Heathrow launches Heathrow 2.0 sustainability strategy and centre of excellence plan

Heathrow

By Heathrow

Published 28th February 2017

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Speaking at the BCC’s Annual Conference, Heathrow Chief Executive John Holland-Kaye unveiled Heathrow 2.0, the airport’s new sustainability leadership strategy which aspires to make the airport a centre of excellence for the aviation industry. The strategy announces ambitious goals to reduce the airport’s and the industry’s environmental impacts while maximising economic opportunities throughout the UK.

  • Heathrow 2.0, the airport’s new sustainability strategy, launches new initiatives to make Heathrow into a centre of excellence for aviation

  • Plans include a new R & D incubator, an ambition for growth from a new runway to be carbon neutral and at least halving the number of late-running departures to reduce noise for local communities

Heathrow 2.0 was drafted with input from environmental groups, academics, community leaders, as well as Heathrow colleagues, passengers, commercial partners and suppliers.

As part of Heathrow 2.0, the airport has invested an initial £500,000 in its first R&D incubator to minimise aviation’s impacts like noise and carbon emissions. Heathrow will consult leading experts to identify participants from the aviation industry, academia and business. By the end of the year, more funding sources will also be identified so that the incubator opens its doors in 2019.

What’s in the strategy? 

Heathrow 2.0 (Heathrow.com/Heathrow2.0) puts forward targets to deliver a sustainable future for aviation. It includes an aspiration to make growth from a new runway at Heathrow carbon neutral, and the use of 100% renewable electricity at the airport from 2017 in a major step toward creating a zero-carbon airport. It also proposes establishing an airside ultra-low emission zone by 2025, to improve quality of life through cleaner air.

Heathrow 2.0 also outlines new initiatives for the benefit of local communities – including a voluntary Quiet Night Charter seeking to at least halve by 2022 the number of flights on non-disrupted days leaving late after 1130pm. Heathrow 2.0 launches a “Fly Quiet and Clean” league table, which will publicly rank airlines according to their noise and emissions.

Finally, Heathrow 2.0 aims to deliver a better working place for colleagues by creating 10,000 apprenticeships by 2030 with a third runway, and publishing a roadmap in 2017 setting out how to transition Heathrow’s supply chain employees working at the airport to be paid the London Living Wage.

“Heathrow 2.0 is a step-change”

Speaking to participants at the BCC conference, Heathrow Chief Executive John Holland-Kaye said, “Heathrow 2.0. is a step-change for our business, and accelerates the shift in our industry towards a sustainable future for aviation.”

By focusing on the long-term, and through working together, we can deliver a world-leading economy – innovative, competitive, successful and sustainable. And we can create a future where our business, our people, our communities, our country and our world, can all thrive.

– Heathrow CEO, John Holland-Kaye

Find out more via our dedicated Heathrow 2.0 site section – here.

Heathrow’s financial results released today show that passenger numbers, service levels, revenues and cargo levels all increased in 2016 – all while passenger charges fell by 1.0%.

The strong financial performance underpins Heathrow’s expansion plans with revenue of £2,807 million (+1.5%) and Adjusted EBITDA of £1,682 million (+4.8%) reflecting continued cost control and strong retail income growth.

Significantly, the airport was able to grow while delivering even better value to a record 75.7 million passengers (+1.0%), with passenger charges reducing by 1.0%. This has been further boosted by the introduction of Heathrow’s departing domestic passenger charge discount of £10 as of 1 January this year.

Heathrow’s world-class facilities and services were recognised with three Skytrax awards, including the Best Airport in Western Europe.

New routes, new markets and increased cargo… looking ahead

Heathrow – the UK’s busiest port by value –  continues to deliver for the UK economy with a 3.0% increase in cargo volumes helping to promote British trade growth. This was also complimented by Heathrow’s £674 million investment in the airport helping to support British jobs.

During 2016, new direct services to Jakarta (Indonesia Garuda), San Jose, Santiago and Inverness (British Airways) also opened up new opportunities for UK businesses.

