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

Baroness Randerson Excerpts

Tuesday 26th January 2021 Grand Committee

[Baroness Randerson (LD) [V]]

My Lords, first, I thank the Minister for her introductory explanation. This SI extends temporary provisions to disapply the usual rules for airlines which get into financial difficulty. In normal circumstances, their operating licence is revoked or replaced by a temporary licence. The SI recognises that previously financially healthy airlines are financially at risk while travel restrictions are in place, meaning that they can continue operating without revocation or suspension of their licence so long as they were previously financially stable, safety is not at risk and there is a realistic prospect of restructuring. Similarly, it allows airports to replace ground-handling service providers without going out to tender. These seem sensible measures at the moment, but I have some questions about the detail.

First, week after week there is fresh news of crises among airlines worldwide. Most have responded by downsizing their fleets and personnel, but many clearly face serious financial difficulties still. Can the Minister tell us how many airlines in the UK have been accorded the special measures briefly described by me and referred to in the regulations? Have they been allowed to continue operating when, in normal circumstances, they could have lost their licence?

The process is subject to conditions relating to previous financial viability. Can the Minister explain how those tests are applied in the UK? Is this done by the CAA, the CMA or another government agency? Many airlines, as previous speakers have pointed out, have shareholders in the UK, the EU and across the world; what international co-operation and liaison is there between licensing authorities in such cases? Can the Minister explain how they are dealt with? On ground handling, have there been any instances of airports using the non-tender approach allowed?

Finally, I will ask about the general situation for aviation and, indeed, the travel sector generally, as several other noble Lords have. We seem to be heading towards tighter restrictions in relation to quarantine hotels, which are a very sensible response to the situation. Last month, the ONS published data that shows that the travel sector has been the hardest hit sector in the UK economy. It contributes £65 billion a year to our GVA and sustains 1 million jobs, but the Government are still providing no support targeted specifically to the travel industry; there has been no Eat Out to Help Out for it.

The Minister knows about this—I have asked about it on numerous occasions—and she always refers me to the standard package of measures available for businesses generally, but will she now accept that airlines, airports and all those companies that support them and the travel industry as a whole now need a dedicated package of support? Their request is that the Global Travel Taskforce be reconvened so that the travel industry works closely with government to tackle this very specific problem.

The measures in this SI reflect that, very early on in this pandemic, the EU specifically recognised that airlines and support companies, such as ground handlers, would face financial crises. Almost a year on, the travel industry urgently needs the UK Government to show similar awareness of it as a whole.