clive wright

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Aviation: Competition and Co operation Aviation: Competition and Co-operation Briefing to RAF Air Power Conference July 2015 Briefing to RAF Air Power Conference July 2015 Moving Britain Ahead

TRANSCRIPT

Aviation: Competition and Co operationAviation: Competition and Co-operation

Briefing to RAF Air Power Conference July 2015 Briefing to RAF Air Power Conference July 2015

Moving Britain Ahead

The aviation industry is critical to the UK, both as an industry in its own right, and supporting

wider business activityOverview

of the industrywider business activity industry

Third largest aviation network in the world after US and ChinaDirect air links to 98 countries and a further 79 countries with one stop en routeThe aviation sector (aerospace) contributes at least £16 billion per year to the UK economy (GVA) plus more indirectly. [Source: ONS] Around 230,000 people are directly employed by the aviation sector, with many more employed indirectly. [Source: ONS]G d h £100b hi d b h UK d EU i 40% f hGoods worth over £100bn are shipped between the UK and non-EU countries - over 40% of the UK’s extra-EU trade by value. [Source: HMRC]

Inward tourism by air makes up three quarters of foreign visitor holiday spending, with all visits g y p g,by air directly contributing over £17.5bn to the UK economy [Source: ONS] Tax revenues from the aviation sector are £8.7bn per year [Source: Oxford Economics, based on corporation tax, income tax on employees and APD]

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EU28

North Other EuropeA iAmerica Asia

507 64 20950 11 3572 9 41

43 10 42

AfricaLatin America & Caribbean

19 4 26

Flights to the UK (thousands per year)

8 2 1919 4 26

Passengers flying to the UK (millions per year)

Number of destinations with a direct weekly service to the UK

The UK has a direct service at least weekly to over 370 international airports in around 100 countries

Around 8% of inbound international passengers come from airports in Africa and the middle east the regions that concern Around 8% of inbound international passengers come from airports in Africa and the middle east, the regions that concern us more. Over 73% of inbound international passengers come from European airports.

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As an international business, Aviation is subject to global European and domestic rules

Who does what? global, European and domestic rules

The International Civil Aviation organisation of which the UK is aThe International Civil Aviation organisation, of which the UK is a Council Member, sets global standards for safety, security and

environmental issues.

The EU is preparing a package on aviation for consultation this autumn which will include competition issues The Europeanautumn, which will include competition issues. The European

Aviation Safety Agency (EASA) sets standards for safety across the European single aviation market, and its role is also up for review The reform of air navigation services across the EU isreview. The reform of air navigation services across the EU is taking place through the EC’s Single European Sky initiative.

The UK Civil Aviation Authority (a statutory corporation like the BBC) regulates other safetycorporation like the BBC) regulates other safety

functions and is also the security, passenger rights, airspace and competition regulator

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CONTEST 4 P’sCONTEST – 4 P s

PREVENTterrorism by tackling its underlying causes

To reduce the

PURSUEterrorists and those that sponsor them

threat

PROTECTthe public and UK interests

To reduce the risk

the public and UK interests

PREPARE

To reduce vulnerabilityPREPARE

for the consequences

y

Moving Britain Ahead

Terrorism Risk Mitigation

1. JTAC – modal threat assessments1. JTAC – modal threat assessments

2. DFT/CAA – responsible for (i) risk assessment and (ii) tti d i t i i f t ti it

2. DFT/CAA – responsible for (i) risk assessment and (ii) tti d i t i i f t ti it(ii) setting and maintaining programmes of protective security

requirements and guidance(ii) setting and maintaining programmes of protective security

requirements and guidance

3. INDUSTRY – “directed” to undertake security measures3. INDUSTRY – “directed” to undertake security measures

4. CAA – test, monitor and enforce compliance4. CAA – test, monitor and enforce compliance

5. DfT/CAA – Incident response5. DfT/CAA – Incident response

Moving Britain Ahead

Aviation security is a continuing priority with key judgements for Ministers across Government about the

The security

challenge

balance between risk management and business impact

Aviation security is a significant part of Aviation security is a significant part of the regulatory landscape facing airlines and airports and one where we work in close partnership with Home Office and p pNational Security Council

It is always difficult to get the right balance between managing risk and keeping the passenger experience positive

At the moment, we are growing our bilit t th i k i icapability to manage the risk arising

from flights coming into the UK, while ensuring that regulation on outbound flights is effective and proportionateflights is effective and proportionate

The Counter-Terrorism and Security Act 2015 strengthened the Secretary of State’s powers to direct foreign carriers to undertake specified security measures as a condition of flying into UK airspace.

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A i ti S it OAviation Security Overseas

We can impose security standards at UK airports, and protect our citizens on flights leaving the UK. But when they fly back, or anywhere else in the world, they depend on the security regime overseas

rs

overseas.

We have some of the highest security standards in the world. The US has robust security standards too, and the EU “baseline”

urity

-Br

iefin

g fo

r new

Min

iste

r

ystandards are being updated to address the latest threats. But we have concerns about security in a number of countries that are easily accessible from conflict zones from where terrorists may operate.

