Philip Hammond: I want a new regime that ends the Heathrow hassle

Charter for change: Philip Hammond plans a new system of rewards for the airport operator
10 April 2012
WEST END FINAL

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The new Transport Secretary today declared war on the "Heathrow hassle" suffered by millions of frustrated air travellers.

In his first major interview, Philip Hammond revealed radical plans to eradicate the notorious queues, lost luggage and delays at Britain's premier airport. They will end an outdated regulatory regime dating back to the Seventies, blamed by the minister for holding the industry back by penalising improvements.

In future there will be cash rewards for operators who raise standards on a range of measures, from queue lengths at security to car parking. "Historically, Heathrow has been something of a joke, outweighed by its excellent connections," said Mr Hammond.

"We have to aspire to having an airport at Heathrow with two runways which is a world-class airport. It's a big challenge."

In other comments, Mr Hammond revealed:

* Variable speed limits currently used on motorways will be considered for trunk roads and dual carriageways. They may allow faster speeds than current fixed limits on some roads at night when traffic is light.

* Tolls and private finance will be considered for all new road schemes because of the shortage of money for investment. However, Mr Hammond is ruling out "pay as you drive" for existing roads.

* The budget to repair the millions of potholes left in Britain's roads by the cold winter is safe from Treasury cuts, including the full £3.8 million promised to mend London's damaged streets.

Former Treasury spokesman Mr Hammond also confirmed that London's Crossrail scheme is safe, but he warned that savings must be sought on every mile of the east-west line.

The news that the new government is determined to help Heathrow give a better service to travellers will be welcomed by business leaders, who say the airport is a terrible advertisement for London to tycoons arriving from around the world.

Mr Hammond expects airport operator BAA to welcome the changes, too, because they will bring in proper rewards for the sort of improvements that it has already invested in at the new Terminal 5 and revamped T2.

"It means we pay the operator more when he makes the queues shorter," said Mr Hammond.

"At the moment it does not work like that. The airport economic regulation model . . . is hopelessly out of date. It is mired in Seventies thinking."

Targets and standards will be set by a new regulatory system that was signposted in Tuesday's Queen's Speech.

"Are you stuck in the tunnel for hours? Are you dropped off at the right place? Is there a throng that stops you getting to the check-in desk?

"Can you get through security quickly? How far do you have to walk to the terminal? How often do you have to get on the bus? It's all those kind of passenger experiences," said Mr Hammond.

"What we want is a regime that says to BAA: Part of the money you get, part of your profitability, will depend on the passengers' experience through the airport'."

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