Flying Schools: Liquidation

Baroness Randerson Excerpts

Monday 13th November 2023 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I think the noble Lord is trying to tempt me into the wider economy, when I am focused on flying schools. But when trainee pilots pay money over to the flying schools, they should ask themselves whether it is reasonable. BALPA is considering a finance fairness charter, which I am sure the noble Lord would also support, which would ensure that flying schools that sign up do not accept excessive advance payments, and that they commit to transparency regarding costs and charges.

[Baroness Randerson (LD)]

My Lords, the Minister seeks to downplay the significance of these problems, and the demise of these three companies. She seeks to downplay the amount of money that is owed to individuals—£80,000 is a significant amount to most people. Is she not concerned that the situation will undermine the reputation of the UK aviation industry, and the skills for aviation that we really need to build up as a nation, rather than undermining them with the failure of companies?

[Baroness Vere of Norbiton (Con)]

Three flying schools have closed. One of those was a planned closure, and the trainees were not impacted. Two were unplanned closures, and trainees were impacted. There remain around 270 flying schools. As I said, it is a small amount. The noble Baroness mentioned £80,000; I cannot corroborate that figure. That seems quite high to me; it would mean that somebody is paying for their entire training up front. Again, this is the point I am trying to make; it is up to the trainees. Working with BALPA and the CAA—wherever trainees get their information—it is about getting the information to them to say: “You do not need to pay vast amounts of money up front, and if a flying school is asking for that, it is entirely reasonable to go elsewhere”. As I say, there are 270 flying schools in the UK.