Heathrow’s own goal on airport expansion

http://www.theguardian.com/world/2014/nov/19/heathrow-own-goal-on-airport-expansion

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Heathrow’s chief executive, John Holland-Kaye, believes that if we expand the most expensive, noisiest and most indebted airport in Europe, and reduce competition in the process, then ticket prices for consumers will decline (Letters, 17 November). I wonder how many economists would agree. He also believes we should reinforce Heathrow’s dominant position in the freight market, a legacy of its previous position as the effective controller of airport capacity in the London area. In the wake of an inquiry into competition and the national interest in the sector just five years old, this is indeed ambitious. Competition delivers lower fares, increased choice and better service, and improves resilience, both in terms of the economy and in terms of national security. Competition in the airport sector is one of the great successes of recent aviation policy – and one we should reinforce, without nostalgia for the previous monopoly.

He also makes much of the larger economic benefit the Airports Commission says an expanded Heathrow would bring, though the commission itself advises us to treat these numbers with caution. More to the point, any analysis of economic benefits is only worthwhile if the airport can actually be built, not overwhelmed by its cost, complexity and environmental impact, as Heathrow is sure to be. In contrast, a new runway at Gatwick can be open by 2025 at a fraction of the environmental cost and without a penny from the taxpayer.Stewart Wingate Chief executive, Gatwick airport

• Could there have been a sadder and more telling indictment of modern Britain than John Holland-Kaye’s analysis of Heathrow’s future role. He trots out selected statistics and fills the spaces with unsubstantiated assertions to ensure that Heathrow’s predominance over all comers reads like the Saturday afternoon football results – Heathrow 5 Gatwick et al 0. This jingoistic flag-waving is unbecoming around a critical national issue that arguably affects everyone through its environmental, economic, social, commercial, industrial and international aspects. Our country needs a more cohesive, considered and more carefully managed national airport/transport plan than the madcap private enterprise, free market, “we are the champions of the world” envisaged by Holland-Kaye. But then maybe he is merely reflecting his political masters in Westminster.Tony BealeNottingham