Looking to the future, Heathrow expansion moved into the delivery phase as the Government announced its support for a third runway and launched a 4-month public consultation on its draft National Policy Statement.

A more resilient UK economy boosted passenger volumes at the end of 2016, with the trend continuing into the early weeks of 2017.

“2016 was a milestone year for Heathrow”

Heathrow CEO John Holland-Kaye said he was “proud” of the airport’s results.

2016 was a milestone year for Heathrow. I am very proud of what our 76,000 colleagues have achieved. We gave better service at lower cost to a record number of passengers and helped British businesses across the country trade more with the rest of the world.

– Heathrow CEO, John Holland-Kaye

“We have started the planning process for expansion and are preparing the skills and the supply chain we will need to build it sustainably and affordably. Heathrow is delivering for Britain. We have started the planning process for expansion and are preparing the skills and the supply chain we will need to build it sustainably and affordably. Heathrow is delivering for Britain.”

The numbers…

At or for year ended 31 December 2016  2015 Change (%)
(£m unless otherwise stated)
Revenue 2,807 2,765 1.5
Adjusted EBITDA(1) 1,682 1,605 4.8
Cash generated from operations 1,652 1,592 3.8
Cash flow after investment and interest(2) 387 361 7.2
Pre-tax profit(3) 267 223 19.7
Heathrow (SP) Limited consolidated net debt(4) 11,908 11,745 1.4
Heathrow Finance plc consolidated net debt(4) 13,005 12,670 2.6
Regulatory Asset Base 15,237 14,921 2.1
Passengers (m)(5) 75.7 75.0 1.0
Retail revenue per passenger (£)(5) 8.09 7.58 6.7

 

Over 6,000 local young people, a new record, were able to get information on careers with over 100 of the biggest companies operating at Heathrow as the airport hosted its 10th annual Jobs and Careers Fair, earlier this week.

Local school, college and job seeker groups who visited were able to talk directly to a wide-range of big brand employers such as British Airways and Ted Baker, as well as former Secretary of State for Education and Employment Lord David Blunkett.

Lord David Blunkett, now the Heathrow Skills Taskforce Chairman, said the event highlighted the wide variety of career and training opportunities on offer at the airport.“

Heathrow’s commitment to deliver apprenticeships, entry-level careers and graduate opportunities is evidenced in the Jobs and Careers Fair, which brings together over one hundred airport employers, all willing to find and grow local talent,” Lord Blunkett said.

The British Airways stand was adjudged the best at the fair.

“The Skills Taskforce I chair is also helping children in schools today get the skills they need to become the next generation of airport managers, engineers and air traffic controllers, so that they can take advantage of the opportunities created by the airport’s expansion.” – Heathrow Skills Taskforce Chairman, Lord Blunkett

Heathrow CEO: Event highlights “world of opportunity at Heathrow”

Heathrow Chief Executive John Holland-Kaye, who also attended the event, emphasised that the “world of opportunity at Heathrow” represented at the fair is set to grow even larger with the new jobs and apprenticeships expansion at the airport will create.

The Heathrow Jobs and Careers Fair is a chance for young people to see what kinds of jobs are available to start their careers at Heathrow. With over 76,000 colleagues based at the airport, there is a world of opportunity at Heathrow, allowing young people to go as far as their talent and ambition will take them.

– Heathrow CEO, John Holland-Kaye

“With the Government recently announcing its support for expansion, new opportunities are just around the corner. At the airport alone, we will create 40,000 new jobs and 10,000 apprenticeships – and we want to ensure that young people from our local communities can become the pilots, accountants and service professionals of the future”

More about the jobs and careers fair

Heathrow, which already supports one in five jobs in the local area, is working to help its 400 on-site businesses, such as airlines and retailers, to recruit even more apprentices, graduates and skilled workers from the airport’s local communities.

The annual Heathrow Jobs and Careers Fair is the UK’s largest single-day careers event and was first held in 2008. This year’s event was held at the Softel, Heathrow Terminal 5, from 9am until 7pm.

