Business Live: Heathrow runway reaction

PACopyright: PA

The governor of the Bank of England, Mark Carney, today deflected questions about when he would leave his job.

He said he would not be swayed by political concerns as he weighs up whether to extend his stay at the central bank beyond his scheduled departure in 2018. 

"I want to find some time to reflect on it," Carney told members of the House of Lords.

Mr Carney is due to say before the end of the year whether he will take up an option to stay at the BoE until 2021. 

"It is entirely personal, and no one should read anything into that decision in terms of government policy, actual, imagined, potential, past, etc.," he said. "This is a role that requires total attention, devotion, and I intend to give it for as long as I can. But those are the only factors." 

Wall Street's main indexes dipped in Tuesday after trading results from companies in various sectors, including housing and consumer products, failed to live up to expectations.

The Dow Jones slid 52.94 points to 18,170.09, while the S&P 500 was down 8.13 points at 2,143.20 and the Nasdaq fell 26.43 points to 5,283.40.

The Home Depot retail chain slid 3.47%.

At the other end of the scale, Lockheed Martin, the world's largest defense contractor, reported a quarterly profit that beat analysts' expectations, as sales of its Sikorsky helicopters pushed total revenue up 14.8%. 

Lockheed's shares closed up about 7.32%.

Twitter has been a goldmine of Heathrow-related amusing tweets today. Here are some favourites:

Aircraft are much less noisy than they used to be. Nevertheless planespotters can still tell the difference between them, just by the noise.

We've had some really interesting emails today, thanks all. Several coming in have focused on transport issues, both around Heathrow and as reasons why expansion elsewhere should, or should not, have happened instead. Here are a few.

Email Message: Who is going to pay for the M25 improvements and any other infrastructure improvements? Bet it WON’T be Heathrow management.

Why should I, and many like me who never fly, be expected to cough up to increase BA/Heathrow profits?

from Doug Barnes

Who is going to pay for the M25 improvements and any other infrastructure improvements? Bet it WON’T be Heathrow management.

Why should I, and many like me who never fly, be expected to cough up to increase BA/Heathrow profits?

Email Message: Oh what a lost opportunity!

A new airport in the Bristol area (may be Filton) with a fast rail network to London, Wales, SW, northern powerhouse. Atlantic flights fly straight in - less stacking over the M25 pollution ghetto - win win win.

 Think outside the box (M25) you city folk!

from Philip Silvester

Oh what a lost opportunity!

A new airport in the Bristol area (may be Filton) with a fast rail network to London, Wales, SW, northern powerhouse. Atlantic flights fly straight in - less stacking over the M25 pollution ghetto - win win win.

 Think outside the box (M25) you city folk!

Email Message: Any Gatwick expansion would have been a disaster with the current state of Southern Rail and Gatwick Express.  It’s embarrassing watching tourists panicking in London Victoria station looking at a board full of cancelled trains or standing on an Express Train that refuses to budge. 

from James Cox

Any Gatwick expansion would have been a disaster with the current state of Southern Rail and Gatwick Express.  It’s embarrassing watching tourists panicking in London Victoria station looking at a board full of cancelled trains or standing on an Express Train that refuses to budge. 

Email Message: The US Air Force are leaving Mildenhall - an enormous air base in Suffolk with all the runways you want so why not spend the money on providing a fast transport system to London from there - plenty of room for expansion and a very willing workforce locally. Let's think for the future!

from Jon Symington

The US Air Force are leaving Mildenhall - an enormous air base in Suffolk with all the runways you want so why not spend the money on providing a fast transport system to London from there - plenty of room for expansion and a very willing workforce locally. Let's think for the future!

Email Message: Maybe there is another way of looking at this.

It is striking that the transport links between Heathrow and Gatwick are very poor: by coach it's about 75 minutes, by taxi or car it's not far off an hour.  Both of these take longer in heavy traffic.  There is no direct rail link. 

There was a proposal a few years ago for a high-speed rail link between Heathrow and Gatwick - potential journey time about 15 minutes.

 If this was built, the two airports could function as one hub - which would allow expansion at Gatwick to benefit all users, whichever part of the country they are coming from.

from David Pennie

Maybe there is another way of looking at this.

It is striking that the transport links between Heathrow and Gatwick are very poor: by coach it's about 75 minutes, by taxi or car it's not far off an hour.  Both of these take longer in heavy traffic.  There is no direct rail link. 

