High speed, but not to Heathrow or Atol reform (Taylor on Travel)

High speed, but not to Heathrow or Atol reform

Philip Hammond's appearance before the transport select committee on Monday told us little we did not already know.

The transport secretary reaffirmed the government's commitment to move domestic traffic from air to rail, while signalling passengers would have to wait more than 10 years to see the first benefits of high-speed trains.

He dealt a fresh blow to Heathrow by indicating airlines could not expect a high-speed line to run direct to the airport, while also ruling out mixed-mode use of Heathrow's runways - which would have increased traffic by allowing aircraft to take off and land on the same one.

The large regional airports hoping to profit at Heathrow's expense fared no better, with Hammond telling MPs: "It is not obvious the UK can support more than one international hub airport."

So there was no unexpected reverse in government policy on air travel.

Most of the transport secretary's two-hour appearance was taken up by questions about rail travel. His remarks were, therefore, of most interest to the outbound sector for what he did not say.

Hammond referred questions on air passenger duty to the Treasury, where the industry can expect short shrift, and he spoke of the problems of volcanic ash without mentioning airline demands for compensation. The industry can expect little joy on either count.

He did mention Atol reform, but gave no indication the department had decided how to proceed or even when it would decide, and though the transport secretary spoke of the need for clarity about who pays to repatriate passengers when a travel company fails, he omitted to mention refunds on bookings.

Indeed, his comments on Atol reform - from a politician noted for attention to detail - generally lacked precision. Hammond described including flight-only sales in a reformed scheme as "an option" - which it is. But he did not make clear whether he meant charter flight-only sales - which are Atol-covered but could be removed from protection - or all flights by all airlines, a move previously ruled out. He also referred to Goldtrail Travel customers as "covered by bonding", which they were not.

Fortunately, Hammond does not need to be fully briefed on the Atol proposals because transport minister Theresa Villiers will make the decision . . .

Posted by Ian Taylor on July 30, 2010 12:30 PM | Permalink