CAMPAIGN UPDATE - AT A GLANCE

R2: Mass opposition lines up for SSE conference
A 'storm force of opposition' to BAA's plans for a second runway at Stansted Airport attended SSE's major rally on Wednesday 2 April at the Rhodes Centre, Bishop's Stortford. The community heard the latest on the campaign against a second runway, which, if it went ahead, would be the biggest airport development in the UK since the Second World War. Chaired by Mark Prisk MP, the rally was addressed by Peter Sanders, SSE chairman, and campaign director Carol Barbone, joined by MPs, peers, council leaders and representatives of environmental groups – all with the common purpose of ensuring that a second Stansted runway never sees the light of day. See SSE Press Release.

The speakers included Labour peer Baroness McIntosh, Lord Hanningfield, Conservative Transport spokesman in the House of Lords and leader of Essex County Council. Saffron Walden MP and Deputy Speaker Sir Alan Haselhurst provided the closing address reiterating his outright opposition to BAA's plans and confirming that the growing opposition in the local community was now mirrored in political circles with both the Conservative Party and the LibDems now officially opposed to cancelling plans for a second Stansted runway. He pointed out that it was now almost inevitable that a General Election would take place before the Public Inquiry on a second runway had run its course and the Inspector had presented his or her report to the Government for a final decision.

Stansted expansion – where are we now?
The Government decision following the public inquiry into BAA's plans for unlimited use of the existing runway may now be delayed until at May. This follows an eleventh hour admission by BAA that it significantly understated the air pollution impacts in its evidence to the inquiry, not dissimilar to the revelations over Heathrow (see 'Government overwhelmed…' below).

Meanwhile, BAA's application for a second runway at Stansted – which would make it bigger than Heathrow today in terms of planes, passengers and landgrab – will lead to a public inquiry expected to last throughout 2009 with a decision as late as 2010. Initial representations need to be made by late June 2008. More information can be found on the SSE website and especially the Second Runway Quick Links page.

Local councils form coalition against expansion
In one of the biggest shows of local authority opposition to airport expansion to date, county councils representing Essex, Hertfordshire and Suffolk, along with Uttlesford, East Herts and Braintree district councils, have formed a coalition under the banner 'CO2' (Councils opposing a second runway). In a protest outside the House of Commons, they were joined by a similar coalition of local councils – the '2M Group' – opposed to Heathrow expansion. Councils opposed to Stansted expansion represent more than three million people. Other councils are expected to join 'CO2', which was represented at SSE's conference on 2 April.

Government overwhelmed by airport opposition…
Opposition from the community and the media to plans to expand Heathrow has taken the Government by surprise. Following revelations that the Government colluded with BAA by hiding noise and pollution increases, Heathrow lobby group HACAN Clearskies, with the support of Greenpeace and local councils, is threatening to sue the Department for Transport for failing to carry out its statutory duties. Protesters from Plane Stupid underlined the collusion by unfurling a banner on the roof of Parliament, labelling it 'BAA HQ'. And amidst a wave of national press articles opposing airport expansion, the debate about an offshore solution has re-opened. "Coming on top of the community's rejection of plans to expand Stansted, the Government has been overwhelmed by opposition to its stance on Heathrow," says Carol Barbone, SSE campaign director. "We continue to stand should to shoulder with all communities threatened by airport expansion."

…and still very confused
Ruth Kelly, transport secretary, speaking at an international conference, has admitted that climate change is "one of the biggest threats facing the global community" and that aviation was making a growing contribution to global warming, yet rejected plans to halt airport expansion or impose punitive taxes as a "crude" way to ration air travel. Her comments follow an admission by the Department for Environment, Food and Rural Affairs (Defra), that the public are confused by the Government's support for airport expansion while warning of the dangers of man-made climate change.

Running out of sky
Not for the first time, air traffic authorities have admitted that the Southeast is running out of airspace. The Civil Aviation Authority (CAA) and National Air Traffic Services (NATS) have warned that expansion in the Southeast would not have enough capacity to accommodate the scale of traffic growth on the basis of current and predicted technology. The admission was made to the Competition Commission, which is conducting an investigation into the way BAA runs Heathrow, Gatwick and Stansted.

Maps showing NATS's latest proposed flightpaths affecting Stansted Airport with links to the consultation are available here.

