Air Traffic Management and Unmanned Aircraft Bill [HL]

Lord Bruce of Bennachie Excerpts

Report stage & Report stage (Hansard) & Report stage (Hansard): House of Lords
Thursday 21st January 2021 Lords Chamber

[Baroness Vere of Norbiton (Con)]

My Lords, Amendments 12A, 18A, 18B and 44 are a series of government amendments to provide temporary powers for the alleviation of airport slot usage rules. This will amend retained EU regulation 95/93, which governs the allocation of UK airport slots.

Prior to the Covid-19 pandemic, the 80:20 rule—or the so-called use it or lose it rule—encouraged the efficient use of scarce airport capacity, while allowing airlines a degree of flexibility in their operations. There are eight slot-constrained airports in the UK to which the 80:20 rule applies: Heathrow, Gatwick, London City, Luton, Stansted, Bristol, Birmingham and Manchester. The 80:20 rule mandates that, provided an airline has used its airport capacity at least 80% of the time in the preceding scheduling period—either winter or summer—it is entitled to those slots in the upcoming equivalent period.

Due to the unprecedented impact of the Covid-19 pandemic, in March last year the EU Commission took the decision to waive the 80:20 rule. Airport co-ordinators were instructed, when determining slot allocations for the upcoming summer season, to consider slots as having been operated regardless of whether they were actually used. This waiver covered the summer 2020 season and was subsequently extended to cover winter 2020-21. The UK supported the EU’s position.

Without alleviation, airlines may have incurred significant financial costs by operating flights at low load factors merely to retain their slots. Alleviation has helped to protect future connectivity and airline finances and reduced the risk of ghost flights being run to retain slots.

We anticipate that the effects of the Covid-19 pandemic on the aviation industry will continue for some time. Passenger demand is not predicted to return to 2019 levels until at least 2024-25. After we exited the UK-EU transition period on 31 December, regulation 95/93 was retained in UK law. However, when it was retained, the powers of the Commission to extend the period of alleviation from the 80:20 rule—which are being transferred to the Secretary of State—were expressly limited to 2 April 2021. As we expect disruption to air travel to continue for several years, it is therefore imperative that the UK has the necessary powers at its disposal to provide alleviation beyond the summer 2021 season should the evidence suggest that it is warranted.

Amendment 12A inserts a new clause after Clause 11 in Part 2 of the Bill. The new clause would insert a new Article 10aa into retained Council Regulation (EEC) No 95/93 of 18 January 1993 on common rules for the allocation of slots at United Kingdom airports. This would provide the Secretary of State with a power, exercisable until 24 August 2024 and not in respect of a scheduling period after winter 2024-25, to provide air carriers with alleviation from the requirement to operate airport slots allocated to them 80% of the time in order to retain the slots for the next equivalent scheduling period.

To allow for flexibility, this amendment also includes powers to modify the 80% requirement relating to slots usage. This will be an alternative to applying a full alleviation of the 80:20 rule for a specified scheduling period or season. This recognises that there could be alternative ratios, not 80:20, which could be applied to ensure the efficient use of slots. It will also allow the Secretary of State to apply conditions to an alleviation of the 80:20 rule, such as by setting a deadline for the return of slots not intended for operation, or that a waiver will not apply to a series of slots of an airline that, for example, ceases to operate at an airport.

The amendment also allows the Government to make other changes to the operation of the rules relating to the allocation of slots under this regulation for the duration of the relevant scheduling period. For example, the Government could change co-ordination parameters to reflect partial closures of airports, adopt temporary rules for the most efficient allocation of unused slots, and give the slot co-ordinator enforcement powers—for example, where unused slots are not returned with sufficient time to enable them to be effectively reallocated to other carriers. Having the powers to vary the 80:20 ratio and apply conditions to be in place on application of the rule will allow appropriate measures to support the sector’s recovery as passenger demand returns.

The use of this power will require secondary legislation, subject to the affirmative procedure, for any applicable scheduling period in which evidence supports the conclusion that relaxation of the 80:20 rule is appropriate. The nature and extent of any relaxation will be subject to targeted consultation and, of course, there will be a debate in both Houses.

This approach will allow us to use current data and evidence, as well as to consult stakeholders, to make judgments on whether alleviations are required for each period and, if so, to what extent. We will also assess other institutions’ analysis and recommendations on slots usage rules for future seasons, including the Worldwide Airport Slot Board, and proposals from other areas, such as the European Union and the United States.

Amendment 18A is a consequential amendment to Clause 19 to reflect that the new clause on airport slot allocation extends to England, Scotland and Wales but not Northern Ireland, where aerodromes are a matter reserved for the devolved Assembly. As noted, however, all slot co-ordinated airports in the United Kingdom are currently in England.

Amendment 18B is a consequential amendment to Clause 20 and provides for the new clause to come into force immediately when the Bill is passed and becomes an Act. This amendment ensures that regulations could be made under the new Clause 11A, relating to airport slot allocation, following Royal Assent, so that they are ready to come into force as soon as appropriate thereafter.

Amendment 44 amends the long title of the Bill to include reference to airport slot allocation. I beg to move.

