haul routes.
Gatwick also has a clear focus on the need
to improve rail services. Although it already
has good rail links, the airport – as well as
some of its airlines – believe more
dedicated, high quality and value for money
services into London are fundamental to
encouraging greater use of its capacity. Key
to this is better, fit-for-purpose rolling stock
for the Gatwick Express. Gatwick believes
this is essential for meeting the specific
needs of airport passengers and current
airlines, but also for attracting new away-
based carriers that consider excellent
onward transport links as a key deciding
factor of where to fly.
In addition, Gatwick also believes that the
level of resilience offered by London’s
airport system should be reviewed,
especially in light of recent disruptions
caused by snow. The London airports, and
particularly Heathrow, should ensure they
have appropriate levels of flexibility in their
slot utilisation to ensure they can recover
quickly from disruption; giving certainty to
passengers that the UK can remain
consistently well connected and served.
While Gatwick operates an efficient service
on the airfield, other short and medium-
term options include the better use of local
air space, runway slots and the airport’s
night flight quota. Gatwick believes local
airspace can be better utilised to create a
more reliable end-to-end service for
passengers.
What would help maximise
connectivity in the short term?
Summary of short-medium term measures:
•	 Support for the delivery of enhanced rail
and road infrastructure for Gatwick
airport, including the provision of new
rolling stock for the Gatwick Express
•	 The promotion of competition as a way
of incentivising the best use of existing
runway capacity, and of encouraging
new developments
•	 Define an acceptable level of capacity
utilisation for major UK airports, with a
view to improved resilience
•	 Urge the UK Government to support the
European Parliament’s first reading
position during inter-institutional
negotiations on the EU Airports Package
and to implement the final agreed
regulation as soon as possible thereafter
•	 Recommend a systematic review of
remaining bilateral restrictions with a
view to reducing or eliminating
restrictions
•	 The retention of the existing night noise
limits at Gatwick
A better solution for London  the UK Connectivity, competition  certainty12
London Gatwick’s future role:
our emerging view
London Gatwick has laid out
what it believes should be the
key criteria that plans for any
new runway in the south east
should be judged upon.
Gatwick’s runway options work, which uses the Airports Commission sifting
criteria for runway expansion and our own assessment criteria, will form the
basis of our initial proposals.
We believe that the best option for the Airports Commission is to
recommend adding a second runway at Gatwick in the mid-2020s, followed
by another runway, possibly at Stansted, when the need arises.
Enabling Gatwick to grow would solve the connectivity issue for
a generation.
We have identified eight key tests to help the Airports Commission assess
the best options for new capacity around London. These are shown on the
left in the table on the following pages. On the right, we have shown how
Gatwick is already demonstrating it is the best fit against these criteria.
LEFT: Gatwick is connecting
passengers to the economies
which matter the most.
RIGHT: Any airport expansion
must be balanced with the
environmental considerations.
bettersolution.gatwickairport.com 13
Gatwick’s assessment criteria
Understanding and minimising the
environmental impacts of aviation on local
communities, particularly noise and air
quality, is key. The role of aviation and
airport expansion on climate change also
needs to be considered.
•	 The evidence shows that there simply isn’t the need for a ‘mega hub’
in London.
•	 Only 13% of passengers using London’s airports today are ‘hubbing’
or transferring on the same ticket to another flight elsewhere.
•	 The vast majority of passengers want to fly to and from London – not
through it. As such, London should be seen as the hub for UK air travel
– not one single airport.
•	 Transfer or ‘hub’ traffic will remain important for some routes – but how
passengers connect in the future will change. Evidence from around the
world shows a growth in partnerships between low cost airlines and long
haul carriers as an alternative to the traditional network carrier model.
•	 Gatwick has already demonstrated that it can provide connections to
the economies that matter with new direct routes to half of the most
important growth markets in the world12
.
•	 With more capacity, we can open more routes to more destinations.
A second runway at Gatwick could enable London to meet demand
until at least 2050.
•	 Our vision of three major airports each with two runways would spread the
environmental impacts of maintaining and growing the UK’s connectivity
to the world across the south east.
•	 Runway expansion, wherever it happens, will have both local and national
environmental impacts including noise, air quality and carbon dioxide
emissions. Gatwick will be very sensitive to local environmental concerns,
and if a second runway is recommended by the Commission, we will look
to use the best practices available to mitigate the adverse impacts of
additional aircraft.
•	 The number of people affected by a new runway would be very
significantly lower at Gatwick than at Heathrow.
•	 The environmental impact of a third Heathrow runway, let alone a fourth,
would be huge. Already, 243,000 people are adversely affected by noise
from Heathrow13
. The Department for Transport has highlighted how
Heathrow’s noise ‘footprint’ is currently larger than all other major western
European airports combined14
. This can only increase if Heathrow expands
with additional runway capacity.
•	 Gatwick Airport has never breached nitrogen dioxide limits and, based on
previous studies, would not expect to do so with the addition of a second
runway.
•	 Heathrow Airport regularly breaches the European limit for nitrogen
dioxide at monitoring sites around the airport. A third runway at Heathrow
would mean that 35,000 people would be exposed to levels above
legal limits15
.
Demand Capacity and Connectivity
Environmental impact
It is critical that we keep London and the
UK connected to the rest of the world by
providing capacity in time to meet the
needs of air passengers. It is vital therefore
that the Commission fully assesses what that
level of demand is in the UK, and for the
south east in particular, and how each
option can satisfy that demand.
