Asked by: Sarah Owen (Labour - Luton North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, pursuant to the Answer of 15 June 2020 to Question 57393, on Airlines: Coronavirus, whether an airline company has reached the point of all avenues being exhausted (a) before or (b) after proposing a high volume of redundancies.
Answered by Kelly Tolhurst
The Department for Transport is in regular contact with airlines, airports and unions to understand the impact that COVID-19 is having on the sector and its workers.
We expect companies to pursue all possible actions to preserve cash and maximise liquidity, including engaging with shareholders, lenders and the markets, and utilising all available assets and facilities. However, we do not comment on discussions held with individual companies, as this information is commercially sensitive.
Asked by: Sarah Owen (Labour - Luton North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, pursuant to the Answer of 11 June to Question 56177 on Travel: coronavirus, on how many occasions he has discussed the 14-day quarantine rule for entering the UK with the Home Secretary.
Answered by Kelly Tolhurst
I refer the hon. Member to the reply previously given on 11 June 2020, PQ UIN 56177.
Asked by: Sarah Owen (Labour - Luton North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, pursuant to the Answer of 9 June 2020 to Question 55045, how the Government plans to define value for money for taxpayers when assessing whether to make interventions in the airline industry in the event that airlines find themselves facing financial difficulties as a result of covid-19 outbreak.
Answered by Kelly Tolhurst
The Government has been clear that we will only consider bespoke support for businesses once all other avenues have been exhausted, including the economy-wide support announced by the Chancellor.
In considering whether there is a case for providing additional support, we would look at factors such as whether the business makes a material contribution to the economic activity of the UK and the equitable and fair treatment across businesses in the sector. Any support that is offered will follow the government guidance on Managing Public Money.
Asked by: Sarah Owen (Labour - Luton North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what recent discussions he has had with the Home Secretary on the 14-day quarantine rule for people entering the UK during the covid-19 outbreak.
Answered by Kelly Tolhurst
The Secretary of State has held extensive discussions about self-isolation measures with the Home Secretary.
Asked by: Sarah Owen (Labour - Luton North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what discussions his Department has had with (a) easyJet, (b) British Airways and (c) other major UK airlines on the 14-day quarantine period for people entering the UK during the covid-19 outbreak.
Answered by Kelly Tolhurst
The Department for Transport has engaged with the aviation sector on this issue and will continue to do so in the coming weeks. This includes working with senior representatives from the aviation industry as part of the Aviation Expert Steering Group. This group serves as the working group for the International Aviation Taskforce – one of the five sectoral taskforces announced by the Government on 13 May.
In addition, the Department has co-chaired with Border Force three implementation groups with the aviation industry to ensure that the industry is aware of how the new regulations on self-isolation will be implemented.
Asked by: Sarah Owen (Labour - Luton North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, pursuant to the Answer of 4 June 2020 to Question 52534, what discussions his Department has had with representatives from airlines on Government support to alleviate financial difficulties that have arisen due to the covid-19 outbreak.
Answered by Kelly Tolhurst
The Government recognises the challenging times facing the aviation sector as a result of COVID-19, and has been engaging regularly with airlines throughout the UK to understand the impact that COVID-19 is having on their financial position.
Businesses across the industry, including airlines, have been able to draw on the unprecedented package of economic measures put in place during this time. This includes a Bank of England scheme for firms to raise capital, two business interruption loan guarantee schemes for different sizes of business, Time to Pay flexibilities with tax bills, financial support for employees and VAT deferrals.
If airlines find themselves in trouble as a result of coronavirus even following the Government’s cross-economy wage and financial interventions, the Transport Secretary and Chancellor have confirmed that the Government is prepared to enter discussions with individual companies seeking bespoke support as a last resort, having exhausted all other options. Any intervention would need to represent value for money for taxpayers.
Airlines across the country are eligible and have accessed these schemes which has protected a substantial number of jobs across the industry. We do not comment on the commercial or financial matters of private firms and are therefore it would be inappropriate to detail individual discussions.
