Economic impacts of hub airports

COLIN BUCHANAN

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Contents

Introduction Hub airports Methodology Findings

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Introduction Study commissioned by BCC to

Address lack of understanding of economics of hub airports

Set out the economic consequences of a constrained Heathrow

Determine the economic impacts to UK and the regions of expanding Heathrow

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Heathrow is UK’s hub airport

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Hub supports thin routes

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Heathrow long haul

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Number of destinations served

Text

Text

Text

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Number of passengers per ATM

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Average ATM per airline

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Proportion travelling to hubs who are interchanging

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Leading EU airports serving China

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Methodology Calculated

Direct economic benefits Wider economic benefits

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Direct economic benefits Standard economic appraisal using DfT

methods and values taking account of Delay Reliability Frequency New destinations Regional connectivity

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Five scenarios modelled These looked at how the additional capacity

would be used – combinations of Increased flight to existing destinations New destinations – especially domestic No new flights – improve reliability and reduce

delays

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Results – direct economic benefits

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Wider Economic Benefits Seek to identify where present constraint

impacts on Productivity growth International competitiveness Market imperfections

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Connectivity to productivity elasticities

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Results - WEBS

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Conclusions Substantial economic benefits of expansion

of LHR 28.6-32.8bn (60yr npv) 60% of benefits accrue outside London and

South East WEBS higher than for HSR and Crossrail