A better solution for London  the UK Connectivity, competition  certainty14
Gatwick’s assessment criteria
Part of the rationale behind the break-up
of the BAA monopoly was to improve the
passenger experience. The role of
competition between independently owned
airports is therefore a new factor to be
assessed by the Commission. An assessment
should be made on the effects on airport
and airline competition on each expansion
option and the implications of that on
passengers with regard to air fares, quality
of service and passenger experience.
•	 Often, customers pay more to monopoly service providers than to
competitors. It is no different for airports. Already, we know that
dominant hub airports result in higher air fares, especially in the
absence of effective competition from other airports17
.
•	 Gatwick’s vision could provide real scope for true airport competition
to take root, which will encourage fares to fall and services to improve
everywhere.
Competition
Passengers should be central to this debate.
All options should be assessed against
whether they offer passengers the greatest
convenience and choice as they travel to
and through an airport.
•	 We believe passengers greatly value the ability to have a choice of
airport – whether for the connections provided, the quality of services
or having the convenience of using an airport near home or the office
(minimising travel times). A single mega hub (whether in the Estuary or at
Heathrow) would remove choice from the end-to-end passenger
experience and force a ‘one mega-size’ fits all approach.
•	 A truly competitive network of London airports will create even greater
incentives for airports to provide the travel experience that passengers
expect and the Competition Commission envisioned in 2009. Put simply,
if the experience is not good enough, passengers and airlines will ‘vote
with their feet’16
. In a competitive world, airports will do their utmost to
provide the very best experience for passengers.
End-to-end passenger experience
LEFT TO RIGHT: Passengers
want choice and convenience
- from transport links and
dedicated services suiting
their needs, to shops and
food outlets.
bettersolution.gatwickairport.com 15
The business case for any expansion option
is critical and options should be assessed
against the part they can play in providing
economic growth – locally and nationally.
The ability to finance any expansion option
should also be a key assessment criteria
with a focus on using private investments
to avoid significant subsidy from the public
purse.
•	 We are backed by a group of experienced shareholders and initial
estimates indicate that a new runway and airport facilities at Gatwick
could be funded privately. We would also share with the Government
a proportion of the cost of improved rail and road infrastructure.
Financial and economic factors
Airports have significant impacts on local
communities – positive and negative – and
these should be taken into account. The
social benefits of air travel should be
maximised, whilst minimising the impacts
on people and communities.
•	 Our vision of three major airports each with two runways would spread
the economic and social benefits, as well as any negative impacts, of
airport expansion across the south east rather than concentrating it in
one location.
•	 A mega hub runs the risk of concentrating all the associated economies
of an airport in one area, so would have negative impacts on existing
businesses and communities surrounding London’s airports.
Social and community issues
Any expansion option should include an
assessment of resilience, including how
extreme weather scenarios would be
accommodated in the expansion options
proposed.
•	 Concentrating new capacity in one place is a recipe for more travel
disruption.
•	 Gatwick’s vision would, by distributing new runway capacity around
different locations, result in less scope for disruption caused by, for
example, severe weather than if new capacity was concentrated in
one place.
•	 The situation where hundreds of flights are cancelled at Heathrow
premptively could, under Gatwick’s vision, be avoided in future.
  Resilience
A better solution for London  the UK Connectivity, competition  certainty16
The issue of deliverability is important
given the timetable that has been set for
the Commission and the fact that the three
major airports in the south east will be full
by the mid-2020s. It is vital that expansion
options are assessed against how quickly
and efficiently they can be delivered
through the planning and construction
phases.
•	 Gatwick is already the best connected airport by rail in the UK, and
connected to a major motorway.
•	 Much of the supporting infrastructure at Gatwick needed to ensure
passengers can access new runway capacity is in place or supported by
existing Government spending plans. Delivering Gatwick’s vision would
not require the movement of, or tunnelling under any motorways, the
reclaiming of any land from the sea, or the construction of any extension
to the London Underground network.
•	 Land has already been set aside for a new runway at Gatwick in
accordance with Government policy18
.
•	 In every sense, a second runway at Gatwick could be not just affordable
and sustainable, but deliverable as well. A decision to support expansion
at Heathrow would just result in more years of delay.
Deliverability
Gatwick’s assessment criteria
LEFT: Committed to
getting passengers away
on time.
BELOW: Land set aside for
a new runway at Gatwick.
To learn more about London Gatwick and its vision
please visit bettersolution.gatwickairport.com
On the site you’ll find further details on:
•	All our submissions to the Airports Commission
•	Information on the airport, its history and future plans
•	How we are competing for passengers
•	How passengers travel
•	Where we connect to
•	Gatwick and the economy
•	Gatwick and the environment
More information
1 
Airports Council International (ACI)  IATA PaxIS
Database.
2
Department for Transport’s Draft Aviation Policy
Framework.
3 
Civil Aviation Authority and Dft Passenger
Forecasts (January 2013).
4 
International Air Transport Association Passenger
Intelligence Service (PaxlS).
5 
Heathrow Airport, One hub or no hub
(November 2012).
6
Between September 2011-2012. This figure includes
a small % of passengers transferring at both ends of
the flight. International Air Transport Association
(IATA) PaxIS Database and OAG Schedule data
over the period.
7 
DIIO FMg Database.
8 
York Aviation, London Assembly Transport
Committee: Technical Advice and Support for
Investigation into Airport Capacity (April 2012).
9
OAG Schedule based on peak week in August 2013.