Asked by: Sarah Owen (Labour - Luton North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, pursuant to the Answer of 4 June 2020 to Question 52534, what steps the Government has taken to publicise the availability of bespoke packages of support for airlines facing financial difficulties due to the covid-19 outbreak.
Answered by Kelly Tolhurst
The Government recognises the challenging times facing the aviation sector as a result of COVID-19, and has been meeting with airlines based in the UK on a regular basis to understand the impact that COVID-19 is having on their financial position. These meetings have also been used to inform and advise airlines on the support that can be potentially available to them if applicable.
Businesses across the industry, including airlines, have been able to draw on the unprecedented package of economic measures put in place during this time. This includes a Bank of England scheme for firms to raise capital, two business interruption loan guarantee schemes for different sizes of business, Time to Pay flexibilities with tax bills, financial support for employees and VAT deferrals.
The Chancellor wrote to airlines and airports across the sector 24th March. As that letter outlined if airlines find themselves in trouble as a result of coronavirus even following the Government’s cross-economy wage and financial interventions, the Transport Secretary and Chancellor have confirmed that the Government is prepared to enter discussions with individual companies seeking bespoke support, but only as a last resort, having exhausted all other options. Any intervention would need to represent value for money for taxpayers.
Asked by: Sarah Owen (Labour - Luton North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what meetings his Department has had with Easyjet on its proposed 4,500 job losses; and what plans the Government has to help safeguard the future of those jobs.
Answered by Kelly Tolhurst
It would not be appropriate to comment on individual discussions. However, we recognise that this will be very distressing news for EasyJet employees and their families, and we stand ready to support them.
Our transport systems are critical to support the restart of the wider economy and we continue to work closely with the aviation sector on these restart plans and the longer-term recovery of the sector. Firms can draw upon the unprecedented package of measures, including schemes to raise capital, flexibilities with tax bills, and financial support for employees. If airlines find themselves in trouble because of coronavirus, and have exhausted the measures already available to them, the Government is prepared to enter discussions with individual companies seeking bespoke support as a last resort, having exhausted all other options.??Any intervention would need to represent value for money for taxpayers.
Asked by: Sarah Owen (Labour - Luton North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what plans the Government has to support the aviation industry and its workforce during (a) the phases of the covid-19 lockdown restrictions easing and (b) a potential second wave of the outbreak; and whether those plans include (i) an extended job retention scheme for workers in the aviation industry and (ii) ensuring pilots have access to simulators or flight time to fulfil the three take offs and landings in 90 days requirements.
Answered by Kelly Tolhurst
Our transport systems are critical to support the restart of the wider economy and we continue to work closely with the aviation sector through the phasing of lockdown restrictions and beyond, on these restart plans and the longer-term recovery of the sector. In addition, the International Aviation Taskforce has been set up to support the development of guidelines for safely restarting the sector that will take place, when the science allows. The Taskforce will be publishing guidance for passengers and operators shortly.
The Chancellor recently extended the Job Retention Scheme until the end of October, bringing more flexibility to the scheme to ensure those who are able to work can do so, while remaining amongst the most generous employee schemes in the world. As well as financial support for employees, firms can also draw upon the unprecedented package of measures to protect jobs, including: schemes to raise capital and flexibilities with tax bills.
The Civil Aviation Authority is working with airlines and airports to provide flexibility within the regulatory framework to help manage and mitigate Covid-19 impacts where this is appropriate, including on fulfilment of regulatory requirements such as Pilot’s flight time.
Asked by: Sarah Owen (Labour - Luton North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what discussions the Government has had with (a) commercial airline operators and (b) travel insurance providers on providing timely compensation to repatriated UK travellers who have had flights cancelled as a result of the covid-19 pandemic.
Answered by Kelly Tolhurst
The Department for Transport is in regular conversation with UK airlines and is working with the sector, the regulator and consumer groups to help ensure airlines deliver on their commitments. The Government’s position is clear - if a customer asks for a refund, that refund needs to be paid.