The UK government wants to drive airport expansion. Here’s what they need to do next

Adam Fell, Principal Consultant for our Airport & Aviation Services practice, considers the airport expansion boom in the UK, what needs to occur at a political level for plans to be realised, and the impact of sector growth on talent.

Back in February, I shared an article about a topic that was in the news a lot at the time: the proposed expansion of Heathrow Airport. As you might know, particularly if you live in or near London, it’s a subject that has been rumbling on for some time – and it was back in the headlines again recently, as the government confirmed its support for the airport’s growth. It feels significant to see politicians court approval from potential backers on an infrastructure project, rather than the other way around. While some issues need to be resolved before we can take off on a third runway at Heathrow, it is nonetheless encouraging to see regular communication about the project and plans starting to come to light.     

National developments

Indeed, Heathrow is just part of a larger story about the boom in the airport sector in the UK lately. I mentioned expansion plans at Gatwick and Luton in my last article. The latter has had its Development Consent Order approved, while Gatwick’s proposal is awaiting ratification. Elsewhere, we’ve seen that Stansted is seeking to build on its existing expansion plans; Manchester recently opened a new terminal; Newcastle Airport has released its own ‘Masterplan’; Leeds Bradford officially opened its new terminal extension in June; and London City is also set to expand over the coming years.

All this hectic activity shows that UK airport owners are investing heavily, and the boom in airport infrastructure reflects well on the state of the domestic aviation industry. These transport hubs will be central for driving growth, creating jobs and critical community assets – all of which will hopefully bring further benefits to the wider economy and transport sectors alike. However, we cannot rely on private investment alone to give UK airports the boost they need.

The government needs to support airport growth

The current Labour government has acknowledged the UK airport sector’s vital role in creating jobs and driving economic growth, with air transport directly contributing £14 billion to national GDP in 2023. It’s certainly encouraging to see government interest in growing the industry further – but we’ve seen successive cabinets talk about the importance of aviation without doing much to support aviation.

With so many expansion plans on the horizon, UK airports need the government to back their claims and prove how much they value this sector. Ways of doing that include:

• Simplifying the planning process

It is important to ensure that plans are sustainable and take all stakeholders’ viewpoints into account, but too often the regulatory environment means it takes forever for blueprints to get the go-ahead. Delays add to costs, create uncertainty (not least for investors), and ultimately mean we have to wait longer for more efficient airports.

• Improving rail and road links

Making our airports bigger and better is not merely a question for on-site engineers. Increasing capacity relies on getting passengers to the airport in the first place – so it is crucial to make travel as easy and cost-efficient as possible. Better surface access to airports, both by train and bus, would go a long way – and the government can do a lot to push this.

• Supporting decarbonisation with policy and regulation

Rachel Reeves pointed to sustainable aviation fuel (SAF) as a driver of greener growth in the UK airport sector. However, current supply levels do not meet demand – and in any case, SAF is just part of the picture and not explicitly related to sustainability efforts on the ground in airports. For instance, government backing for the replacement of airport maintenance vehicles with electric models would be welcome.

Why is government support so important?

 

Setbacks that could befall UK airports without political input include:

• Elongated planning processes for investors

A backdrop of red tape, appeals, and delays may put backers off investing in airport expansion proposals – not something that the sector can afford if it wants to stay competitive.

• The risk of falling behind international rivals

International hubs such as Schiphol, Frankfurt, Dubai, and Istanbul are all at various stages of ambitious new development. A lack of investment now means UK airports risk lagging behind sector leaders – not to mention lose talent to them.

• Missing out on economic growth

Both at national and regional level, development plans for airports should drive the economy and create jobs – neither of which will happen without government support.

• Impacts on operational performance and customer experience

Investment and innovation will make for smoother journeys, less congestion, and greater customer satisfaction. If airports are not modernised, they will be less pleasant and efficient, as well as harder to navigate.

• Decarbonisation targets will be affected

The government needs the aviation sector on side if it is to meet its green objectives. Sustainability is a huge part of any airport expansion plan, and improving ESG metrics across UK aviation is a must.

What do the plans mean for talent?

Government support will play a key role in helping the UK airports hold on to the brightest and best talent, which shall be crucial for the successful realisation of these plans. Driving infrastructure growth domestically means attracting suitable candidates across a variety of disciplines.

For instance, aviation construction talent will be drawn to major expansion projects like Heathrow, Gatwick and Stansted, while top commercial and operational leaders will seek to build passenger numbers while boosting operational excellence. A large factor in the latter, particularly, comes down to hiring and retaining digital leaders that can bridge the gap between new technology and operational delivery in an airport environment.

Given the demand for AI and CX professionals – not least from other industries – this will likely be challenging, though digital innovation must be a cornerstone of any development plans for UK airports. Hitting sustainability objectives and advancing customer experience will require top digital and tech professionals; hopefully, the creation and delivery of cutting-edge programmes of work will help to retain the most capable talent for the benefit of UK infrastructure.

Final thoughts

It may be a while yet before we get to enjoy these brand-new airports, though it is very encouraging to see the plans coming together. I will be watching further developments with interest.

Meanwhile, if you need advice about hiring infrastructure, operations, tech, or services talent for your airport project – or if you are a professional who would like to work on such a project – don’t hesitate to get in touch.