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2 July 2014
In the week that Norwegian Air launches ground-breaking new low-cost long-haul services from Gatwick to America, an independent aviation expert has highlighted how this is one of a number of emerging industry trends that will transform the UK’s runways debate.
An in-depth new report by aviation analyst Chris Tarry focusses on the “game-changing” impacts of new generation aircraft, along with other key areas the Airports Commission have highlighted as central to the UK’s runways debate including: the growth of low-cost carriers; the future of hub traffic through London; and how the long-haul market & point-to-point services will grow.
Based on these key areas, Chris Tarry’s independent report outlines a series of emerging trends all supporting the case that expansion at Gatwick is the best option to meet the aviation needs of the future. Among the report’s key findings are:
Several of these key emerging trends will be underlined this week as Norwegian Air launches new services from Gatwick to New York, Florida and Los Angeles, showing how the capabilities of new aircraft are allowing low-cost carriers to continue their growth and venture into the long-haul market.
Gatwick CEO Stewart Wingate said: “A low-cost carrier flying to the Big Apple for a small price shows how fast aviation is changing and highlights one of a series of future trends that will have a huge bearing on the UK’s runways debate.
“As this new report outlines, it is the airlines’ fleet plans and order books of today that hold the key to the expansion needs of tomorrow. New generation aircraft and other key trends will lead to a reduction in ‘hub’ connecting traffic, an increase in point-to-point services and the continued growth of low-cost carriers, all of which are cornerstones of Gatwick’s case for a second runway.
“Just this week we have seen reports that Heathrow expansion would require increased landing costs, a move that would hold back many airlines especially those that will be the engine for London’s growth. It is clear that Heathrow’s plans are yesterday’s solution to tomorrow’s problem and that only expansion of Gatwick can meet the challenges and demands of the future.”
Bjørn Kjos, CEO of Norwegian said: “At Norwegian, we believe that everyone should be able to afford to fly. In order to compete in the global airline industry you need to adapt to changes and keep a constant focus on cost. Norwegian has a low-cost model, meaning a lean administration, brand new and fuel efficient aircraft and efficient operations. We fly direct routes with high passenger demand and choose centrally located airports such at Gatwick that share our mindset.”
A full copy of the Chris Tarry report is available to download here. Detailed conclusions outlined in the report include:
New generation aircraft are a “game-changer” in the expansion debate:
The short-haul market will continue to be the most important with Low Cost Carriers dominating this market – Gatwick is best-placed to meet their needs:
‘Hub’ traffic in London is relatively low and will continue to decline – new generation aircraft will continue this trend:
‘Hub’ traffic in London will also be reduced by growth in the Gulf and emerging markets:
While ‘hub’ traffic will fall, London’s already dominant point-to-point traffic will further increase because of new generation aircraft:
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About London Gatwick
Gatwick Airport is the UK’s second largest airport and the most efficient single-runway airport in the world. It serves more than 200 destinations in 90 countries for around 38 million passengers a year on short and long-haul point-to-point services. It is also a major economic driver for the South-East region, generating around 21,000 on-airport jobs and a further 10,000 jobs through related activities. The airport is 28 miles south of London with excellent public transport links, including the Gatwick Express. Gatwick Airport is owned by a group of international investment funds, of which Global Infrastructure Partners is the largest shareholder.
In its December 2013 interim report, the Airports Commission included London Gatwick and Heathrow on its shortlist of potential locations for a new runway in the UK. Expansion at Gatwick will best meet the UK’s aviation needs for the future, can provide the greatest economic boost with the least environmental impact, and a new runway can be operational by 2025. For further information, see: www.gatwickobviously.com
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