10 
http://centreforaviation.com/analysis/japan-
airlines-and-jetstar-japan-embrace-lcc-hybridity-
codesharing---and-reap-rewards-99499.
11
Airports Council International (ACI).
12
As identified in Goldman Sachs Asset Management,
It is time to re-define Emerging Markets, (January
2011).
13
Defined by number of people living within
Heathrow’s 57 Db Leq Noise contour and shown in
CAA, ERCD Report 1201, Noise Exposure Contours
for Heathrow Air 2011(September 2012).
14
Department for Transport, Draft Aviation Policy
Framework (July 2012) refers to Frankfurt, Paris
CDG, Amsterdam Schipol and Madrid.
15
Department for Transport, The Future
Development of Air Transport in the United
Kingdom: South East (February 2003).
16
Gatwick Airport, Airport Competition: Competing
to Grow and become London’s airport of choice,
(November 2011).
17
I. Kincaid and M. Tretheway, “The Effect of Market
Structure on Airline Prices: A Review
of Empirical Results: Journal of Air Law and
Commerce, Volume 70, Issue 3, Summer 2005.
18
Department for Transport, Aviation Policy
Framework, (March 2013).
bettersolution.gatwickairport.com

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Gatwick Vision Report

  • 1. bettersolution.gatwickairport.com 01 A better solution for London & the UK Connectivity, competition & certainty
  • 2. M11 M25 M4 M40 M25 M26 M20 M2 M23 M1 M3 GATWICK STANSTED HEATHROW LUTON LONDON CITY 1 3 46 7 5 Liverpool St Station City of London Westminster The West End Canary Wharf Paddington Station Victoria Station London Bridge St Pancras International 1 2 3 4 5 6 7 8 9 8 2 9 A competitive and resilient airports system could deliver: • The connectivity that London and the UK demands • True airport competition • More passenger choice, better service and lower fares • Better resilience to disruption • Less environmental impact than expanding Heathrow • An affordable, privately financed solution
  • 3. bettersolution.gatwickairport.com 1 There is already much debate about possible answers, but we believe it is important to understand the questions surrounding the airport capacity debate before jumping to a solution. We must consider the unique realities of the London market and, very importantly, what passengers want and need for the future. We need to understand the huge amount of change that has happened in both the airline and airport industries over the past 10 years, and what trends we see going forward. The Airports Commission is rightly looking forward, rather than simply reinforcing the past. Much is already changing in air travel – from the shift in traffic towards emerging markets, the emergence of huge new hub airports in the Gulf, through to the introduction of new aircraft which will help long-distance direct flights to bypass traditional hubs. Within London’s airports we have seen a transformation. The fact that the three largest are now separately owned, and are starting to compete, is a real game-changer. We must also understand how the market really works now. Today, 87% of all passengers using London’s airports are simply starting or ending their journeys at them. This proportion is likely to increase in the coming years. This means, despite what the proponents of creating a ‘mega hub’ at Heathrow or in the Thames Estuary might say, that the importance of ‘transfer’ or ‘hub’ passengers is exaggerated. Policy should be framed around the travel needs of all passengers and not dictated solely by those who only want to change planes when they fly through London. Transfer passengers are important. But they are very much in the minority, as are the routes that need their support. The evidence shows that today there simply isn’t the need for a ‘mega hub’ in London. As the Airports Commission goes back to the drawing board, and looks at all the options, they will need to ensure that any recommended solution is deliverable, environmentally sustainable, and has a strong business case behind it. Scope for a degree of political consensus is also key. Surrounding all this is the crucial need to deliver certainty to airlines, businesses and communities. Having started our detailed analysis in October 2012, a clear long-term vision for London and the UK which can meet these needs has emerged. Our vision is for three competing major London airports, each with two runways eventually, complemented by London City for business traffic, and Luton and London Southend for predominately leisure. The Airports Commission should recommend where the next single runway will be built and suggest where the next one should follow. In making that decision, the Commission will have to make recommendations based on clear selection criteria. I believe that the expansion of Stewart Wingate CEO London Gatwick Foreword by Stewart Wingate London enjoys world-class air links. It is one of the best- connected cities in the world, with 134 million passengers flying in and out each year1 . But while there is spare airport and terminal capacity right now, London’s status as one of the world’s most important air transport markets will not last unless we act soon. We believe London will need a new runway by the mid-2020s. 87% of passengers using London’s airports are simply starting or ending their journeys at them. 134m Each year 134 million passengers fly in and out of London.
  • 4. A better solution for London the UK Connectivity, competition certainty2 Foreword by Stewart Wingate Gatwick and, in time, perhaps Stansted as well, provides the best solution, and would solve the capacity issue for a generation. More than anything else, I want to see true passenger choice. So far, the needs of passengers have been largely lost in the aviation debate. They should be able to choose where they fly to and from, and who they fly with. In the longer term, capacity has to be matched to the passenger need. Quite rightly, they want better value fares, new destinations, higher quality airports and more convenient door-to-door journeys each and every time they travel. Our vision, based on true airport competition, can deliver those benefits. Gatwick has already invested more than £1 billion since the change of ownership in 2009. We’ve opened new direct routes to some of the fastest growing economies such as China, Russia, Vietnam, Turkey and Indonesia. In due course, there is likely to be a need to provide more regional capacity, thereby boosting UK connectivity from the regions. More competition will help to deliver the enhanced connectivity the UK economy needs. Where there is passenger demand, the market should be able to respond, and in an affordable way. There is huge potential for a new approach to air travel, but we do not believe that it should be at an unacceptable environmental cost. We just cannot see how mixed mode or additional runways at Heathrow can be justified against environmental criteria. Heathrow’s current noise ‘footprint’ is larger than all other western European ‘hub’ airports combined. There is now an opportunity to look to the future and develop an airport strategy which will provide benefits to the UK for decades to come. As the debate continues and we gather our evidence, we will publish our findings online at bettersolution. gatwickairport.com Gatwick looks forward to playing its part and doing the detailed work to support its vision of a competitive network of airports serving London and the rest of the UK. Stewart Wingate CEO London Gatwick 1billion Since 2009 over £1 billion has been invested in Gatwick, with one focus in mind – our passengers. BELOW: Gatwick is striving to deliver the best passenger experience now and for the future.
