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Aviation History
1984
1984 - 0005.PDF
Radical change for UK aviation policy LONDON ~ Basic, traditional patterns in the way UK airlines are allo cated their routes, in the way traffic is shared between British airports, and in the degree of competition among airlines, may change radically if a new study recommends the alterations and is finally accepted. Transport Secretary Nich olas Ridley recognises that the planned 1985 privat isation of British Airways may have "implications" for competition and for "the sound development of the British airline industry", and has asked the Civil Aviation Authority to advise him on the subject. Evolutionary change to ward more flexible attitudes concerning competition has been taking place at the CAA over the past three years, and it seems that the Transport Secretary is taking this opportunity to examine whether this evolution should go further and faster. So the CAA has sent a let ter to airlines and to airline users' representatives sound ing out their attitudes to some changes in rules, or changes in policy emphasis, which may be adopted in the future. The questions give a good idea of what is under consideration: • Is there a case for licensing and designating British air lines more freely on inter national routes? • Is there a case and is there scope for licensing additional competing domestic services into Heathrow? 9 Are there other ways of providing greater oppor tunities for airlines to compete on domestic routes? • Where direct competition between British airlines is not achievable, should the Authority be readier to substitute one operator for another? 0 Is there a case for ratio nalising route networks, including the transfer of routes between airlines? • Is it still necessary to regulate domestic fares, for example to deal with anti competitive behaviour? The CAA adds: ". . .you may wish to consider the real possibility of adopting alternative techniques, for example franchising on the independent television model or allocating routes to the highest bidder, instead of or in conjunction with the classi cal regulatory methods of selecting carriers for routes. How would it work?" The Authority wants replies by the end of this month. And Ridley wants the CAA's recommendations well before BA is put on the market, so that investors will know what they are buying. The 1,000th Boeing 737 was rolled out last month at Boeing's Renton plant. Sales for the type stand at 1,121 Britain wants new transatlantic gateway LONDON .71 Z II The UK Civil Aviation Authority's decision to give British Midland Airways the Manchester-Glasgow- New York route means bring ing a new gateway destination into the Bermuda 2 US/UK bilateral aviation agreement, and increasing potential capacity on UK-US routes generally. Until now all transatlantic services to and from Scotland have had to use Prestwick Airport, some 40 miles from Glasgow. The CAA has now ruled that BMA can use Glasgow Airport instead. Only Prestwick and the London airports currently enjoy full gateway status under Bermuda 2. This is not the only signifi cant point about the route award. It would also give BMA access to New York from four different UK destinations — Birmingham, Belfast, Manchester, and Glasgow—because it already holds the Birmingham- Belfast-New York licence. BMA wants eventually to be able to operate one-stop services to New York through permutations of the four. But BMA's plans—and the Manchester - Glasgow - New York route itself—have substantial hurdles to clear before the airline can begin operating the new service in April 1985. The British Airports Authority immedi ately appealed against the Glasgow decision to UK Transport Secretary Nicholas Ridley, because of the impli cations for Prestwick's future. The two airlines which cur rently operate transatlantic services from Prestwick—Air Canada and Northwest Orient—are almost certain to demand a move to Glasgow if the BMA route is allowed to become a precedent, leaving Prestwick's future as a passenger and cargo desti nation very bleak. In specifying Glasgow as a transatlantic destination, the CAA recognises that it is flying in the face of the Government's airports policy, AIR TRANSPORT last spelled out in March 1983. At that time the Government said unequivo cally that it intended to make every effort to develop Prestwick as a destination. A British Airports Author ity and Scottish Development Agency plan to make Prestwick a freeport was gain ing momentum until the CAA decision. The British Airports Authority appealed to the UK Transport Secretary on the grounds that the £25 million it has invested in building up Prestwick's facilities would be wasted. Apart from that, it said at the BMA route hearing that at least £15 million would be needed to develop Glasgow for large-scale transatlantic operations. According to the BAA, this figure would not take into account runway improvements. It says that the terminal and aprons would need to be developed for large aircraft operating transatlantic services. The CAA, however, gave as its reason for allowing the Glasgow licence that the air transport industry in Scot land and the rest of the UK would be best served if an airport close to the main population catchment area in Scotland were chosen. It said that Glasgow has many more domestic and European connections than Prestwick, so the addition of trans atlantic services would help to make it an important regional hub and ease congestion at London's Heathrow and Gatwick Airports. BMA is delighted by the CAA decision. The carrier intends to use DC-10-30s for the service if the Government does finally give the go-ahead. BMA now has probably the strongest domestic network of any UK carrier owing to its new routes from Heathrow to Glasgow, Edinburgh, and Belfast; its recent acquisition of Scottish carrier Loganair; and its 75 per cent share in Manx Airlines, set up last year in collaboration with Air UK. The service would begin in April 1985, because no new UK-US services are allowed until then by agreement between the two countries. BMA also intends to take up its existing Birmingham- Belfast-New York licence in 1985, because it believes traf fic in 1984 will not be strong enough. FLIGHT International, 7 January 1984 5
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