The Heathrow Skills Taskforce is a group of leading figures steering how Heathrow can help children in schools today get the skills they need to work at an expanded Heathrow.

Romantics across the UK can rest assured that the UK’s supply of roses will be well stocked ahead of Valentine’s Day as Heathrow prepares for the annual spike in floral imports. An estimated 7,797,297 stems of fresh cut roses – around 570 tonnes – are expected to be imported to the UK via Heathrow this month. This is triple what is seen on an average month.

Red roses – the international symbol of love and passion – have been a Valentine’s staple since the 17th century. A single rose sent on Valentine’s day is traditionally seen as a declaration of true love, whilst a dozen roses is symbolic of complete love.

Kenyan roses account for 60% of those imported via Heathrow…

Though red roses are often seen a symbol of national pride in England, most of the flowers purchased for Valentine’s Day are likely to be from abroad. The vast majority (88%) of fresh cut flowers purchased in the UK actually hail from countries along the equator, where they can flower year-round. In 2015, Kenyan roses accounted for 60% of rose imports at Heathrow – with the remainder from Colombia, India, Tanzania, and Ecuador.

To avoid wilted flowers and disappointed valentines, rose distributors rely on the quick and reliable transport air freight provides. Nearly all – 93% – of fresh cut roses imported into the UK market travel via planes – and more than a third of these go through Heathrow.

Nick Platts, Heathrow Head of Cargo said, “While Heathrow’s cargo team may be best known for their daily handling of smoked salmon and engine materials, Valentine’s Day brings out the crew’s sensitive side as the warehouses are infused with the scent of red roses.”

Passengers flying through Heathrow in February may be surprised at the amount of fresh flowers that are under their very seats courtesy of the airport’s direct connections to places like Kenya, Colombia, and India.

– Heathrow Head of Cargo, Nick Platts

“As the country’s biggest port by value, Heathrow is by far the most common gateway for time-sensitive products being imported or exported. Over 30% of the UK’s exports by value go through Heathrow – more than the seaports in Southampton and Felixstowe combined. With expansion, Heathrow plans to double its current cargo capacity volume.”

A record breaking 5.74 million passengers and strong cargo growth have highlighted Heathrow’s January results, released today.

Heathrow has seen growth accelerate in recent months, suggesting economic resilience as the UK adapts to Brexit. December (+4.4%) and January (+4.2%) saw the fastest year-on-year passenger growth for those months in 6 years.

The rate of growth for passengers and cargo more than doubled in the second half of 2016 over the first half of the year. Furthermore, since the referendum vote, passenger flows outside the EU (+2.3%) have been growing more than twice as fast as growth with EU markets (+0.9%).

Alongside the 5.74 million passengers, over 124,000 metric tonnes of cargo travelled through Heathrow – the UK’s busiest port by value. This represented a 4.4% growth in cargo volume compared to January 2016.

Domestic air passenger charges cut by a third and expansion project reaches first delivery milestone

Heathrow fulfilled its pledge to families and businesses across Britain by cutting domestic charges by over a third – saving over £500m in airport charges. The discount is a key part of Heathrow’s plan to encourage growth outside London by making it cheaper to travel beyond the capital.

Airlines are already responding to the new discounted charges with Flybe launching at Heathrow with routes to Aberdeen and Edinburgh from March.

Heathrow’s expansion programme passed its first delivery milestone on schedule as the Government published its draft National Policy Statement (‘NPS’) on a third runway at the UK’s hub. A consultation on the draft NPS is now underway (read more about the Consultation here).

Heathrow CEO John Holland-Kaye said, “With record passenger numbers and cargo growth in January, Heathrow continues to serve the UK.

“We are getting on with our expansion programme, so that we can create the new routes that will deliver the Prime Minister’s vision of a global Britain, as quickly as possible.” – Heathrow CEO, John Holland-Kaye

“The launch of the Government’s National Policy Statement consultation is a key milestone and we look forward to working with our local communities, airlines and the Government to ensure Heathrow expansion is affordable, sustainable and benefits all of Britain.”

