Draft Airports Slot Allocation (Alleviation of Usage Requirements) Regulations 2022

Mike Kane Excerpts

Tuesday 1st March 2022 General Committees

[Mike Kane (Wythenshawe and Sale East) (Lab)]

It is always a pleasure to serve under your chairmanship, Mr Dowd.

I feel the hot breath of my hon. Friend the Member for Cardiff West on my neck, so happy St David’s day to you all. St. David was canonised by Pope Callixtus II in 1123. I doubt he had to get up at 9.30 to attend one of his synods to discuss airport slots, but genuinely happy St David’s day to everyone.

Around two years ago, the country was paralysed by the coronavirus pandemic, and after a considerable effort to repatriate Brits abroad, the business and leisure market and the aviation industry were effectively grounded. For two years the industry has struggled without a sector-specific deal. The Minister and I have had that discussion previously and we disagree about what the package should have looked like, but we move on today.

I believe that the Government’s approach of tinkering around the edges has led to many jobs being lost and many businesses in the sector burning through cash reserves daily. But we digress. The skies are reopening, although more slowly in the UK than in the rest of the world, and we now need to ensure that the sector is able to recover and support itself again. It is absolutely crucial that we protect what we have.

Slot rules are important in ensuring competition for routes, and in turn give passengers more choice and can lead to better fares for them. Smaller regional airports that do not have incumbent carriers are often able to make slots available for airlines, particularly new entrants to the market, offering good deals for travellers and allowing the regions to open themselves to new visitors and opening the rest of the world to those living in our regions. It should be a win-win situation, but that is currently not the case for all airports and operators.

The advisory note to the SI talks about a consultation that took place over a four-week period between November and December last year. However, three weeks into that consultation the rules changed again and the industry once again plunged into confusion with travellers and industry not knowing where the goalposts had moved to and when or if they would move again. That uncertainty led to bookings dropping off a cliff for the Christmas period. It is not acceptable for that to keep happening to the third biggest aviation sector in the world. We need more certainty in the future.

At the time when passengers were unable to fly without expensive testing and potentially expensive quarantine to follow it was nonsensical for almost empty flights to take off to satisfy grandfather rights to slots. We have seen recent news reports stating that airlines have operated thousands of ghost flights from UK airports during the pandemic—32 airports around the UK had flights of less than 10% capacity. An average of 25 such flights operated every single day throughout lockdown, totalling just under 14,500 over an 18 month period. I am aware some of those flights were carrying cargo and some were repatriation flights, but not all, and it would be disingenuous to imply that they were.

We all agree the industry must improve its green credentials, and I have grave concerns that the insistence of using any fixed percentage of slots makes a mockery of that aim, particularly if the process is being used by incumbents to hoard slots and to monopolise routes. When demand was low due to Covid, slot exemptions were the right thing, but now as demand grows again, that prompts the question ‘Should airlines be subject to competition through slots rules?’ Obviously it remains important to provide some consideration for markets that have yet to reopen or are still severely restricted such as east Asia or other long-haul routes.

I undertook some research of my own with the industry and operators, and the findings suggest that slots are still very contentious. Their allocation must be resolved in an equitable way that enables operators to recover while remaining committed to a green recovery. The environmental impact of those ghost flights is something which concerns me gravely and will continue to do so. By reducing the 80:20 rule by just 10% to 70:30, the Government could still be complicit in multiple flights taking off with many empty seats, seats that could have been sold at a reduced price at least to ensure that UK residents get some benefit from those tens of thousands of empty seats.

The last time we debated this matter I asked the Minister whether the Government would be dynamic and responsive enough to reassess the situation as the skies reopen and received assurances that there would be flexibility. I trust that is still the case. Another ask we have is that Government commit fully to funding the airspace modernisation scheme. A one-year commitment cannot really be classed as a commitment when it comes to doing something so vital that would reduce the need for stacking, enable point to point operations and increase capacity in our system. Indeed, that lack of ongoing commitment could be classed as further tinkering around the edges. What the industry needs is commitment to it, to show it that despite being left for almost two years without a sector-specific deal it is not treated as an afterthought by the Government.

The Opposition have been broadly supportive of a slot ratio and will continue to be so, but we have slots because of our lack of runway capacity and airports. That has not been addressed. The Prime Minister has tinkered around the edges, both in his current role and as Mayor of London, without addressing that fundamental problem, and it is one that our competitors are addressing. It would be great to resolve the issue of slots permanently and equitably, and move forward to a greener, cleaner strategy, but that is not for us today.

[Kevin Brennan (Cardiff West) (Lab)]

My hon. Friend is absolutely right that the terms of the instrument only apply temporarily until 29 October 2022. That is why the Government say that they have not prepared a full impact assessment of the SI. May I ask the Minister through my hon. Friend to clarify what will happen after 29 October 2022? Will we simply revert to the previous position? If a new permanent regime is proposed, will the Minister commit to providing the House with a full impact assessment?

[Mike Kane]

I note my hon. Friend’s points and I will leave the Minister to respond to them.

We are considering this SI in a liberal democracy in which I can directly ask the Minister questions and hold him to account. Not all countries can do that today. I want the Minister and the House to know that the Opposition support the decision of the Secretary of State for Transport to ground Aeroflot and to ban the use of private Russian jets in this country. Will the Minister think of further ways in which we can do more? I note the article in today’s edition of The Times that speaks of banning Russian ships and cargo vessels from entering any UK ports. We will not have any truck with this dictator, Putin. Our quarrel is not with the Russian people, but with their current leader.