  • 5. bettersolution.gatwickairport.com 3 The connectivity that the UK needs Our vision would see all of London’s existing airports supporting growth in air travel to strategic destinations. Gatwick is already supporting new connections to China, Vietnam, Russia and Turkey. Our vision is not unique – many of the world’s large cities have more than one major airport, rather than a single ‘mega hub’, to deliver the air travel connections passengers want. More certainty We believe our solution is deliverable and will give passengers, communities and businesses the certainty they need. We are confident that, when all the evidence is taken into account, Gatwick will be the preferred option for the next runway. True competition leading to more passenger choice, better service and lower fares Reducing reliance on one dominant airport will give passengers a greater choice of carriers and destinations, and would lead to more competitive prices. Journey times to home or the office would also be shorter overall. Less environmental impact Three equally sized airports serving London would have a much lower environmental impact than simply expanding Heathrow – whose noise impact easily exceeds the combined impact of all the other hub airports in Western Europe2. With a second runway at Gatwick, there would still be significantly fewer people affected by noise than at Heathrow. That doesn’t mean Gatwick doesn’t take local community concerns about noise and air quality seriously – we do. The case for three airports with two runways It would deliver: An affordable, privately financed solution We are backed by a strong group of experienced shareholders and initial estimates indicate that a new runway and airport facilities at Gatwick could be funded privately and has a viable business case. We would also share with the Government a proportion of the cost of improved rail and road infrastructure. More economic benefits spread across the south east Having three equally sized, well-connected airports in London would help spread the economic benefits of airport expansion across the south east rather than concentrating it in one location. Greater resilience to disruption By spreading new capacity across different locations, rather than concentrating it all in one place, passengers at London’s airports would be less vulnerable to the effects of disruption at a single mega hub. Building on our successful airports Our vision means using all of London’s airports to their full potential, not closing any of them. We believe that the best first step in delivering this vision is to build the next runway at Gatwick. bettersolution.gatwickairport.com 3
  • 6. A better solution for London the UK Connectivity, competition certainty4 What is the situation today and what does the future hold? In the short term, London’s airport system has the capacity and connectivity needed to meet demand. Theoretically, London’s terminals could house 32% more passengers than they do already and its runways could accommodate around 25% more flights3 . In practice, no airport should choose to operate close to 100% of capacity if it wants to maintain some degree of resilience to disruption. New runway capacity needs to be available before this level of usage is reached across London. We know that in the 2020s, there will be a need for extra capacity. London is unique. We must also remember 87% of passengers using London’s airports are simply starting or ending their journeys at them4 . This kind of demand is known as ‘Origin and Destination’ (OD) within the aviation industry. By contrast, only 13% are ‘hubbing’ or transferring to another flight going elsewhere. This is because London is itself the largest single market for aviation in the world. Passengers want to fly to and from it. Not through it. As such, London should be seen as the hub for UK air travel – not one single airport. In terms of destinations, it is clear that established markets will continue to be very important to London’s airport passengers. Today, Europe, North America, and to a certain extent the Far East, the Middle East, and the Indian Sub-continent dominate in terms of places passengers actually want to fly to. Demand to fly to a range of emerging markets today is small in comparison, but it will also grow. Whilst today the UK is one of the best-connected countries in the world, we will need more direct links with key markets that are not currently being served. At Gatwick, we are already playing our part by opening new direct routes to fast- growing economies such as China, Indonesia, Russia, Turkey and Vietnam. We are achieving that because London is unique in terms of the size of its air travel market. Airlines want to fly to and from it. To put it bluntly, there are enough people who want to fly to the city directly from Beijing, Jakarta, Moscow, Istanbul, Hanoi and Ho Chi Min City for routes to be viable and in many cases frequent. ‘Hub capacity’ is not a precondition for routes to these countries. As a result, we are making the best use of existing capacity and delivering the direct connections needed to grow exports and boost inward investment and tourism from key markets. We will need more direct air links to ensure the UK competes. As Gatwick’s new routes show, a traditional ‘hub’ airport is not the only way to deliver these. The Airports Commission is rightly looking beyond how the aviation industry works today. In doing so, it is thinking beyond the traditional responses to the issue of airport capacity which have been looked at, and rejected, before. We need to get the questions right first and build the answers from there. The fundamental question should be: what will work for passengers and what are their future needs? 13% Only 13% of passengers at London’s airports are hubbing or transferring to another flight going elsewhere. LEFT: Gatwick has opened new direct routes to emerging markets such as Vietnam. RIGHT: Passengers want direct connections to and from London.