Consumer goods business expert Jeff Halliwell has today been announced as chair of a new Consumer Challenge Board to be set up by the Civil Aviation Authority, which will ensure Heathrow’s business plans reflect consumer interests.

The following is a release issued by the CAA today.

The UK Civil Aviation Authority (CAA), Heathrow Airport Ltd, and the Heathrow airline community are pleased to confirm the appointment of Jeff Halliwell as the chair of the Consumer Challenge Board (CCB), a new independent body that will challenge and scrutinise Heathrow Airport Limited (HAL) to ensure its business plans reflect the interests of consumers.

The CCB will have a particular focus on scrutinising Heathrow’s plans for the next review of the charges airlines pay for using the airport (the H7 review). These charges are regulated by the CAA as Heathrow is deemed to have substantial market power. The current “price control” regime at Heathrow runs until the end of 2019 and the CAA has recently started the review process towards establishing the charges that will be in place for 2020 onwards.

The CCB will scrutinise Heathrow’s plans as part of the process. It will advise on the effectiveness of the airport’s engagement with consumers and whether their needs are sufficiently reflected in the airport’s business plans and operations.

Jeff Halliwell was appointed as the CCB chair by a panel comprising the CAA, Heathrow Airport and the Heathrow airline community. He is currently the chair of Transport Focus*, Airport Co-ordination Limited (ACL) and Anglian Water’s Consumer Challenge Group. Mr Halliwell will lead selection of additional members to join the CCB in the coming months.

Heathrow welcomes independent challenge to airport’s consumer engagement

Andrew Macmillan, Chief Strategy Officer at Heathrow Airport, welcoming the announcement, said, “The passenger is at the heart of everything we do at Heathrow. As Britain’s front door, it’s our job to make sure they have a great experience when travelling through Heathrow. That’s why we’re delighted that Jeff Halliwell has been appointed to chair this new and innovative Consumer Challenge Board – the first for a UK airport.

Heathrow Airport, Terminal 4, airside, El Al first day of operations at Terminal 4, 25 April 2015.

“Jeff and his team will independently challenge Heathrow’s consumer engagement, and we look forward to working with them to ensure that Heathrow develops plans that will exceed the expectations of passengers and airlines alike in the years ahead.” – Heathrow Chief Strategy Officer, Andrew Macmillan

Richard Moriarty, Director of Consumers and Markets at the CAA, said: “We regulate airport charges at Heathrow to protect consumers and make sure they get a fair deal and good service when flying. It is therefore vital that the airport understands the needs of consumers and reflects those needs in its business plan for the coming years.“

“The CCB will play a crucial role in making this happen – providing regular independent advice and challenge to Heathrow so the consumer’s voice is heard. Jeff brings a wealth of consumer-focused experience to the role of chair and we look forward to working closely with him and his CCB colleagues.” – Director of CAA Consumers and Markets, Richard Moriarty

Airlines welcome new Consumer board

Simon Arthur, Managing Director of the Heathrow Airline Operators Committee, said, “The airline community welcomes the appointment of Jeff Halliwell as the chair of the CCB. We look forward to working with him and Heathrow Airport in the process of the CCB ensuring that Heathrow engages with our passengers, and develops its business plans to meet the needs of the many passengers who travel on our services in and out of Heathrow.”

An architect’s vision of expansion at Heathrow. Source: Grimshaw Architects.

While the CCB’s main focus will be reviewing plans for the charging regime for 2020 onwards, it may also consider related consumer input to plans for the development of Heathrow’s third runway.

Further information on the CCB and the CAA’s charges review process for Heathrow is available on the CAA website. Information and advice produced by the CCB will be available there in due course.

Notes to editor:

1. The Civil Aviation Authority (CAA) is the UK’s specialist aviation regulator. Its regulatory activities range from making sure that the aviation industry meets the highest technical and operational safety standards to preventing holidaymakers from being stranded abroad or losing money because of tour operator insolvency.

2. *Transport Focus represents train passengers in Britain and bus, coach and tram passengers in England (outside of London) as well as all those who use motorways and major A-roads – known as the Strategic Road Network (SRN) – in England.

