Blackpool Airport

Robert Goodwill Excerpts

Monday 3rd November 2014 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)]

I congratulate my hon. Friend the Member for Fylde (Mark Menzies) on securing this debate on the future of Blackpool airport. I commend him for his engagement with those who have been striving to secure a future for the airport.

In recent years, increasing demand for commercial air travel has heightened the need to improve the capacity and efficiency of UK airports. This is absolutely essential to meet the Government’s commitment to maintain the UK’s aviation hub status. In our aviation policy framework published last year, we recognised the crucial role that regional airports play in providing airport capacity and the vital contribution they can make to the growth of their local economies. Indeed, I like to refer to them as local international airports, rather than just regional airports. The Government are therefore determined that the UK continues to benefit from the services that regional airports offer. We welcome the ambition many of them are showing through investing in their infrastructure, increasing accessibility and facilitating more services to more destinations. I have also been impressed by the efforts many airports are making to diversify into different activities, such as aircraft maintenance, repair and overhaul, business aviation and other support services, and providing space for other, non-aviation businesses.

I am aware of Blackpool airport’s proud history, which goes back as far as 1909 when the UK’s first official public flying meeting took place there. In the 1930s, the pioneering Railway Air Services operated commercial schedules to the Isle of Man, Manchester and Liverpool, with connections to other UK destinations including London. As RAF Squires Gate, the aerodrome had an illustrious history. During the second world war it served as a base for operational RAF coastal command squadrons patrolling the Irish sea and eastern Atlantic, and for specialist reconnaissance and technical training schools. The Ministry of Aircraft Production set up a huge shadow aircraft factory close to the aerodrome for Vickers Armstrong to manufacture and test more than 3,500 Wellington bombers between 1940 and 1945. Airline services resumed from 1946 and the airport enjoyed relatively steady commercial air operations for many years, allowing a lot of people in the Lancashire area to experience their very first foreign holiday. However, services and passenger numbers declined steadily from the 1970s onwards, as charter operators moved to other, larger airports.

In recent years, Blackpool airport has struggled to attract and retain consistent air passenger services. However, like many other smaller airports, Blackpool airport has more strings to its bow, and also serves as an important base for a number of aviation-related support and maintenance businesses, as well as flying training schools and business and general aviation operators. In fact, Blackpool airport played a role in the 1983 general election campaign, when Prime Minister Margaret Thatcher was spirited to the Fylde coast via the airport for one of her final election rallies. I was therefore very sorry to learn in August that Blackpool airport’s owner, Balfour Beatty, was putting the airport up for sale and that it would close in mid-October if no buyer came forward. Unfortunately, as we know, no buyer was forthcoming, and the airport’s owner issued a statement on 7 October confirming that the closure would go ahead on 15 October. The final commercial flight departed for the Isle of Man at 5 pm that day.

I fully recognise concerns in the area about the impact that the airport’s closure could have on the local and regional economy, and the reduction in travel choice and opportunity. However, in the first instance this is essentially a commercial matter for the airport’s owner. As hon. Members will understand, airports in the UK and the airlines that use them operate in a competitive, commercial environment. The UK’s aviation sector is overwhelmingly in the private sector, and this Government support competition as an effective way to meet the interests of air passengers and other users. It is for individual airports to take decisions on commercial matters, which will of course include questions of services and future viability. Equally, airlines take similar commercial decisions in regard to the routes that they operate and from which airports. It is not open to the Government to compel airports or airlines to operate services.

I know, however, that my hon. Friend the Member for Fylde and other parliamentary colleagues from the area, from whom we have heard tonight, are involved in ongoing discussions to secure the future of the site and retain an aviation presence there, as well as working with local partners, including Blackpool council, to explore the potential for turning the airport into an enterprise zone. The airport continues to work with general aviation businesses and others based on the airport site to discuss options for them to remain there in the longer term. I warmly commend all those collaborative efforts and very much hope that a resolution can be achieved that will maintain aviation activity at the airport.

