72. Belfast International Airport (BIA) has 24 hour operational access, and provides air freight facilities for Northern Ireland. It is the third largest air freight facility in the United Kingdom, handling around 50,000 tonnes per annum.[148] The CBI highlighted the need for Northern Ireland to have access to "competitively priced air freight services" by exploiting the world-wide express operator market,[149] and we recognise that BIA has scope within its boundaries to expand its dedicated air freight infrastructure and facilities, if required.

73. Heathrow "is the major global cargo hub" and we were told that Northern Ireland "lost significant capacity for belly freight to Heathrow when British Airways ceased its Belfast International to Heathrow route in 2001.[150] The CBI pointed out that "the majority of air freight leaves Northern Ireland on the first leg of its journey by road and sea", and highlighted the "need to look at ways of shortening that supply chain" calling for Northern Ireland to use "air freight in a more cost-effective, efficient and innovative way".[151] Belfast International Airport argued that the development of good road infrastructure in Northern Ireland was critically important for air transport development, and that it "is absolutely critical from a freight perspective".[152]

74. Significant manufacturing capacity has moved from Northern Ireland to Asian countries over recent years, and the CBI stressed the need for new air routes to respond to this development and to provide manufacturers with easy access to and from Asia.[153] The CBI made the point that, linked to this, Northern Ireland is bringing "products in from the Asian market, … some …. for added value services before it goes on to other markets" and this also creates a demand for air services.[154] A joint study by the CBI and BIA into air freight services for Northern Ireland is taking place,[155] and the CBI suggested that, although final conclusions have not been reached, it "may well" conclude that a joint passenger and freight route could be developed to serve the Asian market.[156]

75. The CBI/BIA study found that, "with the exception of the electronics sector, the majority of businesses currently use air freight only in emergency", but that "opportunities exist for collaboration across sectors to achieve the critical mass necessary to develop 'low cost' air freight services to key geographic locations".[157] We recognise the growing importance of air freight services to enable the business sector in Northern Ireland to compete in the global market, and we commend the current study by the CBI and Belfast International Airport.

149   Ibid Back

150   Q 339 Back

151   Ibid Back

152   Q 404 Back

153   Q 327 Back

154   Q 328 Back

155   Air Freight - A last resort or potential competitive advantage, Research Report, CBI & Belfast International Airport, October 2004 Back

156   Q 328 Back

157   Air Freight - A last resort or potential competitive advantage, Research Report, CBI & Belfast International Airport, October 2004, page 15 Back