How Will the New UK Government Change the Aviation Industry?

13.07.2024 - 13:51 / skift.com

It’s the morning after a resounding Labour victory in the United Kingdom. As Sir Keir Starmer’s center-left party prepares to ascend to 10 Downing Street, attention turns from campaigning to policy-making.

So what does this seismic change mean for the aviation industry in the U.K. and beyond? takes a closer look at the party’s manifesto and its comments over recent years, to see what could be in store for airlines and other stakeholders. 

Aviation is mentioned in Labour’s manifesto – a written declaration of a party’s policy and aims. Within the 136-page document, it notes two specific areas focused on the industry’s long-term future. The first is the promotion of sustainable aviation fuels (SAF) and the second encourages airspace modernization.

SAF has been a hot topic in the industry for years, and its prominence is only growing. Late last year, Mike Kane, then the opposition Aviation Minister, highlighted that meeting the 10% SAF target is a legal requirement of the Paris Agreement on climate change, and one his party will be meeting.

Notably, in April 2024, the outgoing Conservative government introduced a new mandate, including a requirement for 2% SAF usage by 2025, increasing annually to 10% by 2030. 

It is currently unclear if the new Labour administration plans to add further incentives or deterrents to the existing mandate for fuel suppliers. The existing path remains largely compliant with the Paris deal. If executed as planned, it could lead to a tangible reduction in emissions, albeit with buyout clauses in case targets are not met.

However, with a government-backed revenue certainty mechanism still in the works for 2026, Labour has a chance to bring big investment to the sector, an issue the Conservatives deferred before the general election.

Another long-standing priority for U.K. aviation has been modernizing air routes. While the aircraft we fly today are often state-of-the-art, many of the air corridors they follow were first set up in the 1950s. 

Put simply, the nation’s airspace – along with many of its regional counterparts – is in dire need of change. NATS, the organization that provides air traffic control services at the country’s biggest airports and manages all U.K. upper airspace, estimates by 2030, one in every three flights from the U.K. will be delayed by over 30 minutes. It also predicts that the average length of delay would rise from nine minutes in 2015 to 26 minutes by the end of the decade. 

Labour’s modernization plan brings in stakeholders from across the industry, including NATS and airlines. Benefits should extend to non-flyers too, with a reduction in noise pollution due to fewer low-altitude routes, and lower emissions thanks to more efficient air routes. 

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