Recent research 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, the new report by York Aviation looked at five different scenarios for growth in first of its kind research.
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.”
Key findings of ‘The West Midlands Aviation Opportunity’ report include:
|Scenario||Resulting growth in the UK – GVA* per year||Resulting jobs in the UK|
|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.||£521 million by 2025
£331 million by 2025 in the West Midlands
|12,000 by 2025
7,650 by 2025 in the West Midlands
|When complete, HS2 can enable Birmingham Airport to attract around 750,000 additional passengers.||£52 million
£34 million in the West Midlands
950 in the West Midlands
|If Midlands east-west journey times to Birmingham Airport were improved by 15 per cent via new road and rail investment, passenger numbers at BHX could increase by 900,000.||£63 million
£41 million in the West Midlands
1,150 in the West Midlands
|Expansion of long-haul connections to Birmingham Airport.||£425 million
£248 million in the West Midlands
5,100 in the West Midlands
|Having a Middle Eastern or Asian airline basing a hub at Birmingham Airport.||£292 million
£173 million in the West Midlands
3,550 in the West Midlands