  • 7. bettersolution.gatwickairport.com 5 London Origin Destination Airport Passengers by Market (Source: International Air Transport Association PaxIS FY11/12) (Source: International Air Transport Association PaxIS FY11/12) London Airport Passengers by Type Passengers (in millions) Origin / Destination Transfer bettersolution.gatwickairport.com 5 Heathrow Gatwick Stansted Luton London City Southend 16 54 33 1.20 18 0.00 10 0.01 3 0.03 0.05 0.00 Origin/Destination Transfer Europe 73 Passengers (in millions) North America 12 Domestic 10 Africa 5 Far East 5 Middle East 3 Indian Sub-continent 3 Australasia 2 Caribbean 1 South Central America 1 China 1 Europe 73 Passengers (in millions) North America 12 Domestic 10 Africa 5 Far East 5 Middle East 3 Indian Sub-continent 3 Australasia 2 Caribbean 1 South Central America 1 China 1
  • 8. 6 Some people suggest that a lack of ‘hub capacity’ – which enables airlines to pool demand from a range of destinations – is a barrier to economic growth. They claim that the lack of direct connections to cities where there is currently limited demand, such as a number in China, is “something that the UK should be worried about5 ”. They argue that capacity must be added either at Heathrow, or a brand new ‘mega hub’ built alongside the closure of Heathrow, in order to ensure we can compete with countries like France, Germany and the Netherlands in terms of total number of flights between China and the UK. This is, at best, overly simplistic. The reason why the UK is not directly connected to a range of smaller cities on the Chinese mainland today – and some other European Countries are – has little to do with runways at the UK’s largest airport being full. It is almost entirely due to the lack of demand to fly to these places from the UK. The graphic to the right shows just how low that demand is. Today, airlines could choose to fly to some of these cities direct from London, just as others do from France or Germany where, in some cases, demand is higher. But many do not, because the size of the potential market does not warrant it. Where demand to fly from London to emerging economies exists, it is largely being met. A substantial proportion of the demand that does exist is being met without the need for more ‘hub capacity’ in London. Many of the UK’s flights to emerging economies have very few ‘transfer passengers’ on board when they take off. For example, less than 5% of passengers flying from Heathrow to Guangzhou today are transferring at the London end6 . Of those passengers that are using Heathrow as a ‘hub’ airport, the vast majority (76%) will fly with British Airways or its One World airline alliance partners, with only 6% of ‘transfers’ accounted for by airlines within either the Star Alliance or the Skyteam alliance7 . Therefore, for many airlines serving London – or planning to – ‘hub capacity’ is not critical to whether they do, or do not, serve direct routes to and from the city. The reason why the UK is not directly connected to smaller cities in emerging markets is due to the lack of demand. The evidence does not suggest that London’s connectivity is synonymous with growth at its largest airport, or the construction of a new mega hub. The hub capacity myth 66 A better solution for London the UK Connectivity, competition certainty
  • 9. bettersolution.gatwickairport.com 7 Comparative long haul demand to and from London: Top 10 destinations vs China bettersolution.gatwickairport.com 7 0 250 500 750 1000 1250 1500 1750 2000 2250 2500 2750 3000 New York (JFK) Dubai Hong Kong Los Angeles New York (EWR) Boston Bangkok Orlando Singapore San Francisco Beijing Shanghai Guangzhou Chengdu Xiamen Fuzhou Shenyang Nanjing/Nanking Chongqing Wuhan Dalian Hangzhou Qingdao Changsha Xi An Xianyang Kunming Harbin Top 10 international destinations Key: Passengers per day each way 17 Chinese destinations
  • 10. A better solution for London the UK Connectivity, competition certainty8 At Gatwick, all passengers are important to us – whether flying directly into or from the airport, or transferring through the airport like the two million passengers who do each year. The future needs of both types of passengers must be addressed. Our view is that you don’t need to expand Heathrow or build a new ‘mega hub’ to cater for their needs. Aviation policy and transport infrastructure decisions have consequences that last for decades. In making such decisions, it is vital to acknowledge tomorrow’s challenges. In future, passengers will want to fly to new destinations. With the growth of emerging economies, we will see a greater proportion of passenger demand to fly from London to these places. The way passengers use airports, and how they transfer between flights at them, is changing. Increasingly, passengers are now ‘self-transferring’ from low cost short haul, or charter airlines, and on to separately- owned full service long haul flights. In 2011, nearly 800,000 passengers at Gatwick were ‘self-transferring’ between separately owned airlines8 . With more than 24 million short haul passengers a year, Gatwick already has the UK’s largest short haul and domestic network. We are connecting passengers to many key destinations in Europe – from Frankfurt to Istanbul – and across the UK regions, including all the main Scottish airports. Our long haul network is second only to Heathrow serving 38 long haul destinations9 . We are starting to join these networks together so that a passenger can take a low cost flight from Edinburgh and transfer seamlessly to a flight to Beijing. Regardless of airline, a passenger will be able to transfer quickly and efficiently from one flight to the next. We are putting in place new infrastructure to handle this process. Airlines themselves are also working far more closely together, and not just within the traditional ‘alliance’ structure. How will people connect in the future? LEFT: Gatwick has the most short haul and domestic destinations of any UK airport and serves many key long haul routes. RIGHT: Airlines have placed significant orders for Boeing’s long-range 787 Dreamliner.
