Regional Airports

(asked on 20th July 2020) - View Source

Question to the Department for Transport:

To ask the Secretary of State for Transport, what steps he is taking to protect regional connectivity in the UK following the collapse of Flybe.


Answered by
Kelly Tolhurst Portrait
Kelly Tolhurst
This question was answered on 28th July 2020

The Government recognises the impact Flybe’s collapse and the subsequent COVID-19 constraints on services, regional airports, regional economies and connectivity across the UK. We are working with industry to identify where key routes are being re-established and we remain committed to supporting regional connectivity, recognising the importance of maintaining a thriving competitive aviation sector in the UK to deliver this. In May the Government announced a £5.7million funding package of measures,?temporarily supporting?two airlinks,?from Belfast and Londonderry to London,?and associated airport services at City of Derry Airport and Belfast City Airport. The funding package ensured that lifeline connectivity services continued to both Belfast and Londonderry during the height of the Covid-19 pandemic.

The Government has provided an unprecedented package of measures to support the UK economy. These measures are open to businesses across the aviation sector and include a Bank of England scheme for firms to raise capital, Time to Pay flexibilities with tax bills, financial support for employees and VAT deferrals.?In exceptional circumstances, where a viable company has exhausted all options and its failure would disproportionately harm the economy, the Government is prepared to enter discussions with individual companies seeking bespoke support as a last resort. Any intervention would need to represent value for money for taxpayers. We will continue to engage with stakeholders across the sector, including regional airports, to understand the situations they face.

The Chancellor has announced that there will be a consultation on aviation tax reform. As part of this consultation, the Government will consider the case for changing the APD treatment of domestic flights, such as reintroducing a return leg exemption, and for increasing the number of international distance bands

The Government remains committed to supporting regional connectivity across all transport modes, as well as the importance of maintaining a thriving competitive aviation sector in the UK to deliver connectivity. The Department is currently working on a recovery plan for the sector out to 2025. The plan will have a strong focus on regional connectivity and will be developed in consultation with industry for an Autumn publication.

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