[Lord Bruce of Bennachie (LD) [V]]

My Lords, I thank the Minister for her introduction to these amendments and her explanation of the background. I should explain to the House that for most of my time as a Member of the other House I represented Aberdeen Airport; I say “most of my time” not because the airport relocated, but because my constituency boundaries changed. As a result of that, and of the fact that I commuted weekly by air to Parliament for decades—until lockdown last March, I continued to do so—I have taken an interest in aviation. Until lockdown I was also a frequent traveller around Europe and the rest of the world, and have experience of a variety of airlines and airports, large and small.

The allocation of airline landing slots is controversial, in terms of competition and commercial opportunity, as well as of access from feeder airports to the co-ordinated airports—a particular concern of mine. I completely understand the reason for the current waiver of the 80:20 “use it or lose it” rule, in the present climate. As the Minister said, we are following the same measures as the EU. Since she touched on this, does she foresee any circumstances in which the UK would, or should, take a different approach—for example, in how the proportions are reallocated? What would be the criteria or the conditions for that to happen?

I understand the complexity of managing slots, especially when airlines have seen their incomes decimated, and the fact that, as the Minister said, the predictions are for a long, slow period of recovery. At the same time, airport managers understandably wish to maximise traffic through their airports and resent it if airlines retain slots that they do not use, especially if other airlines are seeking additional slots with the intention of building a service. Given the need to maintain good relations with its airline clients, an airport may be unwilling to express its frustration. Clear, legally enforceable rules would be helpful, so does the Minister think that legal enforceability of the slots rules should be considered?

Access to services to and from London airports is especially critical for Scottish and Northern Ireland airports, both for access to London and for connections to Europe and the rest of the world. Of course services are driven by demand and commercial reality, but it is acknowledged that wider economic consideration for linkages is also important. That was demonstrated by the Government’s intervention on the collapse of Flybe, in relation to certain regional services.

Leaving aside the case for subsidies—I am not engaging with that in this debate, even for lifeline services, as it seems an important but separate issue—there has been a belief among many airport users that feeder routes to London may be profitable, but that the slots could be more profitably used for long-haul routes. The feeder routes were not necessarily uncommercial, but perhaps less profitable. Control and possible hoarding of slots by the larger airlines restricts competition and makes it difficult for other airlines to develop alternative services.

At the height of oil and gas activity in Aberdeen, we had daily flights to not only Heathrow but Gatwick, London City, Luton and Stansted; more recently Loganair trialled a service to Southend, but that did not last long. British Airways pulled out of providing a service to Gatwick and London City years ago. I found that hard to understand, as many of the airline’s holiday flights operate from Gatwick and transfers from Heathrow to Gatwick are not relaxing. EasyJet pulled the last Gatwick link, and Flybe and Eastern ended the City flights. Flybe and Virgin both attempted to offer a Heathrow service but neither became established, although it was Flybe’s demise that ended its Heathrow link.

As of this week, because of the pandemic, we have one or two return flights a day to Heathrow, compared with the six or seven we would expect in normal times. EasyJet will start providing daily flights to Luton from March, and—hallelujah—to Gatwick from May, Covid permitting. No doubt users of Belfast Airport will have a similar story, while Inverness has had to fight to retain links to London. Indeed, the reduction in services to London has seen business switch to Amsterdam and Paris, to which we have direct services, although those services, too, are currently limited.

As has been said, airlines’ recovery post-pandemic is likely to be slow but could also be ruthlessly competitive. Will the Government consider how the allocation of slots can be managed to ensure that it works in the best interests of all stakeholders, including the flying customers and feeder airports? Can airlines be prevented from hoarding routes they do not use, if that keeps out feeder routes or newcomers?

What steps can be taken to ensure that the allocation of slots takes into account the economic and social needs of remote communities, which are by definition more dependent on air links? Just for the record, the train journey from Aberdeen to London takes a minimum of seven hours, and at the moment we have only one direct service without changes; the others take longer. For people living in such areas, flying is not a luxury but an essential part of life.

Air Services (Competition) (Amendment) (EU Exit) Regulations 2019

Lord Bruce of Bennachie Excerpts

Tuesday 12th February 2019 Lords Chamber

[Lord Bruce of Bennachie (LD)]

My Lords, I also have some questions. One of them arises from the comment made earlier by the noble Lord, Lord Deben, which suggested that some of this is theoretical or even fanciful rather than real, since replacing “EU” with “UK” sounds like a very simple thing. But it is fundamental to the fact that over the years we have developed a UK aviation industry and an EU aviation industry with open skies and much more flexibility in the choice of airlines operating, which could all be about to come to an abrupt halt.

I have questions in relation to domestic issues as well as international ones if we pass this instrument. For example, on the issue of allocation of slots, clearly at the moment the EU can have some exercise, even on slots operating within the UK and between UK domestic airports. As someone who has flown regularly for over 30 years, using many of the UK’s airports internally and externally, and who has represented an airport, I have been very exercised by slots which come and go, which are offered and then not used and where actual sanctions against the airlines to maintain a service seem to be ineffective.

