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Heathrow losing to rivals: study
Source: Agencies |
00:16 UTC+8 November 16, 2012
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A LACK of spare runway capacity at Heathrow costs Britain US$22 billion a year in lost trade and means the country is losing out to European rivals in the race for lucrative emerging markets routes, a study found.
The report, commissioned by Spanish group Ferrovial's Heathrow Ltd, said the problem could only be solved by having a single hub airport - meaning either Heathrow should be expanded or a new international hub should be built.
Heathrow, which has two runways, is operating at 99 percent of capacity. The government blocked plans for a third runway when it came to power in 2010.
The report, written by the consultancy Frontier Economics, said the government needed to act to better compete with the likes of Amsterdam, Frankfurt and Paris for routes to emerging markets.
"There is no room to fit in new trade routes to the emerging economies," it said. "There are 1,532 more flights to the three largest cities in Chinese mainland from Paris and Frankfurt than there are from Heathrow, while the gap with China has also widened in terms of destinations."
The report, commissioned by Spanish group Ferrovial's Heathrow Ltd, said the problem could only be solved by having a single hub airport - meaning either Heathrow should be expanded or a new international hub should be built.
Heathrow, which has two runways, is operating at 99 percent of capacity. The government blocked plans for a third runway when it came to power in 2010.
The report, written by the consultancy Frontier Economics, said the government needed to act to better compete with the likes of Amsterdam, Frankfurt and Paris for routes to emerging markets.
"There is no room to fit in new trade routes to the emerging economies," it said. "There are 1,532 more flights to the three largest cities in Chinese mainland from Paris and Frankfurt than there are from Heathrow, while the gap with China has also widened in terms of destinations."
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