“Better, not bigger”

The aviation sector generates billions of pounds worth of economic output and tax revenue, provides large scale employment and enables the UK to compete in the globalised economy. It also delivers significant social benefits as people travel for leisure or to visit friends and family. It is therefore an industry that I want to see thrive and one this Government takes seriously.

Recent years have seen global terrorism, rapidly rising and fluctuating oil prices, the financial crisis and global recession and then, earlier this year, the eruption of a volcano that led to the closure of Europe’s airspace. Our dynamic, successful and flexible industry has responded positively to these challenges. Today we have world leading and growing airlines and our airports attract investment from across the globe, accruing the competition and innovation benefits of diverse ownership.

However, we need to acknowledge that the very high levels of growth witnessed in air travel in the years before the recession hit have come at an environmental cost. One of the first announcements made by the Government was confirmation that we oppose construction of additional runways at Heathrow, Gatwick and Stansted. Our commitments on combating climate change and minimising the impact of airports on local communities makes this the right decision.

We must be original and start a new chapter in aviation policy that promotes a competitive aviation industry, supporting economic growth, while recognising the need for restraint. Our goal is to improve the efficiency of our airports in a way that is consistent with our commitments to protect the environment. I believe that the competitive and innovative instincts of our airport industry will help make this possible.

The fundamental policy principle is to make our airports better, not simply bigger.

We have established the South East Airports Taskforce. Drawing on the skills, experience and expertise of a cross section of the aviation industry, the Taskforce is focused on making the very best use of existing infrastructure to deliver operational improvements at Heathrow, Gatwick and Stansted and improving conditions for all users.

Furthermore, we signalled in the Queen’s Speech our intention to reform the framework for the economic regulation of airports to benefit passengers and support investment in better facilities. These reforms will replace the current one-size fits all framework with a new licensing regime which can be better tailored to meet the circumstances of individual airports and allow regulation to be reduced where possible.

We must also explore the potential of our regional airports to absorb more of the demand for air services. Heathrow has dominated recent political discourse and this has overshadowed the contribution of other airports to national prosperity. The first flight of an A380 into Manchester last month provided a powerful reminder of the commercial potency of regional cities and the role their airports must have in the future.

The benefits and opportunities provided by flying are woven deep into the fabric of our modern way of life. And the aviation sector has an important role to play in the building of a stronger economy and delivering a cleaner environment. That is why this Government values the industry and is happy to work in partnership with it on meeting the economic and environmental challenges we face in modern Britain.