Taking a wider view, the Government remain committed to rebalancing the economy and supporting regional development. Hon. Members will know that Lancashire’s local enterprise partnership was successful earlier this year in securing over £230 million from the Government’s local growth fund to support economic growth in the area. Let me restate our determination that the UK should continue to benefit from the contribution that regional airports can offer. The Chancellor recently announced that applications will now be allowed for start-up aid for new air routes from UK regional airports. To be eligible, airports must handle fewer than 5 million passengers per annum and meet new European Union state aid guidelines. The Department for Transport is working with the Treasury to determine how the funding process will operate in practice. We hope to be in a position to announce routes that can be funded in the new year.

As hon. Members will also be aware, the independent Airports Commission, chaired by Sir Howard Davies, has been established to identify and recommend options to maintain this country’s status as an international hub for aviation. In preparing its interim report, the commission undertook a detailed assessment of the UK’s future aviation demand and connectivity requirements. The interim report, published last December, details a shortlist of long-term options for further study to increase airport capacity, along with recommendations for the short term to make the best use of our existing infrastructure. The commission also recognised that, in the short and medium term, the Government do not have effective levers to redistribute traffic to less congested airports, even if it were desirable to do so. All the shortlisted long-term options are now the subject of more detailed analysis and consultation by the commission. To protect the integrity of the process, the Government will not comment on any of the shortlisted options.

I was asked a number of questions. First, I was asked what the Government can do to step in and prevent the liquidator from selling off the airport’s fixtures and fittings. I can report that the Insolvency Service has confirmed that Blackpool Airport Ltd entered creditors’ voluntary liquidation proceedings on 7 October and that a liquidator was appointed on 16 October. Matters concerning the disposal of the airport’s assets are for the airport’s owner and the appointed liquidator, and we heard that it would be six to eight weeks before a sale could proceed. The liquidator has a duty to ensure that the maximum levels of realisation from sales of assets are achieved to ensure the best returns to the creditors. In the meantime, there is an important window to explore other aviation-related options.

We heard about other forms of aviation, particularly helicopters. I can comment on the North West Air Ambulance helicopter operations from Blackpool airport. The North West Air Ambulance charity has confirmed that its service will not be affected by the airport’s closure. The charity has confirmed publicly that whatever happens, it has a number of measures in place and that emergency services will not be affected. The airport continues, too, to work with other aviation support businesses and general aviation operators based at the airport site to discuss options for them to operate from the site in the longer term. I know that Bond Offshore Helicopters was mentioned in the debate.

I appreciate that the hon. Member for Blackpool South (Mr Marsden) is the shadow aviation Minister, and I particularly value his contribution through correspondence. He is speaking as a Back Bencher in this debate, but I understand how important this issue is for him—not only locally as the local Member of Parliament, but nationally in respect of our overall regional airport policy. When it comes to bidders, it is important to make the best use of all the land on the site and to capitalise on the opportunity. The hon. Gentleman asked me to be a messenger to the Government, but I do not think he needs me to pass on the message, as I am sure his contribution to tonight’s debate will have gone out far and wide to all interested parties.

My hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) rightly drew attention to the fact that passenger numbers, freight numbers and aircraft movements have declined and mentioned the success of Humberside in that regard. Yes, Humberside has opportunities for oil and gas, but one of the biggest problems for Blackpool by comparison with Humberside is that it is not quite so close to an airport that is as strong and competitive. My hon. Friend mentioned the fact that a KLM route from Schiphol will benefit to an extent from the distortion of air passenger duty, but I must point out that any questions about APD should properly be directed to the Chancellor of the Exchequer. It is interesting to note that what precipitated the problems at Manston was in many cases due to the fact that the KLM service was withdrawn.

I thank my hon. Friend the Member for Fylde once again for securing this debate. I underline the fact that the Government are committed to improving the capacity and the efficiency of UK airports to maintain the UK’s aviation hub status. Although fully aware of the importance of regional airports in this, the Government are unable to intervene directly in Blackpool’s case, as it is ultimately the responsibility of the airport’s owner to determine whether or not it is commercially viable.

Question put and agreed to.