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            september 19, 2019

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BAA welcomes new report on economic benefits of aviation


BAA has welcomed the publication of a major report by the Airport Operators Association setting out the economic benefits that aviation brings to the UK economy. “The Contribution of Aviation to the UK Economy” report shows that the UK’s air transport infrastructure is critical to boosting the wider economy. If growth in air transport capacity is restricted to just 1.5% a year – touted as a UK-only measure to reduce aviation’s environmental impact – by 2030 the economy could forego over £30bn a year of wealth created and support 700,000 fewer jobs. 
The latest Department for Transport forecasts show that by 2030, there will be passenger demand in the UK for 434 million flights, an increase of about 3% a year. But if growth in flying were restricted to just 1.5% a year, the report estimates that average return air fares could see a 40% rise from £258 to £360, by 2020.  
The report, prepared by independent economic consultants Oxera, also says that as the economy begins to recover, the role of aviation in supporting businesses through international connectivity, the movement of goods and people, and attracting inward investment, will be important in underpinning and accelerating recovery. To do this, aviation should be harnessed, not penalised. 
“The Contribution of Aviation to the Global Economy” report points out the damage that could be caused to the sector by UK-only alternatives to an international emissions cap, such as the Government’s recently increased Air Passenger Duty. The document calls for a global deal on aviation emissions to be agreed instead at the United Nations Climate Change talks in Copenhagen next month. 
Commenting on the report, Colin Matthews, BAA CEO, said: “This report highlights the social and economic benefits that aviation brings to the UK, and the importance of a global deal at Copenhagen. Aviation must be part of society's solution to climate change, so BAA is working with our partners throughout the industry to realise a global deal on carbon emissions. We are also investing huge sums at our airports to improve services for our customers. The resulting reduction in environmental impact will be a critical measure of our success.”

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