Let me slightly bore the House with two of my own experiences from the last two weeks. For the first time in the 30-odd years that I have been commuting from Aberdeen to London, I was unable to get a flight that would get me here on time for the sitting of the House, either this week or next week. This was because British Airways decided not to use its full slots, claiming there is not the demand, despite the fact that every flight is overbooked. Indeed, it is telling us two weeks ahead that there are flights which are no longer available, even for wait-listing, because they are overbooked two weeks in advance, yet it has reduced the slots with no sanctions. Does this regulation have any effect on whether or not that could be done? The Minister will tell me it is a matter for the Civil Aviation Authority. It may well be, but I hope the Government will recognise that it is a matter of public interest if people cannot get the flights they would reasonably expect.

On the issue of what will happen to UK airlines seeking to maintain flights to the EU after 29 March, we know that easyJet has already resolved that situation for itself by relocating its headquarters to Vienna. There is a serious possibility that British Airways may have to relocate its headquarters to Barcelona or Madrid, since the EU appears to be saying that it does not recognise the IAG as an EU company because its headquarters are within the UK. I see the Minister shaking her head. I would be interested to know whether she has any updated information as to whether BA can resolve this issue without having to relocate its headquarters out of the UK. It would be somewhat ironic if our flag carrier was headquartered in Madrid or Barcelona.

The other issue relates to when airlines merge. For example, at present we have limited competition between Aberdeen and London, operated by Flybe. Flybe has sold itself for £1 or £1 million—I cannot remember which, but it was a very small amount—although this is being disputed. The question we are left with is what guarantees there would be for those slots if Virgin and its partners took over Flybe. Would it come under UK law? Would there be any EU intervention—or would there have been—and how would it be enforced? So, although the Minister said that the competition regulation has never been applied within the EU, if the UK becomes a third country, could it not then be used by the EU as a discriminatory weapon against us if we are seeking reciprocal rights?

For example, the UK Government may well say that on 29 or 30 March all airlines will be free to continue operating into the UK on exactly the same terms as they do currently. We can do that, but is there any obligation on the EU to reciprocate? If there is not, does this mean that we will be offering free access to all our airports for continental airlines but UK-registered airlines will potentially be denied all access to theirs? Facing this kind of uncertainty is pretty catastrophic 45 days out from Brexit. So of course people are wondering whether they should book flights. I have rashly booked flights to the continent in May and August, mainly because if you do not book them in time they are not available—but they are subject to uncertainties that may or not be resolved.

The Minister needs to answer some basic questions. To what extent will we be in the same situation as we are now? To what extent will the ability to change the rules and regulations unilaterally be open to the UK? If we do it, what will be the implication for our relationship with the EU? Or are we simply saying that we are transferring the law by replacing “the EU” with “the UK” but have absolutely no comment to make on how the EU is going to operate, what sanctions or otherwise it may impose or what redress we may have. I may have read it wrongly, but this reads to me as an entirely unilateral operation by us, with no guarantees that the EU will reciprocate any of it.

[Lord Balfe (Con)]

My Lords, the Chamber is much emptier now than it was for the earlier SI. I am intrigued that we are replacing the air services competition regulations, which apparently have never been used, with an SI which we hope will never come into force. This is almost comedy stuff. The Explanatory Memorandum states that,

“this instrument makes the corrections needed for it to function as domestic UK law after Exit day”.

What is the position regarding the replacement? If negotiations on it are going on at the moment, presumably the Department for Transport is involved in them. I would be interested to hear where they have got to. Are they on the point of producing the replacement or is it some way down the line? If it is on the point of being replaced, do the Government envisage bringing forward another SI to reflect the new regulation? Or will this be the first instance when we are seriously at variance with Europe: in other words, when it adopts a new regulation but we are still working on an old one? This picks up the point I made earlier this afternoon when I asked about divergence between Community and UK law. It needs to be addressed.

One always learns things in these debates. I was fascinated to learn that my noble friend—and good friend—Lady McIntosh began her romantic life by talking about cabotage. I found something else to talk about when I first met my wife, but we do not need to go into that. Looking at the slot allocation regulations, the question that keeps coming to me is: why should any airline stay based in the United Kingdom at all? What advantages are we going to offer them? I can see the advantage in being in a union of 27 countries where there is a common base and common legislation, but what will be the advantage of being a UK airline? I can see none at all. Britain cannot do without airlines. We are not going to stop them flying here, but at the same time we have nothing to offer them that will be better, in any way, than what they will be getting from the EU. The Commission will no longer have a role in relation to airports.

According to the explanatory statement, article 9 says:

“Instead of any invitation to tender to operate a”,


public service obligation,

“route being open to Community air carriers only, this will be open to all air carriers with traffic rights to operate services within the UK”.

Is not the logical corollary that our rights to bid for public service obligation slots in the rest of Europe will be withdrawn? If we are going to open up and say that non-EU airlines can bid for these slots, surely the natural reaction would be to say that we are changing the whole basis of things. So this is not bringing EU law into UK law; it is bringing it in with one quite fundamental change, by opening it up to all air carriers with traffic rights to operate services within the UK. What is the thinking behind this? Why have we inserted this into a regulation that is supposed to bring EU law into line with our law, while making a big divergence by letting non EU-registered airlines bid for these slots? I would welcome the Minister’s observations on why this has been done.

