Covid-19: Aviation

Lord West of Spithead Excerpts

Thursday 4th June 2020 Lords Chamber

[Baroness Vere of Norbiton]

The noble Lord is quite right that we need some positive support for the aviation sector. That is why we have the aviation restart and recovery expert group, which includes representatives from airlines, airports, unions and industry bodies. It is putting together the best minds to work out how we can make sure that our aviation sector comes out of this as well as it possibly can. For example, it is setting up common health standards to be applied to an air passenger’s journey, from home all the way through to the other side. That is the sort of system that will help the sector to get back on its feet.

[Lord West of Spithead (Lab)]

My Lords, with an estimated 16,000 of the world’s commercial aircraft grounded and stored, airlines are doing whatever they can to cancel orders and delay the delivery of ordered aircraft. Some airlines are falling into administration. Many older aircraft have been placed in store and are unlikely ever to be able to be flown again. Commercial aircraft and engine manufacturers, along with those engaged in important supply chains, have been forced to act to ensure survival. How can we ensure a healthy and fit-for-purpose aviation industry, which will be crucial for economic recovery and hoped-for growth? Have our experts made any prediction that the Government are using for planning purposes of when the recovery of airline usage will occur and when, if ever, it will return to current levels? Will Project Birch provide similar support for our aviation industry as that being provided by the US Government and the Dutch and German Governments for their national airlines?

[Baroness Vere of Norbiton]

I refer the noble Lord to the response that I have just given about the aviation restart and recovery expert group. It is looking at all the issues that he has, rightly, pointed out, including the impact on the wider supply chain across the aviation sector. Project Birch is not industry-specific but is open to any company that makes a significant economic contribution to our country. It will offer bespoke support to a specific company, and that will be done from a value-for-money perspective for the taxpayer, on a company-by-company basis. In that regard, we will be able to support some of our most important companies that contribute to our economic future.