Aviation Sector

Debate between Kieran Mullan and Greg Smith

Thursday 10th September 2020 Commons Chamber

[Greg Smith (Buckingham) (Con)]

I welcome the Under-Secretary of State for Transport, my hon. Friend the Member for Witney (Robert Courts), to his place. This is an incredibly important debate for my constituency, as Buckingham is conveniently commutable from Luton airport and Heathrow airport and not too far to commute from Birmingham airport. Many of my constituents who work for airlines and airports have written to me with horror stories about the way they have been treated, particularly by British Airways, but also easyJet.

I congratulate my hon. Friend the Member for Bexhill and Battle (Huw Merriman)—the Chairman of the Transport Committee, on which I serve—for securing the debate. With time being short, I will not repeat the arguments made, but I certainly agree with the central premise that, to get aeroplanes in the sky once more, to get people flying and to save this sector, we have to look at increased testing capability.

I very much welcome the £8.5 billion that the Government have already made available to the aviation sector. While we look to save jobs, which is the most important thing, we have to accept that no change is not an option. Anybody who argues for simply no change is probably not going to win that argument. Where we have to look most specifically is at how we are going to get British Airways, in particular, to change its mind and its attitude to its employees. I add my voice to those of right hon. and hon. Members who have spoken on that subject. Let us focus on the balance sheet of British Airways: the company made a £1.1 billion profit, after tax, last year; it has £2.6 billion in cash reserves; and it has £5.8 billion in shareholder equity. All those facts were detailed in the Select Committee report, and all that is before we get on to the parent company, IAG, and its reserves. So as BA takes a cold, hard look in the mirror, it could consider, having taken so much furlough money from the British taxpayer, being a little more like Barratt Homes in its approach to taxpayers’ money.

[Dr Kieran Mullan (Crewe and Nantwich) (Con)]

I hope that the new chief executive officer of IAG is listening today and has heard so many different voices from across the Chamber. Does my hon. Friend agree that now would be the time for the company to think again and come to a reasonable agreement with its workforce?

[Greg Smith]

I absolutely agree with my hon. Friend that British Airways has behaved appallingly throughout this crisis. Covid has brought challenges to every business, of every size, but when we look at some of those balance sheet numbers I just detailed, we see that British Airways really does need to take that cold, hard look in the mirror. In the minute I have remaining, I wish to talk about a particular issue that has come to my attention.