Covid-19: Airline Sector

Baroness McIntosh of Pickering Excerpts

Monday 29th June 2020 Lords Chamber

Asked by

[Baroness McIntosh of Pickering]

To ask Her Majesty’s Government what assessment they have made of the impact of COVID-19 on the airline sector; and what steps they are taking to support that sector.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con) [V]]

My Lords, the Government recognise the challenging times facing the airline sector because of Covid-19. They have announced an unprecedented package of measures that the sector can draw upon, including a Bank of England scheme for firms to raise capital, time-to-pay flexibilities, and financial support for employees.

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

My Lords, given the parlous state of the airline industry and the fact that it is a major employer and driver of the economy and vital for delivering the project of global Britain, does my noble friend recognise that a further package of emergency measures, such as a 12-month waiver for air passenger duty and an extension of the furlough scheme for aviation, is vital to safeguard the sector’s future, to stimulate demand and to safeguard airline jobs?

[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.