BAA to Campaign for the Sustainable Growth of Heathrow

June 12, 2007

RDATE:10062007

BAA has joined Future Heathrow, the campaign for the sustainable growth of HeathrowAirport, saying that the expansion of the airport is vital to UKcompetitiveness.

The move is a sign that BAA is increasingly confident that the further growth of the airport is possible within environmental limits on noise, air quality and surface access set out by the Government in its 2003 Air Transport White Paper.

Tony Douglas, Chief Executive Officer of BAA Heathrow says:

"The Government will launch a consultation on the future of HeathrowAirportlater this year and BAA will be campaigning for permission to grow."

"Heathrow is at the heart of the UKeconomy and one of our country's most important assets. It supports thousands of jobs, provides the vital links between the UKand the global economy, and is an absolutely essential factor in convincing companies to locate in Britain. But today Heathrow is full, operating at 99% of its current runway capacity, and vulnerable to foreign competition."

"We do not underestimate the impact that Heathrow's expansion would have on some local communities, but the decline of the UK's only hub airport would also have real and lasting effects.

"We are increasingly confident that the further growth of Heathrow is possible within the environmental limits set out by the Government - that means no more noise than in 2002, air quality pollution safely within EU limits, and public transport improvements to help manage congestion."

Future Heathrow is a coalition of airlines, trades unions, business groups, aircraft manufacturers and other organisations that support the sustainable growth of HeathrowAirport.

Lord Clive Soley, Campaign Director of Future Heathrow says:

"I am delighted that BAA has joined Future Heathrow. It is a sign of the growing realisation that Heathrow cannot stand still. If the airport does not meet the evolving needs of business, then business will simply move elsewhere, with other European airports eager to provide the routes that Heathrow cannot."

For further information contact Heathrow Airport Press Office: 020 8745 7224 or Lord Soley: 07785 250456

Notes to editors:

BAA has been working with the Government, Civil Aviation Authority, and National Air Traffic Services to consider how environmental conditions on noise, air quality and surface access could be met in such a way as to allow the growth of the airport. The work that is being undertaken is known as the Project for the Sustainable Development of Heathrow and fulfils the Government's commitment in paragraph 11.63 of the Air Transport White Paper to:

"institute immediately with the airport operator and relevant bodies and agencies a programme of action to consider how these conditions can be met in such a way as to make the most of Heathrow's two existing runways and to enable the addition of a third runway".

The results of the environmental assessment will be subject to full public consultation later this year.

Heathrow's growth would only go ahead within strict environmental limits. That means no more noise than in 2002, all air quality pollution safely within EU limits, and public transport improvements to help manage congestion.

Heathrow is vital to UKcompetitiveness. Heathrow provides the vital arteries linking the UKto the global economy. Heathrow is the UK's only hub airport. Around 85% of the UK's long-haul flights depart from Heathrow. It operates the UK's only direct air links to emerging world cities such as Shanghai, Beijing, Mumbai, and Sao Paulo. More than half of all the UK's air freight passes through Heathrow

Heathrow supports thousands of jobs. Heathrow employs 70,000 people and supports over 100,000 further jobs right across the UK. It is the biggest single-site employer in the UK. In some local boroughs as many as one in every ten people in employment work at Heathrow

Heathrow is an essential factor in attracting business to the region.90% of businesses in Londonor the counties surrounding Heathrow rate the airport as either vital' or very important' to their business (OEF, 2006). More than half of major European companies report that international transport links are absolutely essential' in deciding where to locate their business (European Cities Monitor, 2005)

Heathrow is vulnerable to foreign competition. Heathrow has two runways operating at 98.5% of their permitted capacity. Frankfurthas three runways, Paris Charles De Gaulle has four, Amsterdam Schipol has five, and all operate at less than 75% of their capacity. The number of destinations served by Heathrow has fallen from 227 in 1990 to 180 today. Frankfurt, Parisand Amsterdamhave all increased their destinations and can offer new slots to emerging economies.

Aviation is addressing its climate change impacts. BAA has put itself at the forefront of lobbying for aviation to be included within the EU Emissions Trading Scheme, which would force airlines to cut their own carbon dioxide emissions or pay for other to do so. Aviation only contributes 6% of UKcarbon dioxide emissions and less than 2% of global greenhouse gas emissions. The Stern report says that limiting airport capacity is an inefficient way of regulating demand, while carbon trading would be an effective way to price emissions

Other Future Heathrow members include:Amicus, ATAG, BALPA, BAR UK, BATA, bmi, British Airways, Boeing UK, CBI, Destination Heathrow, GMB, IATA, London Chamber of Commerce and Industry, Airline Operators Committee, London First, Thames Valley Economic Partnership, TUC, TGWU, Virgin Atlantic Airways, West London Business

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