Britain’s airport crisis will cost £100bn in the next 20 years: Standard

Posted: May 21, 2012 in Airlines, Aviation & Airports (General News), Europe, Heathrow
Tags: , , , , , , , ,

[Evening Standard] Britain will miss out on more than £100 billion over the next two decades if the Government ignores London’s “shocking” airport crisis, ministers were warned today.

Chinese passenger jet manufacturer COMAC decided to locate its European base in Paris, not London, because of superior links at Charles de Gaulle airport.

Chinese passenger jet manufacturer COMAC decided to locate its European base in Paris, not London, because of superior links at Charles de Gaulle airport. Photo: Wikipedia

Failure to build more runways to link the capital with the world’s rising economic powers will wreak huge damage on the country’s already stretched finances, according to new analysis.

The report, originally commissioned by Heathrow owner BAA, is the most in-depth on the subject so far. It comes amid growing alarm that London could become “cut off” from countries such as China and Brazil.

The Standard has learned Chinese passenger jet manufacturer COMAC decided to locate its European base in Paris, not London, because of superior links at Charles de Gaulle airport.

David Cameron and George Osborne are under pressure to sort out the issue. On Thursday, a group of Conservative MPs will publish a book, The Growth Factory, on the need for an industrial strategy, devoting a chapter to the danger of leaving aviation as it is. And a senior economist warned: “if you don’t have the capacity, you’re stuffed.”

The detail of the report, by consultancy Oxford Economics, has emerged as the Government prepares a consultation on aviation policy. The study concludes British economic growth will lag far behind its full potential if no new runways are built, and there will be “a substantial economic impact in both the long and medium terms.” This “GDP gap” would reach £8.5 billion a year by 2021, it is claimed.

And even if the gap gets no worse in the 2020s, the cumulative loss of national income by 2028 would top £100 billion, the study predicts. That is twice the estimated £50 billion cost of building a new airport in the Thames estuary, and more than……

Read the full story at The Evening Standard….


Evening Standard
21 May 2012


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