Regional Airports

Lord Bruce of Bennachie Excerpts

Tuesday 15th July 2014 Westminster Hall

[Mike Kane]

Currently, flights from Manchester airport mainly go point to point. There is an argument for hub status, but I think that argument must be much further down the line than it is today.

Airport City Manchester will introduce a new concept to the UK, delivering up to 5 million square feet of new highly connected business space over the next 10 years. It has already attracted Chinese investment—the Beijing Construction Engineering Group has at least a 20% stake—and is set to attract even more connections at Manchester airport, facilitating further trade and growth. Airport City will take Manchester airport beyond its traditional use as a regional airport hub and transform it into an international business destination in its own right, providing a major regeneration opportunity for the surrounding area and helping to boost Manchester’s attractiveness as a major European business city.

[Sir Malcolm Bruce (Gordon) (LD)]

I congratulate the hon. Gentleman on securing this debate. I completely understand the case he makes for Manchester being the most important airport outside London, but will he acknowledge that air links are vital to areas such as mine in Aberdeen, where the shortest journey time to London by train is more than seven hours? British Airways’ withdrawal of our only link to London City airport is an indication of an airline that puts profit before service, given that the route is profitable, just not as profitable as other routes.

[Mike Kane]

Will the right hon. Gentleman bear with me for a few more minutes? I know many people want to talk about their regional airport, which is the focus of this debate. I will specifically mention airports that are represented by Members on both sides of the Chamber, which might be the appropriate opportunity for Members to get on the record. This is not my maiden speech, but I would like to push on with Manchester airport for a few more minutes.

Airport City provides an innovative and complementary offer to the region’s economy; with Media City and the city centre, it creates a modern business destination that will make full use of the existing infrastructure. The majority of workers and visitors will not drive to the airport; instead, they will walk, cycle, take the newly constructed tram, which will soon be in operation, or take a train or plane. It is estimated that the wider Airport City enterprise zone will create up to 16,000 new jobs over the next 10 to 15 years, including at University Hospital South Manchester’s medipark development. Airport City is likely to attract new long-haul airline routes to Manchester to support and serve the requirements of the global businesses based on site, which will in turn bring further growth, employment and destination options. Coupled with the extension of the Metrolink by 2015, Airport City will open up the south Manchester area and make it even more accessible for local people, creating employment opportunities and transforming the local community.

What else can regional airports bring? Manchester has established strong relationships with foreign airlines and brought significant investment to the region. Emirates and Etihad have their European call centres in the north-west. Etihad is one of the major sponsors of my football club, Manchester City, and is investing significantly in east Manchester, where the stadium is located. [Interruption.] I beg forgiveness from my hon. Friend the Member for Blackley and Broughton, who supports the team from the other side of the city. Manchester City’s new training complex will be completed in October 2014; it will include a £200 million football academy and a 7,000-seat stadium. Only last month, the leader of the city council, Sir Richard Leese, announced a new partnership with Abu Dhabi United Group, the club’s owners. The partnership with the city council will build more than 6,000 new homes in run-down parts of east Manchester as part of a £1 billion, 20-year deal—the single biggest residential investment that Manchester has seen for a generation.

There are many other examples of regional airports driving regional growth and jobs throughout the UK. From its modest beginnings as a world war two US air force base, Stansted has grown into the fourth busiest airport in the UK, serving 18.5 million passengers. It is currently the largest single-site employer in the east of England, employing more than 10,200 people in 190 on-airport companies and contributing more than £770 million to the local economy. East Midlands airport generates about £239 million for the regional economy and supports more than 8,500 jobs in the region. The east midlands is also a major base for manufacturers in the UK because of the proximity to the cargo connections provided by East Midlands airport. Most of the UK is within four hours’ trucking time of the airport. Aberdeen International airport provides 2,000 jobs on site and supports a further 4,000 Scottish jobs. Around 3.5 million passengers travelled from the airport in 2013 to more than 30 UK and world destinations. Leeds Bradford International was the fastest-growing UK airport in 2013, and it serves more than 70 destinations. It is Yorkshire’s international gateway and serves the largest metropolitan region outside London.

--- Later in debate ---

[Sir Malcolm Bruce (Gordon) (LD)]

I congratulate the hon. Member for Wythenshawe and Sale East (Mike Kane) on securing the debate, which has demonstrated a real interest in the subject. I also appreciate that he identified so many regional airports in some detail.

I had not intended to make a full speech, but local circumstances at the moment are of great concern to me. I put on the record that Aberdeen airport is a vital link for our oil and gas industry. It is a busy, expanding airport that offers flights to 50 destinations, more than half of which are international direct links, and access to a number of hubs—not only London, but Frankfurt, Copenhagen and Paris. All these links have been developed by an airport management who are keen to attract new business, have recently extended the runway and are currently upgrading the terminal buildings.

