Flying Schools: Liquidation

Lord Sikka Excerpts

Monday 13th November 2023 Lords Chamber

[Baroness Vere of Norbiton (Con)]

As my noble friend is aware, the aviation sector and the flying school sector are private sectors. I reassure him that we have had a number of conversations with airlines around the need for skills, including new pilots. The airlines do not currently see a pressing pilot shortage; however, I am very pleased that both British Airways and TUI now have cadetship programmes in place. That is great for supporting new trainees, but also really good for increasing diversity.

[Lord Sikka (Lab)]

My Lords, the issues raised by the noble Lord, Lord Balfe, are experienced by millions of people who pay for goods and services in advance, but then do not receive them because the supplying entity has gone into liquidation. A good way to protect innocent customers is to ring-fence all credit balances. If the Minister disagrees with that suggestion, what else would she propose?

[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.