Thousands more jobs and millions of pounds in growth possible according to new report.
Latest research released today has found that if the West Midlands and Birmingham Airport are able to make the most of HS2, reform Air Passenger Duty and support the continued growth of new routes, the airport will be able to deliver millions of pounds in growth and thousands of jobs to the region and UK as a whole.
The report, titled The West Midlands Aviation Opportunity, highlights the economic impact and potential of Birmingham Airport. Launched six weeks after the region released its HS2 Growth Strategy, this new report by York Aviation looked at five different scenarios for growth in first of its kind research.
Key findings of The West Midlands Aviation Opportunity report include:
Cutting Air Passenger Duty by 100% at non-congested English airports including Birmingham Airport, alongside predicted cuts in Scotland and Wales, would result in the airport serving 2.9 million more passengers by 2025.
When complete, HS2 can enable Birmingham Airport to attract around 750,000 additional passengers.
If Midlands east-west journey times to Birmingham Airport were improved by 15 per cent via new road and rail investment, passenger numbers at the airport could increase by 900,000.
The expansion of long-haul connections to Birmingham Airport would bring in an additional £425 million of annual growth, £248 million in the West Midlands alone, and create an additonal 8,000 jobs.
Having a Middle Eastern or Asian airline basing a hub at Birmingham Airport would bring in £173 million annually to the region and create 3,550 jobs.
The report found that Birmingham Airport contributed £1.7 billion in GVA and 39,850 jobs to the UK in 2014. Across the West Midlands, its contribution was around £1.1 billion and 25,300 jobs.
Paul Kehoe, CEO of Birmingham Airport said: “This report clearly demonstrates the vast potential of Birmingham Airport as an economic driver, not only to the West Midlands, but to the UK as a whole. The impact of the Airport is in the same bracket as the positive impact HS2 will have on our region and, as a region, we need to do everything we can to make as many of these scenarios become a reality.”
Paul Faulkner, CEO of Greater Birmingham Chambers of Commerce added: “Birmingham Airport is a vital cog in driving the Midlands Engine for Growth, providing the connectivity that our thriving businesses need to trade, export and secure investment. The central message of this report is that, to build on this success, our region must work hand in hand with central government to grasp new global opportunities for the country.
“Now is the time to work together to make the most of HS2, reform Air Passenger Duty and support the continued growth of new routes to destinations around the world, to plug our region into new markets and enable us to play our full part in rebalancing the economy.”
Andy Street, Chair of the Greater Birmingham and Solihull LEP said: “The scenarios highlighted in this report show the contribution Birmingham Airport is making, and can make, to the future of our region. If we all work together I am confident we can create the right conditions for the Airport to contribute significantly to the GBSLEP region in terms of growth and job creation over the next few years.”
“We are currently working closely with Birmingham Airport and other partners across the region to maximise the benefits of HS2, and are calling on the Government to invest in the new transport connectivity we need to make the most of this opportunity. This report shows how important getting this right is for our economy.”
Talking at this morning’s launch of the report, Paul Kehoe described the airport’s potential expansion as a “40,000 job opportunity” and claimed that together with the proposed HS2 development it provides a transport link with London that will “be the envy of the world.”