It’s official, BAA must sell two of its UK airports: Stansted and either Edinburgh or Glasgow, after the Competition Commission (CC) today announced its final ruling after its provisional view was published in March.

BAA, which sold Gatwick Airport in 2009, will now have three months before the Stansted sales process begins, or sooner if it accepts the ruling – Stansted is to be sold first as it handles more passengers than either of Glasgow or Edinburgh Airports.

Today’s announcement marks the possible end of a long-running battle between the CC and BAA, which started in March 2009 when the CC ordered the sale of three BAA airports. BAA appealed, and in December 2009 the Competition Appeal Tribunal (CAT) found that BAA’s application for review was successful on one ground. The CC then appealed against the CAT’s decision and the Court of Appeal upheld the CC’s Appeal and the original findings of the CC’s report were restored. In February 2011, the Supreme Court refused to grant BAA permission to another appeal.

Chairman of the BAA Remedies Implementation Group, Peter Freeman, said: “We hope that the sales can now proceed without delay so that passengers and airlines can start to enjoy the benefits of greater competition.

“Our report has been challenged, reviewed and upheld and it is clear that the original decision to require BAA to divest three airports remains the right one for customers. “It has been a long process whilst BAA has challenged the decision—quite understandably given its significance. However, both we and the courts have now exhaustively re-examined the case for the sales and found it to be sound so there are no grounds for delaying further.”

In response to the ruling, BAA Chief Executive Colin Matthews said: “We are dismayed that the Competition Commission’s final decision still requires BAA to sell Stansted and either Glasgow or Edinburgh airport. The Competition Commission has not recognised that the world and BAA have changed. This decision would damage our company which is investing strongly in UK jobs and growth. We have a responsibility to protect our shareholders’ investment and we will now consider a judicial review of the Competition Commission’s decision.”

A campaign to persuade the Chancellor to drop planned hikes in the tax levied on all flights leaving the UK was launched last Monday at airports across the country as a new poll is released showing 3 out of 4 people think that Air Passenger Duty (APD) should not go up in the next Budget. Of those saying APD should not go up 49 per cent said APD should be reduced. Only 6 per cent said APD should be increased.

The Chancellor announced in this year’s Budget that APD will rise by double inflation in 2012.

The ‘Hands off our Holiday’ campaign, backed by the Airport Operators Association (AOA), Board of Airline Representatives in the UK (BAR-UK), and the British Air Transport Association (BATA) is urging people to email their MP via the website www.handsoffourholiday.com and to tweet their support for the hikes to be abandoned using the hashtag #handsoffourhols.

The poll, carried out by Opinium Research for the Hands off our Holiday campaign also shows that nearly 4 out of 5 people were unaware of the plans to further increase the tax by double inflation.

Commenting on the campaign, Darren Caplan, Chief Executive of the AOA, said: “Our message to the Chancellor is that enough is enough. Air Passenger Duty has already gone up by 325% on long haul flights and 140% on short haul flights in the last five years. Family finances are under great pressure at the moment and most people save hard all year for their holiday. Working families deserve a break.”

Mike Carrivick, Chief Executive of BAR-UK, added: “The UK already has the highest rate of flight tax in the world. Why should families be discriminated against for wanting to fly off on a hard-earned break once a year?”

Simon Buck, Chief Executive of BATA said: “The government already takes nearly £3bn in tax from passengers. This is more than the tax on the banking industry. Most people simply aren’t aware how much flight tax they pay. The government should come clean about this stealth tax and drop the hikes planned for next year.”

As the Scottish school holidays begin, Aberdeen Airport is bracing itself for a huge influx of passengers and issuing a reminder about the liquids in hand luggage rules.

Around 35,400 people were expected to pass through Aberdeen Airport this weekend to destinations such as Palma de Mallorca, Amsterdam, Paris, and the London airports.

George Cowie is the Head of Security and Terminal Operations. He said “A great deal of work goes into planning for the summer get-away. As budgets remain tight we appreciate that this may be families only break of the year and we want to make sure that it is a smooth and enjoyable one. My thanks go out to everyone at the airport who has worked so hard to ensure that we can deal with the influx of passengers.

“However it is astonishing to see the quantities of liquids we are forced to take from passengers, even 5 years after the liquids restrictions were brought in. Our security teams continue to find oversized liquids, gels and pastes in hand luggage which we are have to remove from them, and this causes upset for everyone involved. Passengers, if they take some time to prepare for their journey through the terminal, really can make their whole departure much smoother and more relaxed.

“Any liquids must be in containers of 100mls or less and be put into a clear re-sealable plastic bag which is then taken out of hand luggage for screening. And it doesn’t just have to be bottles of water, the same rules apply to everything from shampoos to make up to perfume to deodorant. We have even on occasions had to take things like expensive whisky and even jars of jam from passengers hand luggage because they are over 100mls.

“My best advice – if in doubt put it in your hold baggage. A bit of planning in advance can speed up the journey through security for you, your family and others waiting to depart.”

A planned strike by UK Border Agency staff is likely to affect passengers arriving at some of the UK airports.