  • 11. bettersolution.gatwickairport.com 9 Airlines plan to serve long haul routes using 787 Dreamliners and A350s Airline order books show less demand for ‘hubbing’ on ‘trunk routes’ Types and quantity of aircraft on order: In particular, there has been substantial growth in interline and code-share agreements between low cost airlines and long haul carriers. Around the world, carriers such as WestJet in Canada, JetBlue in the US, Virgin Australia and Jetstar in Australia have already done this with larger ‘network’ carriers operating long haul routes. In particular, Jetblue has codeshare flights with Lufthansa, Qantas, Japan Airlines and American Airlines, as well as interlining arrangements with 25 other airlines. These arrangements enhance the profitability and reach of the carriers, and enhance the connecting options of passengers. This is not just an emerging trend. It is increasingly a major source of revenue. Etihad Airways, which is not part of any airline alliance, report that 19% of its revenues in 2012 originated from airline partnerships10 This has real implications for future runway infrastructure in the UK. There will always be a need for ‘transfer’ passengers, which represent a small proportion of air passengers, to support the commercial viability of more marginal routes. But we must be more innovative in how that need is met. We should not base decisions on new runway infrastructure on the way airline business models work today. The trends highlighted above are changing the way the global aviation industry works. The way passengers use airports in the future will also reflect the nature of the aircraft they fly on. Already airlines, which plan decades ahead when they invest in new aircraft, have signalled they are moving away from supporting the traditional ‘hub and spoke’ model that generates ‘transfer’ passengers. They have placed orders worth billions for Boeing’s long-range 787 Dreamliner and Airbus A350s, more than triple the orders for Airbus’s ‘superjumbo’ A380. Passengers will have access to more direct flights to new destinations that are further afield. London could increasingly be bypassed as a transfer point. As a result, the proportion of ‘transfer’ passengers at its airports could fall even further. 787 Dreamliner 800 A350 617 A380 260 (90 with one airline) 0 800 1600 Airlines plan to serve direct long haul routes. Order books show less demand for ‘hubbing’ on ‘trunk routes’ and more aircraft (787 and A350) are being ordered. The way passengers use airports is changing. In 2011, nearly 800,000 passengers at Gatwick were ‘self-transferring’ between separately owned airlines.
  • 12. A better solution for London the UK Connectivity, competition certainty10 By the mid 2020s, a step change in London’s airport capacity will be needed. Although there is spare capacity at London’s airports today, we do not believe it will be sufficient to meet the growth in demand we are likely to see in the next decade or so. Excess capacity elsewhere in the UK will not satisfy it either because the demand from people living in the south east, or wanting to travel to and from it, is so high. We believe there will be a need for new runways at airports in the south east at some point in the next decade. And we must not leave it too late. If we wait until all of London’s airports are almost full before creating new capacity, we will put the UK at a huge competitive disadvantage. Our vision is for three competing major London airports, each with two runways. The competition that could follow would lead to better connectivity, better service quality and better value for money for both passengers and airlines. We also believe that the building of a ‘mega hub’ or an expanded Heathrow could actually be detrimental to the UK and passengers. The market power that has just been reduced through the break-up of BAA would be re-established. Fares would rise, and the incentive to continually improve service that real competition brings would be removed. We believe that London should follow the model used by other global cities to develop their airport systems. This approach has proved extremely successful. For example, Paris, Frankfurt, Istanbul, New York, Tokyo, Los Angeles, Chicago, Washington DC and many others each have more than one major airport serving their needs. Cities such as Beijing and Shanghai are also pursuing this model. In fact, more than half of world’s 40 busiest cities for air travel have a multiple airport approach and do not have ‘mega hubs’11 . These global cities have the connectivity they need, more passenger choice, better resilience to disruption, and the distribution of economic benefits and environmental impacts across a wider area. Gatwick’s vision has been tried and tested in the world’s global economies. However, the additional game changer for London is the role of competition. Anyone travelling through Gatwick can see for themselves how the airport has been transformed since BAA sold it in 2009. More than £1 billion of investment has supported our relentless focus on delivering the best service for passengers. Our ambition has been to deliver passenger choice, convenience, outstanding customer service and affordability. And crucially, we are also delivering the new routes that business and leisure travellers tell us they want to use. Gatwick’s vision We believe that the best first step in delivering this vision is to build the next runway at Gatwick. • It will deliver the necessary capacity and connectivity for a generation • It will minimise environmental impacts of expanded capacity • It will help provide the best passenger experience • It will foster competition amongst airports and airlines • It is expected to have a viable business case which avoids significant subsidy from the public purse • It will improve resilience of London’s airports • It is likely to be the most deliverable of the available options 10 A better solution for London the UK Connectivity, competition certainty