There was a proposal a few years ago for a high-speed rail link between Heathrow and Gatwick - potential journey time about 15 minutes.

 If this was built, the two airports could function as one hub - which would allow expansion at Gatwick to benefit all users, whichever part of the country they are coming from.

EPACopyright: EPA

Carolyn Fairbairn, the director general of the CBI has told the BBC that the Heathrow announcement teamed with other recent decisions, such as the go ahead for Hinkley means the UK is beginning to see a "golden age" in infrastructure investment.

Commenting about the expansion of Heathrow she said:

"This is very significant for businesses all across the UK. I've met businesses all over the country who have been looking forward to this decision for months and even years.

"This decision opens up routes to parts of the world that are growing very quickly. Provincial China for example, many of those Provinces are countries in their own right and we will be able to open up links with them and trade with them. 

"This is a real game-changer for the economy, not just in terms of the jobs it will create in the short run but in terms of what it says about what kind of country we want to be, a global trading nation."

John Stewart, chair of anti-Heathrow expansion group Hacan, a London-based pressure group "for those under Heathrow flightpaths", said "countless residents will be dismayed and distraught by this decision".

"Some will lose their homes. Some face the daunting prospect of living under a noisy flight path for the first time. And many others will get yet more planes over their heads. 

"But real doubts must remain whether this new runway will ever see the light of day. The hurdles it faces remain: costs, noise, air pollution and widespread opposition including an expected legal challenge from the local authorities."

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Sir Howard Davies, who led the government-commissioned Airports Commission which last summer recommended the expansion Heathrow has expressed his relief at the decision to go ahead.

Speaking to the BBC's business editor Simon Jack he said:

"I did begin to wonder whether three years of life had been wasted. I am pleased that the government has made a decision. Any decision is better than no decision but this one is a good decision.

"Heathrow is best placed to provide the additional connectivity that the UK wants, particularly to long haul markets such as the far east. Heathrow also has a large amount of trade passing through it whereas Gatwick's business model is to do with short haul fligtht to Europe for tourists. They carry very little in the way of air freight.

"Heathrow is also best from a national perspective. Regional airports want access to Heathrow because with one hop passengers are then in a hub from where they can access the rest of the world."

Esri UKCopyright: Esri UK

Check out this snazzy map showing the world's top 50 busiest airports, according to Airports Council International (ACI) passenger figures.

Heathrow is ranked 6th with almost 75 million passengers and Gatwick is 37th with 40 million.

Atlanta International is the busiest with 101 million passengers. Followed by Beijing Capital International with 90 million, then Dubai International with 78 million.

The interactive version, available here allows you to click on the blue circles and reveal passenger figures and the ACI ranking for each airport. Pretty cool.

BBCCopyright: BBC

Labour's Lord Soley says that he has lived near Heathrow's runways for forty years and represented the local area for twenty. 

He tells the minister that "the loudest voices are not necessarily the most representative" in the surrounding region. 

Lord Soley says that many people in the areas near the airport realise the benefit of expansion in terms of jobs and skills.

The Labour peer appeals to opponents of Heathrow expansion to "put the national need above the local issues". 

More responses from Business Live readers about the government's decision to back a third runway at Heathrow. We've had some great ones, keep them coming.  

Email Message: It is quite clear that plenty of discussion and thought has gone into this and for the sake of the country, this is the correct decision. I lived in Mobberley in Cheshire when the Manchester 2nd runway was approved, we lived very close and plenty in the area objected. Not me, if you are a user of the service, do not be surprised if the service increases and improves. In hindsight the 2nd runway has made little difference, it has brought good employment opportunities, and if anything, aircraft noise has dropped.

from Chris Denham

It is quite clear that plenty of discussion and thought has gone into this and for the sake of the country, this is the correct decision. I lived in Mobberley in Cheshire when the Manchester 2nd runway was approved, we lived very close and plenty in the area objected. Not me, if you are a user of the service, do not be surprised if the service increases and improves. In hindsight the 2nd runway has made little difference, it has brought good employment opportunities, and if anything, aircraft noise has dropped.

Email Message: This whole idea of a 3rd runway is ludicrous. 

London needs a new airport with at least 4 runways and it needs it now. This in addition to Gatwick and Stansted.

