Operation of Air Services (Amendment) (EU Exit) Regulations 2020

Baroness McIntosh of Pickering Excerpts

Tuesday 26th January 2021 Grand Committee

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, I thank my noble friend the Minister for bringing forward these regulations today—they go to the heart of the sustainability and resilience of the industry. At its height, the aviation sector enjoyed a turnover of over £60 billion, contributed over £22 billion a year to the UK economy and employed almost 1 million people either directly or indirectly. My thoughts are with all those who have been involved and who may have lost their jobs in the airline sector and the aviation industry at this time.

I particularly welcome the fact that this statutory instrument allows air carriers to retain licences in the event of passenger numbers falling, subject to the conditions that my noble friend set out, and allows, in the circumstances of a ground handler ceasing to trade before the end of the contract, airports to choose a new provider directly for a limited period to enable them to continue without a tender process at that time.

My noble friend set out the conditions which have to be met in the event of an operating carrier experiencing financial difficulties. If the airline operator cannot meet those criteria at this time and until December this year, what happens to the licences which are released and what procedure is to be followed in those circumstances? It would be very helpful for us and those affected to know.

I also echo the thanks given by the noble Lord, Lord Bilimoria, for the support enjoyed by the airline sector and other industries. But does my noble friend agree that airlines need further economic support at this time, over and above the support they have already enjoyed? Of course, most of the loans have to be paid back, and it may be some time before we enjoy the level of activity that we saw between 2016 and 2018 to enable the airlines to repay those loans. Will my noble friend look at my request to end the current air passenger duty anomaly, which is effectively subjecting UK domestic flights to double taxation?

Those are my two specific questions, in addition to what happens to the licences: what further support might be extended, and can the vexed question of air passenger duty and double jeopardy be tackled?