Flybmi

Clive Betts Excerpts

Monday 18th February 2019 Commons Chamber

[Ms Ghani]

It is good that my hon. Friend notes the importance of Derry City and Strabane District Council’s role in procuring and maintaining the contract, and it is interesting to note the council’s positivity about other airlines taking on the route. I noted over the weekend that Ryanair was offering flights for less than £10 for those who wished to travel from Belfast, although that means making another journey. We are obviously committed to supporting our regional airports, to holding the CAA to account so that it monitors what airlines are doing when they are struggling and to examining what we can do to help passengers to continue their journeys across the UK.

[Mr Clive Betts (Sheffield South East) (Lab)]

It is quite frankly astonishing that the Minister did not mention Brexit in her initial comments, because the company certainly did. Flybmi said that uncertainty around Brexit and the possible costs of needing both UK and EU licences in the event of a no-deal Brexit were factors in its decision to go out of business. Will the Minister now make it clear whether all airlines should be planning for a no-deal scenario and looking at how to get dual licences?

[Ms Ghani]

The EU has been very clear that the UK aviation industry can continue as it is. We have been having good conversations with the EU on this, and we have tabled a number of statutory instruments and regulations to make sure we can continue flying. I just do not buy the argument that planes will not fly.

[Mr Betts]

These won’t fly anymore.

[Ms Ghani]

No, but Flybmi’s accounts show that, as far back as 2014, it was not as healthy as it could have been. If a company undertakes flights that are barely at 50% capacity, it is making a loss. To make an assumption that it is all down to Brexit just does not wash.