Flights of Fancy?

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SANE INFORMATION BULLETIN
21st March 2003

The Economics of Airport Expansion
The recent expansion in flights from Swansea Airport was promoted by claims that it would create 50 new jobs. Twenty scheduled flights now pass over the Gower and Western Swansea every day, and while council tax-payers shoulder the extra burden of pollution and noise, less than five jobs have materialized.

Supporters claim that a move toward a busy international airport on the Gower will bring an economic boost to Swansea's economy. There is little evidence to support this claim and much to support the contrary; extra flights mean higher costs to the economy, both locally and regionally.

These costs fall in three broad areas:
o indirectly and directly to people's health,
o for transport infrastructure serving the airport, and
o in unsustainable subsidies for the aviation industry.

More Traffic
The new ATR42 planes have up to 50 seats. A conservative estimate for the traffic generated by each flight is 25 cars (500 cars/day). A fair proportion of these, say 300 cars/day will be left at the airport while their owners are away. If owners stay away for a number of days the car park could hold over a thousand cars at any one time. The visual impact will be significant.

Sadly, car crime is high in this area and the security aspect for that number of cars should also be considered. Traffic speeds are fast along the stretch beside the airport and it affords one of the few safe passing places. A large increase in traffic volume near the airport junction is inviting an increase in accidents.

Existing congestion in Killay and Sketty is severe at times. Any expansion in traffic volumes can only make the situation worse.
Good for Business? Economic Myths and Spin

Reliance on research sponsored by the airlines has produced some very shaky arguments. The following examples are all taken from the Department for Transport consultation documents published in July 2002.

¨ "Aviation is itself a high productivity industry..." Simple economic fallacy: an airline pilot appears to have high productivity because he is operating an expensive piece of equipment. But when the cost of the capital is deducted, productivity is no higher than in any other industry.

¨ ".... and it adds to the productivity of the wider UK economy." Improved transport is said to lead to economies of scale, increased specialisation, and stiffer competitive pressures on companies. The decline in Welsh agriculture as a result of cheap air freight is a good example. Damage from global climate change is on the increase.

¨ Business travel promotes productivity. But according to John Humphrys "Those businessmen would be better off staying at home and using a telephone or e-mail or video conferencing. We could probably double our productivity if we put to better use all the time spent by all those middle-ranking executives in airport lounges and business-class seats."

¨ "Inward tourism is worth about £13 billion to the UK each year... "At present the number of UK tourists travelling abroad is almost double the number of foreign tourists visiting the UK.

¨ "The increase in foreign direct investment...". The theory is that more airport capacity would enable more foreign businessmen to fly in and invest in the UK. KPMG asked 801 top executives of foreign-owned firms in Britain what factors influenced their decision to locate here: the main factor was quality of life.
Sewill, Brendon 2003 The Hidden Cost of Flying Aviation Environment Federation
Aviation is the most unsustainable form of transport. Expanding the airport contradicts Swansea Council's policy commitment to sustainable development: Corporate Aim No. 4.

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