Flybmi

Paula Sherriff Excerpts

Monday 18th February 2019 Commons Chamber

[Paula Sherriff (Dewsbury) (Lab)]

The Government have been consulting on arrangements for airline insolvencies for almost a year, so will the Minister explain how yet another UK airline can fail without the Government taking any action? Can I press the Minister to explain why the airline continued to sell tickets just hours before going into administration?

[Ms Ghani]

An independent review of airline insolvency by Peter Bucks is due to report, and it will make clear what happens to airlines when difficult decisions are made. There is an interesting point to note about how airlines can continue to sell tickets when they are struggling, which is one of the peculiar things that happens in the sector. If an airline were to stop selling tickets, that would make it clear that it was about to go into administration, so airlines do keep selling tickets quite close to the point at which they are about to go into administration. The Peter Bucks review will no doubt examine that point.