Demand for Monarch's Gatwick slots supports expansion case, boss claims

Appetite from rival airlines for defunct carrier Monarch’s slots has “shone a light” on the pent-up demand from airlines to run flights out of Gatwick, the airport’s boss has claimed.

KPMG, administrators for the fallen carrier, won the right to sell take-off and landing slots at Gatwick and Luton airports in the Court of Appeal this week. Several airlines - including easyJet and British Airways owner IAG - are understood to be considering bids for the slots which are estimated to be worth roughly £60m.

Gatwick chief executive Stewart Wingate said he had been able to identify the level of demand for the assets during the legal battle.

“We have seen very clearly that there is significant pent-up demand for European and long-haul routes,” he said.

“That gives us even more confidence in our case for expansion.”

Although the Airports Commission backed the third runway scheme at Heathrow, Mr Wingate said he would be continuing to push for his “fully privately-funded” second runway at Gatwick as part of the Government’s wider aviation strategy for the South East.

Mr Wingate said the Government’s latest figures suggested Gatwick would have 45m passengers by 2030 but that the airport passed this milestone in September and was confident of reaching 50m passengers in the next three to four years.

The chief executive also criticised the move by the Chancellor Philip Hammond to raise air passenger duty on premium economy, business and first class airplane seats.

“While we welcome the freeze on economy fares we would like to see more action,” he said.

“Our long-haul traffic grew by 12.4pc in the past year thanks partly to 22 new long-haul routes, which is more than any other European airport. But it is incredibly important if we are going to secure more routes that we are competitive at both ends of the cabin.”

Sales at the airport, the world’s busiest single runway site, rose 5.5pc to £469.7m for the six months to end-September leading to pre-tax profits of £140.7m, up more than a fifth.

The rise in turnover was helped by an 8.3pc increase in income from the shops and restaurants at the airport showing how important pre-flight passenger spending is becoming to airports.