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'Once-in-a-generation opportunity'

'Once-in-a-generation opportunity'

The travel industry on Tuesday broadly welcomed government backing for expansion at Heathrow through a third runway.

 

But while Virgin Atlantic’s response was effusive, British Airways owner IAG sounded a more cautious note.

 

Craig Kreeger, Virgin Atlantic chief executive, said: “We applaud the decision. Heathrow expansion is a once-in-a-generation opportunity.

 

“An expanded Heathrow is uniquely placed to enable a transformative increase in airline competition for passengers that will benefit tourism, businesses and leisure passengers.”

 

IAG though said: “Heathrow is the most expensive hub airport in the world. The government has missed an opportunity to provide the UK with the airport it needs at a price it can afford.

 

“The CAA has responsibility to curb Heathrow’s excesses and inefficiency. We will be looking to the regulator to protect customers and keep charges flat in real terms. The alternative is long-term damage to the UK economy.”

 

Dale Keller, chief executive of the Board of Airline Representatives, had a similar warning, saying airlines would hold Heathrow to account over the cost of expansion and praising Grayling for his pledge to ensure passenger charges remain at today’s levels.

 

Adrian Parkes, GTMC chief executive, added the guild’s research showed just a 1% growth in international air business travel would be worth £400 million in knock-on economic benefits.

 

“This is not a figure the government can ignore," he added.

 

Abta said MPs must now vote in support of expansion due to the severe limitations on airport capacity, especially in south east England.

 

Mark Tanzer, Abta chief executive, said: "While Abta recognises that expansion must be delivered in a sustainable manner, constraints on airport capacity in the south east, in particular Heathrow, severely inhibit the UK’s ability to grow.

 

"In 2017, 78 million passengers passed through Heathrow, 67% on leisure trips and the rest on business. It is currently operating at almost 100% capacity.

 

“Airport expansion will boost the wider UK economy, creating thousands of jobs and delivering the increased connectivity the UK needs, especially in a post-Brexit world.

 

"However, it is also important that consumers aren’t burdened with the costs of expansion and that additional capacity is delivered in a cost-effective manner.”

 

Other groups backing expansion included the Unite union, the British Chambers of Commerce and trade body Airlines UK.

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