The 24-hour strike is scheduled to start this evening, Wednesday 29 June 2011 – start times vary at different airports due to shift patterns.

The Border Agency has issued the following advice to passengers arriving in the UK:

Around 70% of Border Agency staff are members of the Public and Commercial Services Union (PCS).

Lufthansa has today unveiled a new service from Aberdeen to Frankfurt which will offer a quick and easy connection into Lufthansa’s ‘Gateway to the World’ for both business and leisure travellers in the north-east of Scotland.

The new three times a day service to Lufthansa’s Frankfurt hub will commence on 30th October 2011 to coincide with the start of the Winter 2011/12 timetable. The timings of the new flights, operated with modern and fuel-efficient, 100-seater Embraer E190 aircraft in a two class configuration, have been scheduled to enable passengers to access the quickest onward connections to Lufthansa’s worldwide network which currently offers 13,304 flights a week to 211 destinations in 84 countries.

“This new service from Europe’s oil and energy capital is a direct response to business traveller demand and will strengthen Lufthansa’s position in the world’s key oil and energy markets where we serve almost 80 destinations in Europe, Africa, Middle East, Asia and the Americas “, said Marianne Sammann, Lufthansa General Manager UK and Ireland. “Business travellers based in the north-east of Scotland will now be able to take advantage of Lufthansa’s reputation for punctuality and efficiency from their local airport. We have ensured that the timetable provides excellent connections to both our European and world-wide network from our Frankfurt hub.

“Furthermore, the new Lufthansa connection reaffirms our commitment to our customers in Scotland, not only enhancing Lufthansa’s existing Scottish network of daily flights from Edinburgh to Frankfurt and summer seasonal services from Edinburgh and Inverness to Dusseldorf, but also complementing the existing flight network from Aberdeen operated by bmi, British Midland International, part of the Lufthansa Passenger Airline Group.

Aberdeen Airport Managing Director Derek Provan praised the announcement. He said: “This is fantastic news. It will mean a lot for our passengers and a great deal of work has gone into securing this service, which reflects feedback from the business and leisure communities around the services they require from Aberdeen Airport.

“The announcement yet again shows how positive the future is looking. The runway extension project was a key catalyst in Lufthansa making their decision and we hope that the works can encourage many more new airlines to come on-board in future.

“We look forward to welcoming Lufthansa to Aberdeen Airport later this year, and I have every confidence that this will be a long and positive relationship.”

A group of leading North East business figures have joined together to campaign against proposals for changes to a taxation system that they claim could have a damaging effect on the whole region.

The groups, made up of Aberdeen Airport, it’s Consultative Committee, ACSEF, NESTRANS, Aberdeen City Council, Aberdeenshire Council, the Chamber of Commerce, SCDI and airline Eastern Airways, have written a joint letter to the Treasury – concerned about the possible impact to the region of changes in APD.

APD, or Air Passenger Duty, is a tax levied on passengers departing from UK airports. In March, following the most recent Budget announcements, the Government agreed to “delay” a rise in APD and to launch a new consultation into possible changes.

Among these changes, the potential inclusion of helicopters in APD, which it is estimated could cost the energy sector as much as £168 million a year*.

The group has submitted a regional response, to show the impact of such proposed changes on the whole region and not exclusively on particular sectors.

In the letter the group make it clear that they feel strongly that any helicopter serving the North Sea energy industry should be exempt and this should be written into the appropriate definition of business jets that is being sought. The response also points out that consideration should be given to a preferential aviation tax rate for regions in the UK without a viable alternative to air travel.

In the third of their specific points the group have called for APD powers to be devolved to the Scottish Government. The group stresses that would come with a firm commitment that the Holyrood Government would utilise such new powers in the best interests of the Scottish passenger and with the aim of maintaining and then enhancing the competitive position of Scotland.

Aberdeen Airport Managing Director Derek Provan said: “A York Aviation report commissioned earlier this year warns of a potential drop of around 1.2 million passengers across Scotland over three years, should APD increase as it has been. A drop in demand on this scale could undermine the long term viability of some routes, and harm the prospects of further route development. This, in turn, will have implications for Scotland’s business competitiveness and inbound tourism potential. The measures proposed by the Scottish Government would lessen this impact.”

Bob Collier, Chief Executive of Aberdeen & Grampian Chamber of Commerce said: “This is an issue which is causing widespread concern throughout the UK and we are in contact with colleagues from as far afield as Jersey and Northern Ireland chambers of commerce who are also dependent on air travel to sustain their economies. They are also responding to the consultation pointing out the adverse impact this will have. Regional airports already face enough problems in maintaining connectivity to the London hubs without an additional burden of more taxation.”

Gordon McIntosh, the Director of Enterprise, Planning and Infrastructure at Aberdeen City Council said: “Helicopters are effectively the offshore North Sea Oil and Gas industry’s way to get to work and are a fundamental part of the North East of Scotland transport infrastructure”.

Peter Smart, chairman of the airport consultative committee adds: ‘We were encouraged that the chairmen of all the main airport consultative committees in the UK agreed that off-shore helicopter flights should continue to be exempt from APD, when we met in Aberdeen recently.”

