London City CEO calls on industry to lobby government

Richard Gooding, CEO at London City Airport, called on the business travel community to lobby government on its plans for the future of aviation.

Speaking at the Business Travel Market at London's Excel, Gooding said the aviation industry was under increased pressure from "scary" changes to APDAir Passenger Duty (UK only): An excise duty charged on the carriage of passengers flying on an aircraft with an authorised take off weight of more than ten tonnes or more than twenty seats. Due when the aircraft first takes off on the passenger’s flight and is payable by the aircraft operator. and constraints on expansion.

The government plans to scrap APD in favour of a per plane tax, which many airlines, including Easyjet, will welcome.

But Gooding warned: "The scary bit is that the government has set out to increase the take from APD by 40%. That's going to be paid by you and your customers."

He said that as Britain is an island nation, it relies more on air transport than any other European country, and that if transport links did not keep pace with the continent, the UK may lose business.

"You could argue we like the idea of Heathrow being constrained. In the short term that may be true, but we have to take a long term view. Travel will go to the continent and eventually the big institutions will move."

The Lib-Con coalition has scrapped plans to expand Heathrow and Stansted airports, and is setting up a task force to look at how the two airports, along with Gatwick, can be more productive.

Gooding said the industry needed to be more "robust" in countering constraints on aviation.

"This industry has the capability of lobbying about these things. So far we've been poor," he said.

The London City CEO said that travel through the airport, of which 70% is on business, has seen a sustained rise.

In the first five months of the year, London City airport has seen a 4 to 5% increase in travellers, compared to the same months the previous year.

"Business travel is alive and well," said Gooding, but don't discount "the government's ability to woon it", he warned.

www.londoncityairport.com