Amsterdam has 5 main runways, Paris CDG has 4 (and 3 more at Paris Orly), Frankfurt has 3, Brussels has 3 and Munich is building a 3rd. 

By the time this has been fought over and IF it's eventually built, London and the UK will have been overtaken by other major European cities as transport hubs which could mean business moving away, investment and jobs lost.

As a commercial pilot, I fly to most of the major airports in Europe and this whole discussion should be a slam dunk.

from Mark Holtby

This whole idea of a 3rd runway is ludicrous. 

London needs a new airport with at least 4 runways and it needs it now. This in addition to Gatwick and Stansted.

Amsterdam has 5 main runways, Paris CDG has 4 (and 3 more at Paris Orly), Frankfurt has 3, Brussels has 3 and Munich is building a 3rd. 

By the time this has been fought over and IF it's eventually built, London and the UK will have been overtaken by other major European cities as transport hubs which could mean business moving away, investment and jobs lost.

As a commercial pilot, I fly to most of the major airports in Europe and this whole discussion should be a slam dunk.

Email Message: The rest of the UK economy will carry a heavy cost from expanding Heathrow. By 2040, all sectors of the economy other than aviation will have cut back to the absolute minimum possible use of fossil fuels. If Heathrow expands, the rest of our economy would need to cut even further – giving up those final most valuable uses of oil and gas – to give aviation a massive carbon subsidy. It’s no surprise that the lobbyists duck this obvious economic trade-off; the government can’t afford to do so.

from David Norman

The rest of the UK economy will carry a heavy cost from expanding Heathrow. By 2040, all sectors of the economy other than aviation will have cut back to the absolute minimum possible use of fossil fuels. If Heathrow expands, the rest of our economy would need to cut even further – giving up those final most valuable uses of oil and gas – to give aviation a massive carbon subsidy. It’s no surprise that the lobbyists duck this obvious economic trade-off; the government can’t afford to do so.

Political editor Laura Kuenssberg tweets:

Conservative peer Lord True rattles off a list of concerns with the decision to expand Heathrow airport instead of Gatwick.

He says that the expansion of Gatwick would have been cheaper, would have taken less time and would have affected fewer people than the expansion of Heathrow.

Lord True also says that the people living near Heathrow "accept 500,000 flights a year over their heads and do their bit for the national interest".

Minister Lord Ahmad agrees that Heathrow expansion is more expensive, but says that it also offers greater benefits than the alternative options. 

BBCCopyright: BBC

With much of the criticism of Heathrow homing in on the environmental impact, it is interesting to note that Paul Fisher, who recently retired as deputy head of the Prudential Regulation Authority has said climate change “is potentially a systemic risk.” 

Paul Drechsler, CBI president, said:

“The Prime Minister’s green light to expand the UK’s aviation capacity comes as an enormous relief to firms in every corner of the country.

“A new runway at Heathrow is really fantastic news, especially as the country has waited nearly 50 years for this decision. It will create the air links that will do so much to drive jobs and unlock growth across the UK, allowing even more of our innovative, ambitious and internationally focussed firms, from Bristol to Belfast, to take off and break into new markets.

“This project should form part of a long-term framework for aviation capacity for the whole of the UK. Pressing ahead with key infrastructure projects like this will provide not only a welcome economic stimulus, but will show the world that we are well and truly open for business as we negotiate our exit from the EU.”

Labour's Lord Rosser tells the House that the "image of politics in this country has not been enhanced" by today's announcement in favour of Heathrow, in the light of previous "emphatic" statements against a new runway by senior Conservative Party figures in the past.

He asks if the promised year-long consultation period could lead to a "change of heart" from the government and asks if any of the other options being considered by the government are still possible. If this is the case, "uncertainty will continue for another year" he says.

BBCCopyright: BBC

We've heard a lot about the UK's need to remain competitive in terms of air travel compared to major European hubs. 

Well it seems there are no hard feelings with Amsterdam's Schiphol Airport following today's news. 

Heathrow tweeted an image of the cake with a light-hearted message suggesting passengers have been using the Dutch airport during the delay in building a third runway. 

You can see the tweets below. This isn't the first time the two airports have engaged in cake-related banter.

The Dutch airport sent a congratulatory cake to Heathrow in July last year when the Airports Commission recommended that it should be expanded.