In passing, I have to say that it is a matter of great regret to me that about 25 years ago the terminal building was relocated from one side of the airport to the other. I protested at the time because I was campaigning to reopen the railway station next to the old terminal building, but was told that there was no future for railway links to airports and that there was more land on the other side. That is a matter of huge regret, because our airport gets totally road gridlocked at busy times of the day. That valuable link, which has been reopened—I got the station reopened—carries 750,000 passengers a year, in spite of being on the wrong side of the airport. That is what happens when there is no forethought in planning.

My concern, which I raised at Prime Minister’s questions last week and on which, I am glad to say, I got support from the Prime Minister, is that British Airways, having launched with a great flourish two years ago a direct link between Aberdeen and London City airport, is axing this service, without so much as a press notice, let alone any consultation with the local community. I only found out about it because I was alerted by a constituent who was trying to book a flight after the clocks go back and the winter timetable comes in, at the end of October, and found that the service was no longer available. That was the first time that anybody in the local community had been made aware of it. I have been in touch with the chamber of commerce, Oil & Gas UK, the Institute of Directors, local parliamentary colleagues and the entire business community, all of whom are completely stunned by the news and had no knowledge of it. Given the benefit that British Airways gets from the business travel that connects out of Aberdeen, it is at the very least pretty poor public relations and discourteous.

Questions have been raised about whether the route was actually loss-making. I am seeking, along with colleagues from all parties, a meeting with BA to try to get some explanation, a consultation and the possibility of reconsideration. I have to say that I am having some difficulty getting any response out of BA. It made a comment to the local paper to the effect that the decision was commercial and it was not prepared to discuss any details, but I take that as an indication not that the route was making a loss, but that there are other, more profitable routes to which BA prefers to transfer the planes. Unless BA proves otherwise, that is where I rest my case.

I have nothing against the business communities of Dublin, Glasgow or Edinburgh, all of which need to be properly served and which have important, good airports, but I question whether Aberdeen should lose its three flights a day so that Edinburgh can have 11 flights to London City alone, Glasgow eight and Dublin five. That is a demonstration of an airline that is simply looking at its own bottom line and not at its shared responsibility for business development—because, of course, this affects the economy.

I have had streams of contacts, including e-mails, from people saying, “This is such a wonderful service. It gives us a straight connection, quickly and efficiently, to continental destinations and to a flight directly to New York.” Much more to the point, is a much easier route into the City. I think that I am right in saying that pretty well every parliamentarian from the north of Scotland has used this service—we tend to travel together, so I hope that we do not precipitate any by-elections—and we have found it quick and efficient.

Let me just make a quick point about Heathrow, although I will not enter the “whether or not” debate: Heathrow is currently operating too close to capacity, with the consequence that massive delays arise from small disruptions. If anything happens at Heathrow, people can be delayed for three or four hours because of a 10-minute glitch somewhere in the system. For those of us who do not have to fly to Heathrow, the alternative of flying to City airport is a real advantage, which we crave and appreciate.

I am glad to have had the opportunity to put that on the record. I hope that British Airways reads this debate and acknowledges that it should at least engage with its customers in the business community, both to publicise its decision—and consult in advance to give people some opportunity to use it or lose it—and to indicate whether it is prepared, in the light of the representations being made, to reconsider. BA was anxious to tell us what a wonderful service it was, and last time I spoke to BA, it told us that it was pleased with the response, yet without even an announcement it suddenly terminated the service because it wanted to use the planes elsewhere. I contend that an airline as big as British Airways needs to behave much better towards its business clients and I hope that it reconsiders its decision.

Volcanic Ash (Impact on Aviation)

Lord Bruce of Bennachie Excerpts

Thursday 10th June 2010 Westminster Hall

[Malcolm Bruce (Gordon) (LD)]

I also represent an airport, Aberdeen, which is one of the BAA group of airports. Like Newcastle International airport, which is in the constituency of the hon. Member for Newcastle upon Tyne North (Catherine McKinnell), it was affected by the volcanic ash. I will come back to that issue.

First, I want to thank the Minister for her opening remarks, which were really helpful in bringing us up to date on where we are and where we are going. I also want to say to her that, although the industry has suffered severe losses, I agree with her that this is not the moment for it to look to the public purse to resolve its problems. I do not think that that would be a realistic outcome. Nevertheless, we must acknowledge that this incident was a shock that had severe economic repercussions, especially for the aviation industry, which we all know does not operate on the widest of profit margins, even at the best of times—and these are not the best of times.

It has been estimated that the industry lost something in the region of £50 million to £100 million a day, or at least most of those losses were suffered by the aviation industry. Perhaps 25% of those losses were suffered by other industries. To quote the proverb, “It’s an ill wind that blows nobody any good”, and this was an ill wind—exactly so.

Having said that, there were other travel operators that benefited from this situation. I speak on a personal basis in saying that, and I would also like to make a comment about the unpredictability of the movement of the ash. When I was due to travel down to London at that time, I was told that either Aberdeen airport or the London airports were likely to be closed on my day of travel, so I elected to take the train. Earlier this week, we had a debate in the House that reinforced the case for high-speed rail going to Aberdeen. I say that because that journey took me seven and a half hours—on the fast train from Aberdeen. In the event, as I was on the train, I was able to check in on my phone and find that neither of the airports that I was due to fly to or from was affected by the ash.