With the 2017 Heathrow Jobs and Careers Fair just around the corner, we’re taking a look at some of the career success stories at the airport. There’s a wide range of roles available at the airport – from Customer Service, to Engineering Apprenticeships, airline roles and more. Nyomi is one of the great success stories to have come through the Heathrow Academy in the last 10 years.

When London-born Nyomi left school at 16, she wasn’t sure what the future held until a local youth group put her in touch with the Heathrow Academy.

“I’ve always been a practical hands-on type of person and school just wasn’t for me,” explains Nyomi.

“The Academy helped me realise that I still had a lot to offer, and with their help I was able to find a job as a Sales Assistant in World Duty Free.”

Whilst in this role, Nyomi enrolled on the Retail Skills Apprenticeship Level 2 but this would turn out to be a challenging journey to navigate.

“I learnt that when things in life aren’t going well, it’s easy to give up but I carried on”

In 2014 due to personal circumstances Nyomi began to find it hard to commit to the Apprenticeship. It was during this difficult time that Nyomi was able to lean on Vocational Assessor, Funke and Mentor, Jo.

“They encouraged me to focus on the positives and helped me believe in myself again. I learnt that when things in life aren’t going well, it’s easy to give up but I carried on and I’m really proud of myself for that.”

Nyomi achieved her Level 2 Apprenticeship in Retail Skills and has just completed her Level 3 Apprenticeship in the same subject. At the Heathrow ACademy Graduation and Awards Ceremony in 2015, she received an additional Learners Recognition Award for her hard work and commitment, and at the same ceremony was also recognised as an Apprenticeship Ambassador for supporting other people on their learning journeys.

Nyomi has been with World Duty Free for eight years and is a Sales & Service Specialist.

Interest in a career at Heathrow? Why not visit the 2017 Heathrow Jobs and Careers Fair on February 9 at the Sofitel, Terminal 5. Click here to find out more.

What are the Top 10 trade partner prospects for the UK moving forward? The Westminster Policy Institute has today released its 2017 Trade Prospects Index, in conjunction with Heathrow, which outlines strategic opportunities for the UK.

The Index ranks the Top 10 nations in terms of value that the UK could look to trade more with moving forward. Facts considered in their analysis include current trade, likely benefits, feasability, number of connections and perhaps most importantly – those where trade deals are more likely to be struck quickly.

The Top 10 nations are…

Each of the nations in the Top 10 have different strengths and weaknesses. From 10 to 1, the nations are:

  • Canada
  • Singapore
  • Japan
  • India
  • UAE
  • Australia
  • China
  • Brazil
  • USA
  • South Korea

“For the past 150 years Britain has been a beacon for free trade”

Heathrow CEO John Holland-Kaye describes the situation facing Britain in his foreward in the Index:”For the past 150 years Birtian has been a beacon for free trade. The ability to export food, cotton, coal and iron to all corners of the world helped Britain become the powerhouse economy of the world in the mid-19th century. In 2017, Britain can boast of world-leading, advanced manufacturing companies in sectors such as aerospace and defence. The UK is also the second biggest exporter of services in the world. We should all rightly be proud of Britain’s history as a great, global trading nation.”

“Today, however, Britain finds itself at a cross-roads. Over the coming months and years, the country must grasp the opportunities that leaving the European Union presents. Striking trade deals with both friends in Europe and with countries across the world will form the cornerstone of future UK prosperity.” – Heathrow CEO, John Holland-Kaye

“Agreeing new deals will not be simple. There are a number of complex factors – diplomatic, economic and political – which will need to be addressed to avoid the cliff-edge of trade uncertainty for British businesses. It is an opportunity to forge new frameworks for free trade deals whilst being vital to priorities deals which are not only achievable in a relatively short period of time, but which also deliver the most value to the UK economy. That is why we at Heathrow are delighted to be supporting WPI Economics’ Trade Prospects Index.”

Download the full report, here.

Heathrow

By Heathrow

Published 1st February 2017