  • 13. bettersolution.gatwickairport.com 11bettersolution.gatwickairport.com 11 Gatwick already operates the busiest and most efficient single runway in the world, offering more destinations than any other UK airport, and providing the most direct rail connections and fastest train travel into London’s West End and financial districts of the capital’s major airports. By the mid 2020s London will need more runway capacity. However, we believe there are opportunities to improve efficiency, connectivity and the passenger experience in the short and medium term. Key to achieving these aims is to encourage greater competition between London’s airports by encouraging a more flexible approach to pricing, service and quality levels. We believe increasing competition in this way will drive more connectivity and innovation, attracting new airlines and establishing essential new long haul routes. Gatwick also has a clear focus on the need to improve rail services. Although it already has good rail links, the airport – as well as some of its airlines – believe more dedicated, high quality and value for money services into London are fundamental to encouraging greater use of its capacity. Key to this is better, fit-for-purpose rolling stock for the Gatwick Express. Gatwick believes this is essential for meeting the specific needs of airport passengers and current airlines, but also for attracting new away- based carriers that consider excellent onward transport links as a key deciding factor of where to fly. In addition, Gatwick also believes that the level of resilience offered by London’s airport system should be reviewed, especially in light of recent disruptions caused by snow. The London airports, and particularly Heathrow, should ensure they have appropriate levels of flexibility in their slot utilisation to ensure they can recover quickly from disruption; giving certainty to passengers that the UK can remain consistently well connected and served. While Gatwick operates an efficient service on the airfield, other short and medium- term options include the better use of local air space, runway slots and the airport’s night flight quota. Gatwick believes local airspace can be better utilised to create a more reliable end-to-end service for passengers. What would help maximise connectivity in the short term? Summary of short-medium term measures: • Support for the delivery of enhanced rail and road infrastructure for Gatwick airport, including the provision of new rolling stock for the Gatwick Express • The promotion of competition as a way of incentivising the best use of existing runway capacity, and of encouraging new developments • Define an acceptable level of capacity utilisation for major UK airports, with a view to improved resilience • Urge the UK Government to support the European Parliament’s first reading position during inter-institutional negotiations on the EU Airports Package and to implement the final agreed regulation as soon as possible thereafter • Recommend a systematic review of remaining bilateral restrictions with a view to reducing or eliminating restrictions • The retention of the existing night noise limits at Gatwick
  • 14. A better solution for London the UK Connectivity, competition certainty12 London Gatwick’s future role: our emerging view London Gatwick has laid out what it believes should be the key criteria that plans for any new runway in the south east should be judged upon. Gatwick’s runway options work, which uses the Airports Commission sifting criteria for runway expansion and our own assessment criteria, will form the basis of our initial proposals. We believe that the best option for the Airports Commission is to recommend adding a second runway at Gatwick in the mid-2020s, followed by another runway, possibly at Stansted, when the need arises. Enabling Gatwick to grow would solve the connectivity issue for a generation. We have identified eight key tests to help the Airports Commission assess the best options for new capacity around London. These are shown on the left in the table on the following pages. On the right, we have shown how Gatwick is already demonstrating it is the best fit against these criteria. LEFT: Gatwick is connecting passengers to the economies which matter the most. RIGHT: Any airport expansion must be balanced with the environmental considerations.
  • 15. bettersolution.gatwickairport.com 13 Gatwick’s assessment criteria Understanding and minimising the environmental impacts of aviation on local communities, particularly noise and air quality, is key. The role of aviation and airport expansion on climate change also needs to be considered. • The evidence shows that there simply isn’t the need for a ‘mega hub’ in London. • Only 13% of passengers using London’s airports today are ‘hubbing’ or transferring on the same ticket to another flight elsewhere. • The vast majority of passengers want to fly to and from London – not through it. As such, London should be seen as the hub for UK air travel – not one single airport. • Transfer or ‘hub’ traffic will remain important for some routes – but how passengers connect in the future will change. Evidence from around the world shows a growth in partnerships between low cost airlines and long haul carriers as an alternative to the traditional network carrier model. • Gatwick has already demonstrated that it can provide connections to the economies that matter with new direct routes to half of the most important growth markets in the world12 . • With more capacity, we can open more routes to more destinations. A second runway at Gatwick could enable London to meet demand until at least 2050. • Our vision of three major airports each with two runways would spread the environmental impacts of maintaining and growing the UK’s connectivity to the world across the south east. • Runway expansion, wherever it happens, will have both local and national environmental impacts including noise, air quality and carbon dioxide emissions. Gatwick will be very sensitive to local environmental concerns, and if a second runway is recommended by the Commission, we will look to use the best practices available to mitigate the adverse impacts of additional aircraft. • The number of people affected by a new runway would be very significantly lower at Gatwick than at Heathrow. • The environmental impact of a third Heathrow runway, let alone a fourth, would be huge. Already, 243,000 people are adversely affected by noise from Heathrow13 . The Department for Transport has highlighted how Heathrow’s noise ‘footprint’ is currently larger than all other major western European airports combined14 . This can only increase if Heathrow expands with additional runway capacity. • Gatwick Airport has never breached nitrogen dioxide limits and, based on previous studies, would not expect to do so with the addition of a second runway. • Heathrow Airport regularly breaches the European limit for nitrogen dioxide at monitoring sites around the airport. A third runway at Heathrow would mean that 35,000 people would be exposed to levels above legal limits15 . Demand Capacity and Connectivity Environmental impact It is critical that we keep London and the UK connected to the rest of the world by providing capacity in time to meet the needs of air passengers. It is vital therefore that the Commission fully assesses what that level of demand is in the UK, and for the south east in particular, and how each option can satisfy that demand.
