Flying Schools: Liquidation

Lord Balfe Excerpts

Monday 13th November 2023 Lords Chamber

Asked by

[Lord Balfe]

To ask His Majesty’s Government whether they will convene a working party consisting of the Civil Aviation Authority, Financial Conduct Authority, the Department for Transport and any other relevant body, to examine the case for strengthening consumer protections for customers of flying schools who lose money when such schools go into liquidation.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, we fully sympathise with those affected and recognise the substantial impact on those individuals. It is important to note that these recent closures represent around 1% of the training school market. We are actively considering options to support current and potential future trainee pilots, including improving guidance from the Civil Aviation Authority.

[Lord Balfe (Con)]

I thank the Minister for her Answer, but three flying schools have gone into liquidation this year. Individual customers are owed up to £80,000 each, and a debt of over £4 million is very unlikely to be paid by the liquidators overseeing this. Surely it is the job of government to protect individuals who are put in this invidious position, where they have to pay up front for a service that is just not being delivered. Certainly, in one case, a flying school was collecting money almost up to the day that it collapsed. We need the Minister to do something. My Question suggested a framework for moving forward. Will she agree to investigate that framework and see whether she can make it work?

[Baroness Vere of Norbiton (Con)]

My noble friend is, I believe, honorary president of BALPA. I am sure he will be reassured to know that I met BALPA, the airline pilots’ union, on 19 September alongside the CAA to discuss this issue. A number of ideas were taken forward but it is clear that we need to improve the guidance and information available to trainee pilots such that the amounts of money handed over are not excessive, because they do not need to be. There is a significant amount of competition in the flying school market. If a candidate is asked to hand over too much money, frankly, he or she should potentially look elsewhere.