Regional Airports

Jim Shannon Excerpts

Wednesday 7th July 2021 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate. First, I congratulate the hon. Member for St Austell and Newquay (Steve Double) on bringing forward this debate. Westminster Hall debates offer the opportunity for those with a deep interest to participate, so I thank him for providing the opportunity to do just that.

We need to make no mistake here. I know the Minister understands that; all the hon. Members who have spoken have expressed it and I hope to further express their viewpoint. This is a UK-wide issue because the ripples of difficulties for the airports will affect every community in the United Kingdom, but I will speak specifically about Northern Ireland. I know the Minister has a deep interest in these matters and I am pleased to see him in his place. As a Northern Ireland MP, flight connectivity is vital for me. It is the reason I get here on time and get home on time. Flying over on a Monday or early on a Tuesday morning and flying back on a Thursday night is my routine. If Northern Ireland is to be on a path to fulfilling its full potential, some of that journey will be in the air, through reliable and frequent national and international flights.

Let me put on record my gratitude to the Minister for all his endeavours, his vast knowledge and his interest in this matter. I am not saying that other Ministers do not have that, but it is always good to represent our views to him and to get a response. I am very pleased to see the spokesperson from the Scottish National party, the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) and the Labour spokesperson, the hon. Member for Wythenshawe and Sale East (Mike Kane). They also have a deep interest in this matter and I know they will reinforce the opinion of other hon. Members.

The statistics are clear: aviation is still firmly in the grasp of the worst crisis it has ever faced. Numbers of passengers travelling through United Kingdom airports last summer were the lowest since 1975. My goodness, that is hard to believe. Between April and December 2020, passenger numbers were down 89.3% year on year. In quarter one of 2021, they were down 94% compared with 2019—a drastic reduction in figures and in revenue generated. In the same period, passenger numbers were down almost 89% in London airports, 91.1% in English regional airports, 89.1% in Scottish regional airports, 86.1% in Northern Irish airports and 96.8% in Welsh airports.

Taken together, that meant that the economic output for the air transport sector between February and December 2020 reduced by 89%. That is phenomenal and really shows the magnitude of the pressure on the sector. I am not a wealthy man and I do not come from a wealthy background, but I cannot imagine that anyone other than the very wealthiest in this country could afford to cut their income by 89%. It would be impossible to manage. Yes, furlough has helped and I thank the Government for all they have done with the furlough scheme, the grants and the assistance. But the fact is that regional airports are at crisis point and need help to get through and out the other side, where hopefully we will find ourselves in a better position. We will, but we are all asking just when that will happen.

It is nobody’s fault, either. It is always very easy to point the finger but Government cannot respond to something that is not within their control. I asked the Secretary of State for Transport the other week how we can give confidence to travellers who want to go on holiday. But that is not within his control; it is controlled by all the other countries. It is hard for him to say, “I can tell you what is going to happen and give confidence to your constituents that they can travel to the States or Europe or wherever else they want to go and return safely.” Between April and September 2020, UK airports lost £2.6 billion in revenue, with passenger numbers peaking at 22.1% of 2019 levels in August 2020—up some 11.6% from July, but falling dramatically afterwards. On the current trajectory, summer 2021 will see significantly fewer passengers, meaning airports will lose at least another £2.6 billion in revenue.

We had hoped that we would be coming out of this situation this summer. The Government have set the trend. The Prime Minister’s statement was welcome because, as he said and as the Government’s strategy now seems to be, we need to live with covid and deal with it in such a way that life can hopefully resume as normally as possible. What can we do to alter this situation? We must look at how other nations handle their flight systems and how they treat those coming to their borders who are fully vaccinated. Perhaps the Minister and the Government are seeing a developing trend for how to deal with that.

Regional airports are clear on what they need. The Airport Operators Association briefing puts it well. Support measures should be extended. Office for National Statistics figures show that 57% of aviation jobs are currently furloughed, so the job retention scheme should be extended beyond 30 September for jobs in aviation and travel, or replaced by another grant scheme that supports such jobs beyond that. The restrictions are having an impact on regional airports as well as on international travel—they cannot be divorced. If we in Northern Ireland want to catch international flights, we have to go to Dublin in the Republic of Ireland, or to Manchester or Heathrow. If international flights are cut back, that will have an impact on regional airports and domestic travel.

The airport and ground operations support scheme should be extended beyond 30 September, and the £8 million gap should be removed. Currently, AGOSS provides only minimal financial support of £8 million at most—equivalent to the total business rate bill for airports. AGOSS grants cover fewer than 14 days’ worth of an airport’s operational losses, so they do not last long. Further financial support should be put in place, because airports remain open for critical services. We have to remember that it is not all about domestic travel; it is about the coastguard, the police, the air ambulances and maintenance for offshore oil gas and windfarms, despite near zero passenger numbers. This support should cover operational costs, including those for policing and air traffic, and regulatory costs such as the charges levelled by the Civil Aviation Authority. I gently and respectfully ask that consideration be given to that, because there are things that have to happen for the emergency services and for workers. The hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) referred to that, and I know that the Scottish National party spokesperson, the hon. Member for Paisley and Renfrewshire North, will do so, too.

It is essential that we protect the viability of airports, especially in Northern Ireland, and indeed in all the regions of Wales and Scotland that are hampered by their distance from the mainland. We are very much an integral part of the United Kingdom of Great Britain and Northern Ireland—I am always keen to put that on the record—and as such should be fully integrated in the decision making on the way forward. I join others in asking the Government and the Minister to step up and step out for this sector by providing long-term support in a clear and defined way to ensure viability and connectivity long beyond this debate.