  • 16. A better solution for London the UK Connectivity, competition certainty14 Gatwick’s assessment criteria Part of the rationale behind the break-up of the BAA monopoly was to improve the passenger experience. The role of competition between independently owned airports is therefore a new factor to be assessed by the Commission. An assessment should be made on the effects on airport and airline competition on each expansion option and the implications of that on passengers with regard to air fares, quality of service and passenger experience. • Often, customers pay more to monopoly service providers than to competitors. It is no different for airports. Already, we know that dominant hub airports result in higher air fares, especially in the absence of effective competition from other airports17 . • Gatwick’s vision could provide real scope for true airport competition to take root, which will encourage fares to fall and services to improve everywhere. Competition Passengers should be central to this debate. All options should be assessed against whether they offer passengers the greatest convenience and choice as they travel to and through an airport. • We believe passengers greatly value the ability to have a choice of airport – whether for the connections provided, the quality of services or having the convenience of using an airport near home or the office (minimising travel times). A single mega hub (whether in the Estuary or at Heathrow) would remove choice from the end-to-end passenger experience and force a ‘one mega-size’ fits all approach. • A truly competitive network of London airports will create even greater incentives for airports to provide the travel experience that passengers expect and the Competition Commission envisioned in 2009. Put simply, if the experience is not good enough, passengers and airlines will ‘vote with their feet’16 . In a competitive world, airports will do their utmost to provide the very best experience for passengers. End-to-end passenger experience LEFT TO RIGHT: Passengers want choice and convenience - from transport links and dedicated services suiting their needs, to shops and food outlets.
  • 17. bettersolution.gatwickairport.com 15 The business case for any expansion option is critical and options should be assessed against the part they can play in providing economic growth – locally and nationally. The ability to finance any expansion option should also be a key assessment criteria with a focus on using private investments to avoid significant subsidy from the public purse. • We are backed by a group of experienced shareholders and initial estimates indicate that a new runway and airport facilities at Gatwick could be funded privately. We would also share with the Government a proportion of the cost of improved rail and road infrastructure. Financial and economic factors Airports have significant impacts on local communities – positive and negative – and these should be taken into account. The social benefits of air travel should be maximised, whilst minimising the impacts on people and communities. • Our vision of three major airports each with two runways would spread the economic and social benefits, as well as any negative impacts, of airport expansion across the south east rather than concentrating it in one location. • A mega hub runs the risk of concentrating all the associated economies of an airport in one area, so would have negative impacts on existing businesses and communities surrounding London’s airports. Social and community issues Any expansion option should include an assessment of resilience, including how extreme weather scenarios would be accommodated in the expansion options proposed. • Concentrating new capacity in one place is a recipe for more travel disruption. • Gatwick’s vision would, by distributing new runway capacity around different locations, result in less scope for disruption caused by, for example, severe weather than if new capacity was concentrated in one place. • The situation where hundreds of flights are cancelled at Heathrow premptively could, under Gatwick’s vision, be avoided in future. Resilience
  • 18. A better solution for London the UK Connectivity, competition certainty16 The issue of deliverability is important given the timetable that has been set for the Commission and the fact that the three major airports in the south east will be full by the mid-2020s. It is vital that expansion options are assessed against how quickly and efficiently they can be delivered through the planning and construction phases. • Gatwick is already the best connected airport by rail in the UK, and connected to a major motorway. • Much of the supporting infrastructure at Gatwick needed to ensure passengers can access new runway capacity is in place or supported by existing Government spending plans. Delivering Gatwick’s vision would not require the movement of, or tunnelling under any motorways, the reclaiming of any land from the sea, or the construction of any extension to the London Underground network. • Land has already been set aside for a new runway at Gatwick in accordance with Government policy18 . • In every sense, a second runway at Gatwick could be not just affordable and sustainable, but deliverable as well. A decision to support expansion at Heathrow would just result in more years of delay. Deliverability Gatwick’s assessment criteria LEFT: Committed to getting passengers away on time. BELOW: Land set aside for a new runway at Gatwick.
  • 19. To learn more about London Gatwick and its vision please visit bettersolution.gatwickairport.com On the site you’ll find further details on: • All our submissions to the Airports Commission • Information on the airport, its history and future plans • How we are competing for passengers • How passengers travel • Where we connect to • Gatwick and the economy • Gatwick and the environment More information 1 Airports Council International (ACI) IATA PaxIS Database. 2 Department for Transport’s Draft Aviation Policy Framework. 3 Civil Aviation Authority and Dft Passenger Forecasts (January 2013). 4 International Air Transport Association Passenger Intelligence Service (PaxlS). 5 Heathrow Airport, One hub or no hub (November 2012). 6 Between September 2011-2012. This figure includes a small % of passengers transferring at both ends of the flight. International Air Transport Association (IATA) PaxIS Database and OAG Schedule data over the period. 7 DIIO FMg Database. 8 York Aviation, London Assembly Transport Committee: Technical Advice and Support for Investigation into Airport Capacity (April 2012). 9 OAG Schedule based on peak week in August 2013. 10 http://centreforaviation.com/analysis/japan- airlines-and-jetstar-japan-embrace-lcc-hybridity- codesharing---and-reap-rewards-99499. 11 Airports Council International (ACI). 12 As identified in Goldman Sachs Asset Management, It is time to re-define Emerging Markets, (January 2011). 13 Defined by number of people living within Heathrow’s 57 Db Leq Noise contour and shown in CAA, ERCD Report 1201, Noise Exposure Contours for Heathrow Air 2011(September 2012). 14 Department for Transport, Draft Aviation Policy Framework (July 2012) refers to Frankfurt, Paris CDG, Amsterdam Schipol and Madrid. 15 Department for Transport, The Future Development of Air Transport in the United Kingdom: South East (February 2003). 16 Gatwick Airport, Airport Competition: Competing to Grow and become London’s airport of choice, (November 2011). 17 I. Kincaid and M. Tretheway, “The Effect of Market Structure on Airline Prices: A Review of Empirical Results: Journal of Air Law and Commerce, Volume 70, Issue 3, Summer 2005. 18 Department for Transport, Aviation Policy Framework, (March 2013).