However, people have to make plans, so one issue that needs to be addressed—the Minister has addressed it—is the fact that, if such events occur again, there must be the greatest possible accuracy and predictability to enable people to plan their options. Clearly, that would be important and helpful. No doubt the Civil Aviation Authority, the Met Office, NATS and everybody else will be getting together to ensure that we have a much better operating system, which would give people advance warning and the opportunity to make alternative plans. That would be instructive.

It was also interesting to see a situation in which nobody had ever considered the possibility of a total lack of planes in the skies for a week, and to see the mindset of modern life suddenly confronted with a quite unexpected challenge. For some people, that was shocking, inasmuch as all kinds of presumptions went out of the window, but for others it was perhaps refreshing, in that it made people understand that not all these flight journeys were necessary and that teleconferencing could be used quite effectively. For some people, there were more pleasurable means of surface transport than air travel, at least for the shorter journeys. Indeed, I heard one woman say that she had never seen the Alps, other than from the air, until she had to drive through them to find an airport from which she could get home.

It is right to acknowledge that that situation made people think differently. I do not know whether the Minister or her Department feel that they need to express any view about that, but it is being suggested that people might reconsider the kind of holidays or business trips that they make. People may consider that the risk of possible disruption justifies thinking about not travelling so far or finding places to travel to where there is surface transport. People might plan their lives slightly differently, especially given the fact that, as the Minister has warned us, a much bigger eruption could occur at any time, which could lead to more serious disruption.

I want to return briefly to the particular circumstances of the airport that is located in my constituency. Much the same as the airport in the constituency of the hon. Member for Newcastle upon Tyne North, Aberdeen airport has suffered a direct loss—in landing charges and all the usual operating charges—which I estimate to be £1,056,000. That is a slightly more precise figure than the one that the hon. Lady gave for Newcastle International airport, but it is in pretty much the same ballpark.

BAA estimated that it lost £6 million per day for every day that the planes were not flying. Aberdeen airport recorded a 26% fall in passenger numbers in April 2010 compared with April 2009, yet in the first part of May 2010, the corresponding fall compared with the first part of May 2009 was 9.9%. In other words, the economic effect of the recession looks like accounting for 10% of the losses. The effect of the disruption from ash accounted for the other 15%.

Obviously, airports, which are suffering from the recession, find such losses quite a significant hit to take. Because it is part of BAA, I guess, Aberdeen airport did not even suggest to me or to my office that it was looking for compensation, but it was nevertheless anxious that people should be made aware that the incident had cost it money and that that was of concern to it.

The Minister touched on this point, but I want to ask whether she can determine the extent to which the UK authorities and the European authorities are operating in total unity, or do we feel that we have a distinctive concern of our own? The fact is that we are further north than many other European countries and consequently closer to the source of eruption, so the likelihood of disruption for the UK is probably higher. That would justify us having our own standards, if necessary.

As the Minister correctly stated, safety is the prime concern for us all. Interestingly, the public reaction was remarkably sanguine. I think that the vast majority of people, not being technically aware and hearing that there was a problem, would not have wished to take a flight into the unpredictabilities of an ash cloud. As the closure extended to a significant number of days, some remarks from the airline industry raised a slight concern, in spite of the qualifications made, that commercial considerations may have been prejudicing the industry’s judgment. That is understandable, but it reinforces the reason why such decisions must ultimately be taken by public agencies, not left to the commercial judgment of the operating airlines.

The public interest and the public good seem to justify the ability of Government and public agencies to take such decisions without the threat of financial liability for the consequences. It would be distasteful if, as some press reports have suggested, the airlines or the industry started to take European institutions, Governments, the CAA, the Met Office and so on to court over the issue. That would raise in the public mind a concern that public agencies whose job is to defend the public good and the public interest could suffer a commercial cost as a result of a decision that must be taken at short notice with the best of intentions. If necessary, the law should be brought into play to ensure that that does not happen.

That does not detract in any way from the fact that I have sympathy for the airlines. I recognise that they have a profit incentive and that none of them makes huge profits—indeed, hardly any are making any profit at the moment. However, we must ultimately operate on the basis of mutual good will and understanding. Conversely, the airlines are entitled to expect public agencies to seek the best possible advice so that unnecessary closures are not enforced and a full evaluation is made of the available options and diversions.

Interestingly, I read that there is some suggestion of an early-warning technology that could enable planes to identify dangerous concentrations of ash in flight and fly around, over or under them. It seems that we will accrue useful gains if we can make use of such technologies. I hope the Minister accepts that the right approach is a partnership between the public agencies and the industry. The public agencies should recognise that people want and need to fly, that flying is an economic necessity and that airlines must make revenues to keep their operations going. At the same time, public safety must be the overriding consideration.

