1. Importance of Northern Ireland access to Heathrow Alan Walker General Consumer Council for Northern Ireland 4 May 2004

2. “ Making the consumer voice heard – and making it count”

3. Contents Current situationCurrent situation Importance of Heathrow to Northern IrelandImportance of Heathrow to Northern Ireland What we want doneWhat we want done

4. Current Situation NI consumers have a high propensity to fly despite significantly lower incomesNI consumers have a high propensity to fly despite significantly lower incomes Northern Ireland has access to all five London airportsNorthern Ireland has access to all five London airports Belfast Heathrow services have fallen from 15 to 8 since 2001Belfast Heathrow services have fallen from 15 to 8 since 2001 Approx 25% of Belfast-Heathrow passengers are interliningApprox 25% of Belfast-Heathrow passengers are interlining Lack of direct air servicesLack of direct air services Vast majority of new growth ‘no frills’ or ‘hybrid’ airlinesVast majority of new growth ‘no frills’ or ‘hybrid’ airlines

5. Importance of Heathrow to Northern Ireland National integrationNational integration Business TravellersBusiness Travellers Northern Ireland EconomyNorthern Ireland Economy TourismTourism

6. National Integration Regional peripherality - Northern Ireland and other peripheral regions should have access to UK’s main hub airportsRegional peripherality - Northern Ireland and other peripheral regions should have access to UK’s main hub airports Social inclusionSocial inclusion Lack of interlining opportunities at other London airportsLack of interlining opportunities at other London airports Northern Ireland consumers have no realistic travel alternative to LHRNorthern Ireland consumers have no realistic travel alternative to LHR

7. Business Travellers Northern Ireland manufacturers spend £33m per year of which 58% is on air travelNorthern Ireland manufacturers spend £33m per year of which 58% is on air travel 70% of business travel in financial & business sector and 93% in construction sector is by air70% of business travel in financial & business sector and 93% in construction sector is by air Important markets in USA, Canada, AustraliaImportant markets in USA, Canada, Australia Growing importance to all business sectors.Growing importance to all business sectors.

8. Importance of LHR to NI business Source: Oxford Economic Forecasting, Northern Ireland Air Services Study

9. Northern Ireland Economy 39% of Northern Ireland manufacturing sales are to the rest of the world39% of Northern Ireland manufacturing sales are to the rest of the world 19% in UK as a whole19% in UK as a whole NI employment over dependent on slow/low growth sectors i.e agriculture, textiles, public administrationNI employment over dependent on slow/low growth sectors i.e agriculture, textiles, public administration Inward investmentInward investment Impact of tourismImpact of tourism

10. Tourism 250,000 overseas residents use Heathrow to enter NI. 8 times more likely to use LHR than any other airport250,000 overseas residents use Heathrow to enter NI. 8 times more likely to use LHR than any other airport Over 450,000 UK passengers use Heathrow to access NIOver 450,000 UK passengers use Heathrow to access NI Huge growth opportunitiesHuge growth opportunities Need to get people to Northern Ireland rather than visiting itNeed to get people to Northern Ireland rather than visiting it

11. Out of state visitors - 2000 Source: Oxford Economic Forecasting, Northern Ireland Air Services Study

12. Out of state visitors - 2000

13. What we want done Urgent Government action to change PSO rules at EU levelUrgent Government action to change PSO rules at EU level Region to specified airport designation requiredRegion to specified airport designation required Reservation of slots for regionsReservation of slots for regions Protection now and in the futureProtection now and in the future Airlines that currently provide regional access should not be unfairly penalisedAirlines that currently provide regional access should not be unfairly penalised

14. Conclusions Heathrow is of utmost importance to Northern IrelandHeathrow is of utmost importance to Northern Ireland Market is not the appropriate mechanism to decideMarket is not the appropriate mechanism to decide Government need to take steps to secure regional access now and in the futureGovernment need to take steps to secure regional access now and in the future

15. Thank you