Debt puts BAA under siege
BAA is again under siege from all directions. Its parent company Ferrovial has failed to refinance the £10 billion debt it took on when it bought BAA 18 months ago, putting pressure on the group to sell assets to cover interest payments. BAA duly announced the sale of non-core assets including part of its property portfolio and its duty-free shops. The latter has implications for Stansted where shops, along with car parking, offset losses on passenger business (although BAA will receive rental from the new shop owners). The CAA's refusal to allow BAA the return on capital it sought has caused speculation that it could retaliate by delaying its investment programme, including the third runway at Heathrow. A catalogue of bad news was summed up in a headline in The Times, "Squeeze on BAA could be terminal".

Further fall in passenger numbers
Stansted passenger numbers were down 4% in February compared with the same month the previous year and annual numbers dropped by 1%. Daily air transport movements in February were the lowest for three years. Numbers also fell in January.

Call for BAA to reveal all
EasyJet has called on the CAA to make BAA's failing finances public under the Freedom of Information Act. EasyJet has, unusually, joined forces with Ryanair, BMI and Virgin Atlantic to urge transport secretary Ruth Kelly to break up BAA. This follows the verdict of the Commons transport committee which came to the same conclusion. BAA's annual report reveals that the company is at the limit of the covenants on some of its existing borrowing. In an unusual press release intended to reassure creditors, BAA maintained that it was in compliance with financial and other covenants in its bonds. The same airlines have also attacked the CAA over increased charges and failure to regulate BAA's monopoly. The CAA has put forward its own case for reform but says the charges are needed to pay for increased investment.

EasyJet says it will seek a judicial review over price increases imposed by the CAA at Heathrow and Gatwick. If the High Court accepts there is a case, a decision may not be reached until the end of the year, which could be another threat to the re-financing of BAA. Charges at Stansted for the next five year period have yet to be finalised and it is already clear from submissions to the CAA that Ryanair and Easyjet are lining up for a major battle on Stansted charges. Their submissions can be read here. SSE's submission to the CAA can also be found on this webpage.

Turbulent times for budget airlines
Following Ryanair's warning that its profits could halve this year because of high fuel costs and low consumer confidence, The Independent newspaper reports that the airline's 'fuel hedge' is about to run out, exposing it to the 'full blast of spot prices' with a knock-on effect on profit margins. Dublin stockbroker Goodbody has cut its Ryanair forecasts for the third time in three months but still believes the Irish airline – Stansted's biggest customer – will emerge from the crisis 'stronger and fitter' than ever.

EasyJet has said it will stick to a pledge not to introduce a fuel surcharge, even as its shares fell 17 per cent amid warnings that it would be spending £45 million more than forecast on aviation fuel, according to The Times. EasyJet is thought to be about to follow Ryanair and buy back shares in its own business – a way for companies with excess cash to return money to shareholders and support their share price.

Tourism deficit worsens
The UK has suffered a fall in overseas visitors and forward bookings for the fourth consecutive month. UKinbound reports a drop of almost 4 per cent in arrivals in January compared with the same month last year. It warned of a 'significant drop' in demand for long haul countries with only a 'modest increase' in short haul business, reports TravelMole News. Budget flights are a major contributor to the UK's tourism deficit, currently running at more than £19 billion.

Night flights worsen under Labour…
The Conservatives have released figures that show that night flights at Stansted Airport have almost quadrupled under the Labour Government. Total night flights from the three London airports have more than doubled.

…and so do emissions
The UK's climate change emissions may be 12 per cent higher than the Government claims, according to the National Audit Office, which criticises the Government for using two different carbon accounting systems. The more accurate of the two includes emissions from shipping and aviation. On the basis of that system, there have been no reductions in emissions. The figures fly in the face of consistent Government claims that it is reducing emissions, reports The Guardian.

M11 'Spaghetti Junction' announced
Transport Minister Tom Harris has announced the Highways Agency's plans for new routes from the A120 and M11 to service a two-runway Stansted Airport. They include a new M11 Junction 8b, a replacement junction on the A120, and a widening of 1.2 km of the A120 between the existing three-lane section and the replacement junction. The scheme is dependent on the outcome of the planning application and the inevitable public inquiry into a second runway. Publication of an environmental statement will provide a further consultation opportunity. The proposal – now the subject of final consultation within the community – is a slight variation of the 'Spaghetti Junction' proposal published last spring that featured overhead roundabouts, despite objections from SSE and the local community about noise and light pollution.

SSE was highly critical of the scheme over the manner of the consultation and the focus on road rather than rail access – a point underlined by latest figures, reported in The Times, that show that Britain's road network is growing 15 times faster that rail, undermining government claims that it wants people to switch from cars to trains.

More recent news
For more on these and other stories, see our Recent News page.

Want to keep in touch?
For regular campaign news, become a member (minimum £10 donation) or sign up (free) as an online supporter, see our What You Can Do page.