Chris Holliday, Eastern Airways’ Chief Operating Officer, said: “As the largest fixed wing operator at Aberdeen, we support the steps being taken by North East Scotland organisations, in terms of the ability to introduce favourable APD rates for regions in the UK without viable ground transport alternatives.

“The Government’s current proposals clearly also have unintended consequences with the inclusion of offshore helicopters under the heading ‘business jets’, as well as impacting on small airline services, which are not appropriate.”

*Figures from Oil and Gas UK.

As the Treasury’s consultation on the reform of Air Passenger Duty (APD) enters its final week – ends on 17 June – ABTA is calling on the government to rethink the levels and structure of the tax which is the highest in the world.

APD is based on distance travelled and at present a family of four flying to Europe will pay £48 in APD, to the USA the tax increases to £240, to Australia the tax increases to £340 – all based on the economy rate – however, the cost of the tax is set to rise again next April by twice the cost of inflation.

Only five European countries impose some form of aviation tax with the UK’s level higher than anywhere else in the world. Denmark, Norway, Malta and Holland have all scrapped similar taxes as the revenue raised was outweighed by the damage caused to their economies. Ireland has pledged to follow suit shortly.

ABTA is part of the Fair Tax on Flying www.facebook.com/afairtaxonflying alliance that has united the travel industry to raise awareness of the high levels and illogical structure of APD, which is damaging UK travel and tourism and adding an additional tax burden to holidaymakers and business travellers at a time when fuel prices are reaching record levels.

Mark Tanzer, ABTA Chief Executive, said: “It is vital that the Government understands the damaging impact that APD is having on the tourism industry in the UK. We already pay the highest levels of aviation tax in the world, and if the Government goes ahead with its double-inflationary increase and levies an ETS tax on top of this in 2012, we will see another eye-watering increase in the tax burden on the industry and on holidaymakers and business travellers flying in and out of the UK. The industry is willing to pay its way, but this clearly puts us at a competitive disadvantage when compared with our European neighbours and punishes the travelling public unfairly.”

ABTA encourages all of its Members and any others who feel strongly to make their own submissions to the treasury at http://www.hm-treasury.gov.uk/2011budget_airpassenger.htm

Related stories:

Manchester Airport launches ‘give us a break’ APD campaign

UK Airport Consultative Committee: APD and European Emissions’ Trading Scheme = double taxation

Double taxation on flights from 2012

JLA urges chancellor to rule out double taxation

APD could threaten Scottish flights

Delegates from airports across the UK met in Aberdeen last week for the annual liaison meeting of airport consultative committees hosted this year by Aberdeen Airport.

The meeting discussed a full agenda, with particular emphasis on three major consultations: the Treasury review of Air Passenger Duty (APD); the Department for Transport consultation on a sustainable framework for UK aviation; and the Civil Aviation Authority’s proposals on passenger rights and their reform of complaints’ handling.

Delegates were concerned, on the review of APD, that the introduction of the European Emissions’ Trading Scheme in 2012 would lead to double taxation of passenger flights and agreed to urge government to consider off-setting income generated by the ETS to allow for a reduction of APD rather than the current proposed increase. They expressed concern at the continuing impact of APD on domestic flights within the UK, particularly where viable alternative surface transport was not available and suggested that the rate of APD should be halved for domestic point to point flights. They also felt that greater clarification was required on the definition of ‘business jets’. It appeared that this phrase was now being interpreted as including such parts of aviation as the transfer of offshore workers by helicopter, which they felt should continue to be exempt from APD.

Delegates generally welcomed the proposals in the framework review and the CAA’s consultation that put the passenger at the centre of aviation policy and look forward to working with the DfT and CAA on the development of new guidelines to clarify ways in which airport consultative committees can ensure enhanced representation of passenger interests. They agreed to express again the need for government to find some way to ensure an acceptable level of access to the main London airports for UK regional flights.

Azerbaijan Airlines has launched a new service from Aberdeen Airport to Baku.

The direct flights will operate twice a week – Tuesdays and Sundays – using an Airbus A319.

Passengers flying from Azerbaijan will be able to access onward connections throughout the UK and Norway thanks to a codeshare agreement with Eastern Airways.

WorldPoints – the loyalty programme that rewards passengers when they shop at Heathrow and the other BAA airports – is partnering with British Airways to enable members to redeem points for BA Miles.

WorldPoints members receive one WorldPoint for every £1 they spend in shops, bars, restaurants and car parks, with each point redeemable for one BA mile.  This new reward partner is in addition to the other benefits offered by the WorldPoints programme including discounts on car parking and Heathrow Express bookings and airport shopping vouchers.

James Hillier, British Airways Executive Club Manager says: “We are delighted to announce our partnership with WorldPoints offering our customers the opportunity to earn BA Miles on virtually all airport spending.”

Passengers can collect WorldPoints on purchases from around 600 airport outlets, with over 150 different participating brands. These range from high street favourites such as Reiss, Boots and Dixons to luxury retailers including Paul Smith, Mulberry and Prada.