On a parochial conclusion, the hon. Member for Newcastle upon Tyne North is right to speak up on behalf of the airport in Newcastle, and I hope she will forgive me if I make some additional special pleading. I mentioned the length of the fastest train journey from Aberdeen to London. For us, the airport is not just an alternative means of communication; it is our essential connection with the economic drivers of our area. Aberdeen is the international centre of the offshore oil and gas industry, so it is vital to us that people are able to fly in and out of the city. The disruption has had serious significance for us, as has the ongoing British Airways strike, although in that case we can at least use other operators.

I am sure that the House will understand, therefore, that I will be as concerned as anybody if long periods of closure or no flying are likely, but I am not prepared to defend the importance of flying to the economy or the airport to my constituency when passenger safety is the overriding priority. People need to be satisfied that the Government have the right balance of regulations in place and confident that those regulations are realistic, that they take account of the technical information available and airlines’ capability to adapt to different circumstances, and, ultimately, that they balance commercial interests and the public interest. If we achieve that, even if another major disruption of this kind occurs, I hope that we will be able to manage it in a way that does not lead to long-term complete closure of flying. If that is what safety requires, that is what we must do, but I would think that we had learned enough this time probably to be able to prevent it from happening again. I certainly hope so.

--- Later in debate ---

[Margot James (Stourbridge) (Con)]

I am pleased to follow my hon. Friend the Member for South Derbyshire (Heather Wheeler) in discussing the impact of the recent crisis. I represent Stourbridge in the west midlands, which—like every other town in the country, I dare say—is home to countless people who were inconvenienced or stuck abroad. The eruptions happened during the election campaign. I was due to attend the opening of a new building, including a ceremony and a whole day of events, at Old Swinford Hospital school, but it had to be cancelled because various teaching staff and governors were scattered around the globe.

Also—I will not say that this is worse—a couple of people from my election delivery team were detained in Dubai, along with about 10,000 or 15,000 other people, and were unable to return to the UK to help me to get elected. It was illuminating to see how many people are away at any one time. I was surprised to hear how many teaching staff were away on all sorts of educational trips, not necessarily with their students, in Australia and other parts of the world.

I will not repeat what my hon. Friend said about compensation and the need for transparency. I am sure that dealing with that is in the forefront of the Minister’s mind.

On the national impact, our airline industry is looking at £1 billion of losses, which is a serious matter. My local airport was not as badly affected as the one in South Derbyshire, but Birmingham airport suffered losses of £2 million. There is also the ongoing effect to consider. This week, I spoke to the chief executive of Birmingham airport, who informed me that things seemed to be back to normal with long-haul flights—people visiting relatives in far-flung parts of the world—business flights and short-haul, two-week summer holidays. However, short, weekend-break holidays, when people spontaneously think that they might go somewhere for the weekend because there is an offer on easyJet, still seem to be struggling. People are still nervous about whether they will get back in time for work or other commitments at the end of their weekend break. Therefore, we should not forget the impact on future airline business.

Obviously, we need to learn from the way the crisis was handled in April. There certainly seems to have been a lack of application of research on identifying safe thresholds for volcanic ash in the atmosphere. My right hon. Friend the Minister gave examples of near disasters that have occurred over the past 20 or 30 years, but they seem not to have created a sense of urgency about improving regulations. As a result, the only option left in April was to close all our airspace. Now that the Government are going to get a grip on the issue, I hope that that will not be our only option when an eruption occurs again, as I am sure one will.

Initially, the main criticisms were that the UK allowed its airspace to remain closed for at least 24 hours longer than the rest of Europe. There were also questions over the extent to which help was given to passengers stranded around the globe. My hon. Friend the Member for South Derbyshire mentioned people on the west coast of America whom this country and the former Government could have done more to help, and I am sure that that is true of people who were stranded in other parts of the world.

I have also heard criticism from people in the airline industry that there was a real lack of political leadership at the outset of the crisis. It took a full three days before leading members of the Government were on the airwaves giving a lead as to what actions should be taken. The first time they came on the airwaves, it was to talk about sending the fleet to Spain to collect people who were stranded there, which was not the sort of initial leadership that passengers and airlines were looking for. I am sure that our new Government will learn from the leadership issues that arose during the crisis.

Obviously, there has been no major volcanic explosion in Europe for several hundred years, so we cannot blame anybody too much for the fact that all the airspace had to be closed. If I have mentioned certain matters, however, it is because there were things that could have been done, despite the fact that nobody expected the crisis to hit.

In finishing the first part of my speech, I pay tribute to Willie Walsh, chief executive of British Airways. My right hon. Friend the Member for Gordon (Malcolm Bruce) said that most of us would not step into an aeroplane knowing the risks involved in flying into volcanic ash. Someone had to take the plunge and test a flight to see what the effects of ash in the atmosphere would be, and I greatly admire the chief executive of British Airways for leading from the front in that respect.

On the future, I hope that the research being done by easyJet will result in improvements to radar technology. I gather that the company is already testing its radar technology and believes that it will be good enough to predict ash clouds from about 60 miles away so that pilots will be able to fly around them. However, there is cause for a degree of caution about how far that will enable us to overcome the problem in the short term.

