HL Deb 30 July 2002 vol 638 cc172-3WA
Lord Berkeley

asked Her Majesty's Government:

In respect of their air transport consultation document published on 23 July—(a) what is the potential increase in productivity across the economy due to growth in the aviation industry (page 48); and (b) what are, per passenger, the values attributed in the economic appraisal of options (section 9.3) to the benefits of: (1) allowing more people to fly for business; (2) allowing more people to fly for pleasure; (3) giving passengers a greater choice of airport; (4) giving passengers a greater choice of flight timings. [HL5605]

Lord Macdonald of Tradeston

The main south-east air transport consultation document (page 148) reports that the focus of economic appraisal of the airport development options has been to estimate the direct benefits to passengers, and that potential increase in productivity across the economy due to growth in the aviation industry was not estimated.

A fare premium is applied in the modelling to price off all passengers at a congested airport; this is the same for all passengers. Benefits to passengers from increasing airport capacity are represented by a reduction in this fare premium. The fare premium at a congested airport is higher the less scope there is for switching to a less preferred airport, and higher too if alternative airports have less choice of flight timings.