Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Monday, June 29, 2009

Clearing the Air: The Myth and Reality of Climate Change and Aviation


You may wish to read the excellent report by the European Federation for Transport and Environment...point 3 blows away Peter Simpson's, of British Airways Cityflier, unsubstantiated claims about the 'better for the community' Embraers he is introducing to London City Airport (of course if Peter would like to pass the data over, along with the methodology he used to make such claims, then he knows our email address). In fact the whole report puts into question most of what the aviation lobby uses as it's 'formula' to justify the threat of continued greed not need expansion:

Executive summary:
  • in 2000, aviation was responsible for 4 to 9 per cent of
    the climate change impact of global human activity – the
    range reflecting uncertainty surrounding the effect of cirrus
    clouds
    ◗ aviation has by far the greatest climate impact of any transport
    mode, whether measured per passenger kilometre, per
    tonne kilometre, per € spent, or per hour spent
    ◗ today’s passenger aircraft are no more fuel-efficient than
    those that flew half a century ago
    ◗ the importance of aviation for the economy and employment
    is far less than its importance for climate change
    ◗ every segment of the aviation industry including manufacturers,
    airlines and airports is subsidised and enjoys major tax
    exemptions

Section 2 examines some of the policy options under consideration
to combat the climate impact of aviation
.
The main conclusions of this section of the report are:

  • ◗ regional initiatives, such as those under discussion at EU
    level, provide the best hope for a multi-lateral solution to
    international aviation emissions for the foreseeable future

  • ◗ EU-level action does not affect the competitive position
    of EU airlines compared with their non-EU competitors,
    provided that policies do not discriminate between EU and
    non EU carriers flying the same routes (which is obligatory
    anyway under the Chicago Convention)

  • including aviation in the European Emissions Trading System
    (EU ETS) can be a good first step, provided the system is
    designed right
    additional measures like kerosene taxation and Nitrogen
    Oxide (NOx) emissions charges at airports are not only
    environmentally important but also justified in terms of cost
    effectiveness

  • aviation is overwhelmingly an activity of the richest elements
    of society, measures to combat the environmental impact of
    aviation would not adversely impact the poor

  • a ‘development tax’ on tickets is a good way to make up
    for the VAT exemption of international air tickets and would
    benefit poor regions, not hurt them

And you may wish to consider the following information against the recent report that 55% of children in the London Borough of Newham live in poverty - after 20 years of the airport running, and it claiming to have brought prosperity to Newham:

More expensive air travel is bad news for the poor.

“Air transport contributes to citizens’ desire for more travel at
democratic prices.”
AEA 2006

REALITY
It’s the rich that fly, even in this era of low-cost
carriers – if aviation paid its true costs we could
help the poor a lot more
.

All italicised extracted from:
http://www.transportenvironment.org/Publications/prep_hand_out/lid:430
Pictured above: Cirrus clouds

Wednesday, June 24, 2009

London City Airport's Economics - The FACTS

London City Airport costs London taxpayers over £5million a year in Metropolitan Police security costs

LCA costs taxpayers, per passenger 1000% (£1.70) more than Heathrow passengers

Each direct aviation job receives a tax subsidy of £50,000 per year, £1000 per week or £25 per day by way of the £9billion lost in fuel tax and vat which the aviation industry are excused from paying

In 1998, at the last expansion, London City Airport promised jobs would go from 1100 to 4000 direct and indirect jobs


In 2008 the airport claims to have 'created' 2000 jobs – but there is no hard evidence – this falls short by 2000 of their claims in 1998

In 2008 the airport directly employs just 406 people, of which 120 come from Newham

The airport has failed to meet the employment targets as set out in the section 106.

Newham residents should make up 35% of employees, they make up 29%.


Local employment (local regarded as a five mile radius) should be 70% but is 68%.

Newham is the most socially deprived borough in London and England, even after 20 years of the airports claimed effect on regeneration on the community


London City Airport contributed a 'small contribution of £2million' to the DLR which cost £140million – this was questioned by the Transport Select Committee, May 2007

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London City Airport and the aviation industry are nothing more than modern day highwaymen...stand a deliver your taxes now!!