[Malcolm Bruce]

I want to reinforce that point. EasyJet should be commended for what it is doing, but does my hon. Friend agree that, if the technology is to make a viable contribution to a solution, it needs to be part of a regulatory arrangement, rather than the individual choice of one airline?

[Margot James]

I strongly agree with my right hon. Friend. It should be part of not only a UK, but an international regulatory solution. None the less, it is good to know that these technological developments are under way, although there is a fair way to go, even with the good work that easyJet has started. It is important that we understand the impact of not only denser ash clouds, but fragments and shards in the atmosphere. The key is to reach an understanding of what constitutes a safe level. I think that 2 mg per cubic metre is the accepted standard, but we need a greater evidence base to support that.

My right hon. Friend the Minister talked about the danger of the Katla volcano erupting. I gather from reading expert reports that it could have 100 times the impact of the previous volcanic eruption. Other experts—I am delighted that I now know that they are called vulcanologists, which sounds like something out of “Star Trek”, although I am sure that we will be hearing more from them in the future—predict that the Icelandic volcanic system will enter an active phase in the 2030s, so it is timely that the Government are starting to add weight to the priority of the issue.

The events that we are discussing have been a salutary experience for everyone who has been caught up in them. We in the west somehow think that we have conquered nature in many respects in our daily lives, but recent events are a timely reminder that nature is still very much in charge.

I would also emphasise the fact that nobody—no Government, no regulatory body, no industry—can predict and plan for everything. The Government are absolutely on the right path in looking for a regulatory solution and working with the industry, and I am sure that we will get there, but there is no perfect solution. I have spent most of my working life in the pharmaceutical industry, and there is no such thing as a medicine without a risk, just as there will never be such a thing as a flight without a risk. We have to accept that there will always be a risk, but we have to reduce it to manageable levels. We should opt not for the no-fly solution that we were all panicked into, but for a more manageable level of risk reduction.

New politics means different things to different people. To me, it is important that we understand that there are limits to what Governments can do, so we should not be too quick to blame the previous Government for the problems that I have tried to do justice to this afternoon. We should not expect too much or a perfect solution from this Government or any future Government.

I am sure that my right hon. Friend the Minister and her team will do their very best to move the situation on so that the airline industry and passengers are not once again brought to a halt and dramatically inconvenienced in the way that they were, and so that we manage the risk of taking to the air. However, nothing can ever be perfect.

High Speed Rail

Lord Bruce of Bennachie Excerpts

Wednesday 9th June 2010 Westminster Hall

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

May I welcome you to the Chair, Mr Betts, and express my pleasure at having secured an Adjournment debate on such an important matter? Colleagues who were here before the election will know that this is not the first time I have spoken about high speed rail in Westminster Hall—indeed, it is not the first time I have secured a debate on the subject. High speed rail is a matter of particular importance to my constituency and my city, as it is to many other parts of the UK, which is why I am a long-standing campaigner for it.

As the years have gone by, the case for high speed rail in the UK has become stronger. In the past five years, the number of passengers travelling on the rail lines has risen by about 40% and freight has risen by 60%. Given the urgent need to tackle climate change by encouraging travellers to shift from air and road transport to rail, the case for investment in high speed rail becomes even stronger. The case for high speed rail relates not only to the new lines that it would create, but to the capacity that it would free up on existing lines.

I was greatly encouraged by the previous Government’s announcement in March of a new line from London to Birmingham as the first phase of a network that would lead to Manchester and Leeds, and thereafter to Glasgow and Edinburgh. Members will recall that that was based on a report by High Speed 2 Ltd, which the Government established a year earlier. It was envisaged that construction would start in 2017, following the completion of Crossrail, and that the network would be opened in phases from 2026. The estimated cost of taking the line as far as Manchester and Leeds was £30 billion.

We seem to have reached a considerable degree of political consensus on the development of high speed rail in Great Britain. That will obviously be necessary because of the long time scale over which any such network will be developed. It will take many decades to build a complete network, which will obviously involve many Governments and, no doubt, many political parties. I welcome the fact that, along with the commitment from my party, there now appears to be a general political consensus on the need to develop a high speed rail network in the UK.

[Malcolm Bruce (Gordon) (LD)]

I congratulate the hon. Gentleman on securing the debate and commend him for his support for high speed rail. Will he acknowledge that, even in the present circumstances, he and his constituents can travel from Edinburgh to London in about four hours, whereas the shortest journey time from Aberdeen to London, only a further 110 miles, is seven and a half hours? Does he therefore agree that a high speed rail link must also ensure that there are fast links to connect to any high speed network that is developed?

[Mark Lazarowicz]

The right hon. Gentleman makes an important point. I do not want to intrude on matters that are the responsibility of the Scottish Parliament, but one of the important aspects of the debate on high speed rail is the need for discussions and co-operation between the UK Government and the Scottish Government, to ensure that the network will benefit not only the cities that it serves directly, but places further along the line, even if those places are not part of the network from the start. I will return to that point later. In due course the network should extend to not only the UK’s largest cities, but most major cities. I am sure that Aberdeen would qualify as such.