Covid-19: Airline Sector

Lord Caine Excerpts

Monday 29th June 2020 Lords Chamber

[Baroness Vere of Norbiton [V]]

My noble friend is quite right that it is important that we give all necessary support to the aviation sector. She mentioned two possible things that could be done. On air passenger duty, that is paid by passengers, of whom there are of course very few at the moment, but to the extent to which an airline might have had previous liabilities, they have been allowed to delay paying that under the Government’s time-to-pay arrangements. On furlough, that scheme is already in place until October.

[Lord Caine (Con) [V]]

My Lords, with the aviation industry not expecting demand to rise to pre-lockdown levels until 2023-24, and companies such as British Airways currently haemorrhaging nearly £30 million a day, does my noble friend agree that what the sector now needs above all is certainty? Does she accept that, while the proposed air bridges are welcome, each day’s delay in introducing them means significant and potentially crippling further losses to the industry, and that these air bridges need to be fully functional as a matter of urgency?

[Baroness Vere of Norbiton [V]]

My noble friend will be aware that the Government are considering international travel corridors not just for air travel but all forms of international travel. We are looking at exemptions in respect of particular countries and particular routes. Many options are under consideration and there will be an announcement in due course.