Securing the future of aviation - speech by Transport Secretary Heidi Alexander on March 18

Secretary of State for Transport outlines next steps for modernising the aviation sector at the AirportsUK annual dinner.

Good evening, everyone, and thank you Karen for inviting me tonight (18 March 2025). 

I know better than to stand between people and their dinner, so rest assured I will keep my remarks brief.

And despite this being my second aviation speech in less than a month, you'll be glad to know I haven't run out of things to say. I haven't even exhausted my best material about feedstocks and revenue certainty mechanisms – so brace yourselves.

But, seriously, it really is a pleasure to be here. I hope you feel, as I do, that these are exciting times for your sector, with much to focus on in 2025 and beyond.

But let me start with the remarkable year you've just had. Bristol exceeding 10 million annual passengers for the first time. Or the busiest year on record for Manchester and Stansted. All told, passenger levels at UK airports were 7% higher in 2024 than the previous year.

I know none of this happens by accident. Much is down to the changes you've made to the passenger experience. The technology you're implementing. And the investments you're making to increase capacity.

Looking longer term, it's clear this is a trend, not an unusual year. In fact, everything points to a record-breaking 2025 – and it's easy to see why.

The world has never been more interconnected. The desire for travel never stronger. Global forecasts show a near doubling of passengers and cargo in the next 20 years  

So the demand is there. It's growing. And if we don't seize it, we not only risk being outpaced by European competitors, but we will be on the wrong side of public aspirations.

Obviously, I'm preaching to the converted here. But it is brilliant that, right across our airports, we're seeing palpable optimism for the future.  

Heathrow's £2.3 billion investment to overhaul its infrastructure. The best ever financial results for Newcastle, ahead of a £17 million investment to resurface its runway and taxiway. And European Cargo's decision to choose Cardiff as its second UK base – with regular flights to China.

But these impacts aren't just felt within the industry, but outside too. Take Leeds Bradford. Where plans to upgrade its terminal will see a £940 million boost to the local economy, creating thousands of new jobs.

These investments reveal airports not only as hubs for travel, but hubs for growth – driving jobs, creating opportunity and facilitating the trade which underpins our way of life.

Now more than ever, you need a government that recognises this. That's why we see airports as a crucial pillar of our Plan for Change. And it's why we've  acted, and acted quickly, across 3 areas – starting with expansion. 

It's no secret that long ignored capacity issues in the south-east, has meant some of our major airports are now bursting at the seams.

And yet – when it came to expansion – too many people stuck their heads in the sand. It left the industry in a perpetual holding pattern, with decisions circling around Whitehall for years, waiting for a clear signal. 

Earlier this year, the Chancellor gave that signal – taking the brakes off growth by welcoming plans for a third runway at Heathrow. Britain's first full-length runway in nearly 25 years. 

Now, my job has to be balancing the economic benefits of expansion with our social and environmental commitments.

That underpinned my announcement a few weeks ago on Gatwick, where I set a clear path for expansion if certain conditions are met.

And, of course, I'll be making an announcement on Luton very shortly.

But while I cannot go into any more details tonight – let me say this. I will never accept the false trade off that pits growing aviation against protecting our environment. I honestly believe we can, and must, do both. And how we do that is already being answered – by many in this room.

Firstly, we cannot hope for quieter, cleaner and greener flights if our most critical piece of infrastructure is stuck in the past.

Modernising our airspace will create more efficient flight paths, ensure quicker climbs and smoother descents, and help meet our commitments to noise and emission reduction.  

So, I was grateful for the views you shared on the UK Airspace Design Service (UKADS) – the body that will drive this work. And you'll have heard that the Chancellor has now given the green light. Not just for a new UKADS but also to reviewing key processes behind modernising our airspace, and to an Airspace Design Support Fund to deliver faster progress.

We are now working with NATS on the shared goal that UKADS will be up and running this year. 

Of course, to make progress on this critical reform agenda, we will rely heavily on your support and collaboration. Without that, we cannot maintain the pace we need. So I'm pleased that so many of you are already working constructively with airlines and local communities on your proposals.

Alongside this, we must ramp up work on reducing emissions. Green flight isn't only essential for the industry, it's existential.

Of course, sustainable aviation fuels will play a major role. It's why we've signed the SAF Mandate into law.

It's why we've now launched a consultation into a price guarantee for UK SAFproducers and investors. And it's why we've backed homegrown SAF projects to the tune of £63 million via the Advanced Fuel Fund.  

But SAF isn't the only piece to this puzzle. Lighter wings and more efficient engines will play their part. As will new forms of zero-emission aircraft and supporting infrastructure.

Many of you have also set net zero targets for your airport operations in advance of 2040. And I'm thrilled to see you following through with solar panels helping power Birmingham and Newcastle airports. And hydrogen power being trialled on the ground at Exeter and Bristol. 

All this matters. Expansion. Modernisation. Decarbonisation. These 3 areas will secure this industry's future. 

It's why the government has wasted little time in:

• consulting on reforms
• getting legislation on the books
• making the crucial decisions on expansion and growth

And doing in 8 months, what previously has taken years.

Of course, challenges remain – I'm not blind to that. But throughout, I promise I will be working with you to remove the barriers holding you back.  

Thank you.