Avia

tion

Secu

p

The Counter-Terrorism and Security Act 2015 strengthened the Government’s powers to direct foreign carriers to undertake specified security measures as a condition of flying into UK airspace.

uly

2015

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Assurance

We are expanding our network of “aviation security liaison officers” They work with overseas airports

Our work with other countriesliaison officers . They work with overseas airports, airlines and governments to raise security standards, as well as providing important information for us on security weaknesses. Some of them are based overseas

Since 2011, DfT has delivered:

75 Aviation Security training courses; in overseas.

O C it D l t

some 30 different countries;

to more than 1,600 security staff. Overseas Capacity Development

We also provide assistance to other states where we see vulnerabilities they are otherwise unable to

dd d h th i ht t UK iti t i kaddress, and where these might put UK citizens at risk;

This work (c£1m per annum) is funded through successful bids to the Foreign and Commonwealth Offi C T i b d Africa 2014: Levant 2014: Gulf 2014: trainingOffice Counter Terrorism budget.

Support is mostly in the form of training, but can include equipment, consultancy and hosting inward visits.

Africa 2014: counter-Portable

Missile (ManPADS)

training

Levant 2014: training for

security staff in Explosive Trace

Detection

Gulf 2014: training on implementing

enhanced screening measures

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Moving Britain Ahead

O fl i fli t h t d i ?

The loss of MH17 over Ukraine focused the world’s

Overflying conflict zones – what are we doing?

attention on the risks from anti-aircraft weaponry.

For many years the Government has been idi d i t UK i b t i k fproviding advice to UK carriers about risks of

overflying conflict areas, where we have relevant information to pass on. Since MH17 there has been a cross-government effort to gather all the relevant i f ti th t h ldinformation that we hold.

There were many nationalities among the dead from MH17 including Britons So briefing only UKfrom MH17, including Britons. So briefing only UK carriers will not protect those Britons on other flights. The UK led a push at international level to share information on the risk of overflying conflict zones with all carriers Where the details cannot bezones with all carriers. Where the details cannot be given, at least we would make known that we had issued a warning.

The UK was recently the first country to make its warnings available for all airlines and states to see on an ICAO-hosted global website.

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Ai P C f C ti d C titiAir Power Conference: Co-operation and Competition

Certain air corridors narrowing. No overflights of Libya (a rare formal direction to UK carriers). Strong advice to avoid Syrian airspace. Caution below 25,000 feet AGL in South Sudan, Northern Sinai, Yemen, Iraq and elsewhere. Flights to e.g. India are largely forced down across Turkey then Iran;

Regional instability squeezing UK carriers. Tunisia the latest (and saddest) example. Egypt no stranger to terrorist incidents targeting foreign tourists (Luxor, Taba bus bomb) but have recovered and are trying to hold the line;

f f Turkey sits alongside a fractious neighbourhood, trying to balance numerous priorities, from Kurdish political aspirations domestically to its military prowess in Syria and Iraq; from ISIS-inspired terrorist attacks to handling hundreds of thousands of displaced and refugees from Syria. And all the while hoping to boost tourism levels;tourism levels;

Over 400 flights a month link the UK and Turkey, with 12 carriers operating out of 8 Turkish airports, handling the vast bulk of almost 2.5 million British tourists per year;

In Egypt at the height of the season some 180 flights will take off each week to the UK from four regional In Egypt at the height of the season, some 180 flights will take off each week to the UK from four regional airports, plus Cairo

UK carriers and other civil airlines compete head-on with the military in certain countries, where a joint military-civil airfield will suddenly close for a military-related rotation or a VIP arrivalmilitary-civil airfield will suddenly close for a military-related rotation or a VIP arrival

Carriers who were flying over Ukraine before MH-17 had to contend with corridors divided up across the west of country that included lanes reserved for military use

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Ai P C f C ti d C titiAir Power Conference: Co-operation and Competition

Conclusions

UK carriers’ appetite for risk only takes them so far. Long-established, larger, scheduled carriers have the UK carriers appetite for risk only takes them so far. Long established, larger, scheduled carriers have the Risk Management capability that charter operators may lack. But the latter are catching up, fast;

Horrific events like MH-17 obviously un-nerve carriers and passengers alike, but are exceptionally rare; Aviation remains an iconic target for certain terrorist organisations determined to defeat security measures at Aviation remains an iconic target for certain terrorist organisations, determined to defeat security measures at

airports and smuggle an explosive device onto one or more aircraft, including into the cabin; The combination of threat and vulnerability at certain airports means the residual risk of this type of attack,

un-checked and lacking any mitigation remains high Howeverun checked and lacking any mitigation, remains high. However …. For DfT, this inbound risk is therefore about helping foreign airlines, airports and governments deploy security

measures, equipment and practices that mitigate that threat and make the location far less vulnerable With UK carriers our task is to turn natural competitors into effective co operators sharing security With UK carriers, our task is to turn natural competitors into effective co-operators, sharing security

experience and assisting us as we lobby for improvements overseas. It’s a role that our carriers have adopted with gusto.

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