Airfreight services are a key ingredient in the UK economy. Without them, we simply would not be competitive or viable as an international centre of business and there would be no chance of seeing green beans from Kenya on our shelves in March.
The aviation industry itself is responsible for more than 500,000 jobs in the UK, but it is the wider range of businesses that these services benefit - the retail sector, for example - which makes it so important.
Transporting fresh produce by air is the only way to meet the increasing customer demand for the freshest and highest-quality fruit and vegetables year round. Perishable items such as fresh produce and flowers (organic or otherwise) rely heavily on airfreight, without which the developing regions in which they are produced, such as Africa, Latin America and Asia, would lose a major source of revenue.
Sadly, market access using airfreight is being threatened by organic standard setters and from major UK retailers that are introducing airfreight labelling and carrying “no airfreight” sourcing policies.
Air transport only accounts for 0.5 per cent of the UK’s international goods movements by weight. To put this in context, seafreight commands a whopping 95 per cent and the Channel Tunnel accounts for the remaining 4.5 per cent. But where it really matters is when one measures goods moved in terms of their value. Here, airfreight soars to 25 per cent of all movements.
But why is this so when it is the most expensive and one of the most polluting transport modes? The answer is that for these types of goods - such as perishable goods that can be moved in small quantities or high-value manufacturing components needed for just-in-time industrial processes - there is no viable alternative, and this is especially the case for a small island such as the UK.
Aviation is a political hot potato at the moment. The industry took a collective sigh of relief late last year when the government abandoned its ‘per-plane’ aviation tax in favour of air passenger duty. Rather than acting as an environmental measure, the proposed tax would have placed a real strain on companies operating in a difficult field. It would also have been an inefficient way of raising money to fill the Treasury’s coffers.Other European countries do not tax airfreight and so the UK would have been put at a competitive disadvantage and services to this country would have reduced.
In the same vein, Geoff Hoon MP made the right decision to green light a third runway at Heathrow, which is needed to secure Britain’s status as the commercial hub of northern Europe. Heathrow accounts for more than half of the UK’s airfreight by weight, so its operational efficiency has a huge impact on UK and international business. But even with three runways, Heathrow will still be a poor relation in comparison to rivals such as Schipol Airport in Amsterdam with five runways, and Charles de Gaulle in Paris with four. A third runway would be accompanied by strict new emissions standards for aircraft, which will mean that only the most fuel-efficient aircraft will be allowed to use it.Environmentally harmful holding patterns could also be reduced thanks to the extra runway capacity.
But we are not holding our breath just yet, as planning permission to start building the runway is unlikely until after the next general election. With opposition parties seemingly against any expansion whatsoever, Heathrow’s future as northern Europe’s commercial hub remains in jeopardy.
The single most important thing to consider when regulating aviation is that it is a global activity. The UK acting alone will not change aviation, but merely disadvantage its economy.If the UK restricts the growth of its airports or taxes airfreight, business will simply switch to the continent, reducing the level of service and increasing costs in the UK.
The future incorporation of aviation into the EU’s Emissions Trading Scheme is, potentially, the most effective tool for managing the impacts of aviation - but action at EU level and any subsequent discussion must be done with industry at the forefront of consideration.
TAKING FLIGHT
• Airfreight accounts for around 0.6 per cent of UK carbon dioxide emissions.
• Airfreight represents only 0.5 per cent of the UK’s international goods movements by weight, but 25 per cent by value.
• More than one million African rural livelihoods are supported by UK consumption of their fruit and vegetables.
• Air services are particularly important for UK trade with fast-growing emerging economies, such as China, and for trade in high-value goods and services.
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