Heathrow CEO John Holland-Kaye today warned that the Government’s ambition to transform the North of England into a high productivity, high growth ‘Northern Powerhouse’ is at risk unless the Government takes action on airport expansion. Speaking at the 2016 International Festival for Business in Liverpool, Holland-Kaye referred to analysis from Frontier (Europe) that sets out the importance of having a ‘domestically-located hub’.
Some UK regions have long haul connectivity via internationally-located hubs, such as Schiphol Amsterdam, Paris Charles de Gaulle and Dubai. But Frontier’s analysis indicates that domestically-located hubs tend to provide 70% greater frequency to their domestic regions than internationally-located hubs. Frequency is important for enabling convenient one-stop connections that leave at a time when business passengers want to fly.
The analysis also highlights that connectivity via domestically-located hubs supports higher levels of trade compared with connectivity via internationally-located hubs. Capacity constraints at Heathrow currently restrict the number of passengers able to connect via the UK’s only domestically-located hub. Lifting this constraint could help facilitate an additional £710 million in extra trade each year for the North of England.
Frontier regularly advises airports and airlines on issues relating to investment, regulation and economic impact.
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