London hub airport may need public subsidy but the devil is in the detail, says Pinsent Masons
24 Jan 2013 | 05:06 pm |
Jon Hart, Infrastructure Partner at international law firm, Pinsent Masons, comments on the findings of a report commissioned by the Transport Select Committee into the Government's aviation strategy, in particular, its findings on a hub airport for London:
"Ahead of the much-anticipated response of Howard Davies, a former chairman of the Financial Services Authority, it’s positive news that the Transport Committee has been looking at the economic foundations for establishing an airport “hub”.
"As always though, the devil is in the detail. Oxera, an economic consultancy commissioned to undertake the research, recognise that they have not looked at specific proposals, nor do they factor in the wider societal costs. The key recommendations need to be seen as part of a much bigger picture.
"These findings should not be allowed to become a distraction from the difficult political decisions that need to be taken on Heathrow and the bread-and-butter parliamentary time needed to get the Civil Aviation Bill converted into effective legislation and with that an updated economic regulatory model for airports.”
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