Flybe

Baroness Randerson Excerpts

Tuesday 14th January 2020 Lords Chamber

[Baroness Vere of Norbiton]

I thank the noble Lord, Lord Tunnicliffe, for his questions. He did a good job of outlining how important Flybe is to regional connectivity. The Government are aware of this, and I assure noble Lords that for certain routes public service obligations will be in place. These are put in place to make sure that regional connectivity continues. I can reassure noble Lords that there is a mechanism by which local authorities can select a new provider for seven months and then retender that particular route. However, I stress that Flybe continues to operate as normal and that passengers should arrive at the airport for their flights as planned

On air passenger duty, as with all taxes the Government keep it under review. On the issue of sustainability in the future, we are carefully considering the climate change advice we received recently. We will set a clear ambition for the aviation sector. We plan to update both Houses shortly on the Government’s position and we will have proposals for consultation.

[Baroness Randerson (LD)]

My Lords, there is clearly regrettable instability in the aviation industry at the moment and a new approach is required. Can the Minister tell us when we can expect the aviation insolvency Bill to come to this House, because it is obviously urgently required?

It is important to note that Flybe is of much greater significance than Monarch, for example, to our country because it is about much more than interrupted holidays. It provides that vital link with some of the most isolated and distant parts of the UK. The answer to the problem should not include a general reduction in APD. If the Government are to have any credibility on climate change issues, they should not go down that path. Will the Government commit to investigating the domestic routes involving Flybe to sort those which are genuinely socially necessary from those which are economically viable? Will they look at increasing subsidy to those socially necessary routes in isolated areas where there is no viable rail alternative? Where there is a railway, will the Government commit to reintroducing good reliable services to the most distant parts of this country?

[Baroness Vere of Norbiton]

The noble Baroness, Lady Randerson, has made some very helpful suggestions, should they ever be needed in due course, about looking at which domestic routes would benefit from support. I reiterate that this airline continues to operate as normal and therefore at the moment the Government have no plans to kick off that work.

On the airline insolvency review, it follows from the important work which was done for the department by Peter Bucks. He looked at airline insolvency. As I am sure the noble Baroness knows, it is incredibly complicated. When he published his report, he said that there is no silver bullet. The noble Baroness will also know that we announced legislation in this area in the Queen’s Speech, and I expect it to come to the House in due course.