BAA report says Heathrow falling further behind competitors
18.09.11
The Government's aviation policy faces fresh criticism this week when a report commissioned by BAA will reveal that Heathrow is falling further behind its European competitors in the battle for lucrative routes to emerging markets, the Telegraph reports today. The report will show that the value of business trade to emerging markets with a direct flight link to the UK is 20 times higher than to those markets where there is no link, adding that the value of the trade potential being threatened could run to billions of pounds.
The Frontier Economics report will argue that hub-airports, such as Heathrow, are vital to promoting economic growth. Because of the amount of through traffic, it means that many more flights to emerging market destinations are economically viable. It will add that the UK is losing out to Paris Charles de Gaulle and Frankfurt airports, which now offer many more direct routes to major cities in China.
The report argues that 25 percent of all economic growth by 2016 will come from China and that in the next decade half of all economic growth will come from emerging markets. China itself is building 97 new airports to service its fast-growing cities. It is intended to put further pressure on David Cameron and the aviation minister, Theresa Villiers, who do not support the building of new runways at Heathrow despite it being the UK's only leading international hub airport.
The Government is currently undertaking a review of its aviation policy and many business leaders believe that it should reverse its decision on Heathrow.
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