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UK/CHINA. China Southern Airlines’ new route between Guangzhou Baiyun International and London Heathrow airports offers important retail and trade benefits, according to Heathrow Commercial Director John Holland-Kaye.
Speaking to The Moodie Report from Heathrow just after he welcomed the inaugural flight on 6 June, Holland-Kaye said: “It’s a terrific opportunity. Both we and our retailers have worked hard to tailor the offer that we have to the Chinese.” [The full interview with Holland-Kaye appears in this week’s edition of The Moodie Report e-Zine, out tomorrow].
The airline’s debut landing marked the UK’s first Guangzhou-London route. It will be served initially by three flights a week from Heathrow Terminal 4 (rising on an initially interim basis to daily flights this winter) and BAA said it would have a significant impact on trade between the two countries.
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London Heathrow Airport Commercial Director John Holland-Kaye extends a very English welcome to China Southern Airlines Executive Vice President He Zong Kai at Terminal 4 last week |
Holland-Kaye said that Heathrow, supported by its lead retailers such as World Duty Free, is working hard to help Chinese travellers in terms of general airport wayfinding, retail signage and Chinese speaking-staff. “Signage can help but it really needs people as well,” he said. We’ve done a lot on the language side with labelling and signage but also by putting Mandarin and Cantonese speakers in the terminal. That makes a huge difference.”
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“The centre of gravity in the world economy is shifting and Britain should be forging new links with economies like China. Instead a lack of hub airport capacity is causing us to fall further behind the rest of Europe.“ |
Colin Matthews Chief Executive BAA |
BAA reported that the deal has taken eight years to come to fruition due to Heathrow operating at 99.2% of its permitted capacity. The company said: “China Southern has had to wait for suitable take-off and landing slots to become available before it has been able to add the new route. The UK has missed out on trade, jobs and economic growth because of the government’s cap on flights at the UK’s only hub.
“In the meantime the airline has flown to Paris, giving French companies an eight-year head start in building new trade links with China. Even now, Paris will have four times as many flights to Guangzhou than the UK.”
BAA noted that European competitors will serve a further seven additional routes to mainland China this year. Paris Charles de Gaulle, Frankfurt International and Amsterdam Schiphol airports boast direct flights to Chengdu, Hangzhou, Wuhan, Xiamen, Nanjing, Shenyang and Qingdao, in addition to Guangzhou, Beijing and Shanghai. Meanwhile Heathrow only offers flights to the latter three cities.
Other airlines from major emerging economies would like to add new routes at Heathrow, but are unable to do so because of a lack of take-off and landing slots, BAA claimed. It cited a report by Frontier Economics which found that there were twenty-one emerging market destinations with daily flights from continental European hubs but not from Heathrow. This lack of connectivity is estimated to be costing the UK economy £1.2bn a year in lost trade.
BAA Chief Executive Officer Colin Matthews said: “It is great news for the UK that China Southern is opening up a new route between Heathrow and Guangzhou. We are delighted that China Southern has chosen Heathrow, and we would like to welcome more flights from China Southern and other airlines that could bring jobs and growth to the UK. The centre of gravity in the world economy is shifting and Britain should be forging new links with economies like China. Instead a lack of hub airport capacity is causing us to fall further behind the rest of Europe.”
China Southern Air Holding Company President and of China Southern Airlines Company Chairman Si Xianmin said: “The launch of the Guangzhou-London air service marks a bold new step forward in China Southern’s aviation development in the London marketplace. This new air service will play an important role in China Southern’s “˜Canton Route’ strategy and will serve as an air bridge that connects Europe with China and Australasia.”
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