Airportcutsthreat

Oct 1 2009 Evening Gazette

BRITISH Airways' boss Willie Walshie's threat to cut services if Heathrow’s third runway is blocked has added to regional pressure for the government to stand by its commitment to expand the airport.

A report by the British Chambers of Commerce this summer forecast that an extra runway would deliver between £8.6bn and £12.8bn in increased productivity, and around £20bn in wider economic benefits, such as higher levels of employment.

Some 60% of that benefit was predicted to be outside of London with the North-east likely to receive a £115m-a-year boost, according to Hugh Lang of Peel Airports, the majority shareholder at Durham Tees Valley Airport. He said immediate action was necessary to prevent the continuing reduction in regional services into Heathrow.

The BA chief’s warning that without a third runway at Heathrow the company would have to cut capacity on domestic and European routes is likely to undermine further London’s claim to being a major world hub. The number of UK regional cities Heathrow serves has fallen from 21 to six - with DTVA losing its bmi service this year.