Manufacturers need better flight links outside London if coalition is to fulfil vow to rebalance economy towards exports, says CEO
Britain's manufacturers urgently need better flight links out of airports beyond London if they are to power the economic recovery, according to a report from Birmingham airport that seeks to shift the aviation capacity debate away from Heathrow expansion.
Kicking off a public campaign for a network of long-haul airports to serve the UK, Birmingham is releasing research that highlights its position in Britain's industrial heartland. The airport says it has the second largest business catchment in the UK and the biggest number of manufacturers.
Paul Kehoe, the airport's chief executive, argues that if the government is to fulfil its promise to rebalance the economy towards manufacturing and exports the country's aviation strategy needs to better serve businesses in the industrial heartland.
"This report shows that a surprisingly high proportion of the country's potential demand for business air travel comes from Birmingham airport's catchment area. But rather than flying from their local airport, we have ended up with an illogical situation where these businesses have to slog down the M1 or M40 to get to Heathrow – leaving them with huge time and cost implications and adding to the congestion at our London airports," he said.
The report, carried out by Capital Economics, found that more than half a million businesses are within the Birmingham airport catchment – around one quarter of all Britain's businesses. It highlights strong demand for flights to Asia and the Middle East from them, but says they are forced to travel from airports in the south.
Local businesses have argued that the aviation industry needs to operate more long-haul flights out of Birmingham, especially once a runway extension is completed next year.
Steve Brittan, whose manufacturing company BSA Machine Tools does 90% of its trade overseas, says with the domestic and eurozone economies struggling he is increasingly looking for business further afield. He travels out of Birmingham rather than Heathrow, but has to spend time changing planes in cities such as Amsterdam.
"Currently we have to fly via European hubs to connect with our customers that are located globally in Asia and the Americas. These difficulties can put off overseas customers visiting our plant in Birmingham," he said.
"This is the heart of manufacturing here and if we are serious about things … we need an international airport."
The report also highlights obstacles for business travellers coming into the UK, noting that Birmingham airport's catchment was the destination for a quarter of all foreign direct investment that came into Britain in 2011.
Peter Mathews at Black Country Metals argues that the current focus of the aviation industry on Heathrow is costing companies outside London business.
"There are people who come to London and won't travel up to Birmingham, and that is a problem. Manufacturing is not in London, it's in the Midlands and further north," he said.
The research was commissioned by Birmingham airport to help form its response to the Sir Howard Davies commission into aviation capacity, which is not due to report until June 2015, after the next general election. Davies has promised, however, that his interim findings in late 2013 will significantly narrow down the options for potential airport expansion.
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Article source : http://www.guardian.co.uk
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