Asked by: Fleur Anderson (Labour - Putney)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what recent discussions he has had with representatives of British Airways on financial support for (a) cabin crew and (b) pilots.
Answered by Robert Courts
Ministers and officials have engaged extensively with the aviation industry throughout the pandemic and continue to do so. In total, we estimate that by the end of September 2021 the air transport sector (airlines, airports and related services) will have benefited from around £7bn of Government support since the start of the pandemic. This included the Coronavirus Job Retention Scheme (CJRS), Covid Corporate Financing Facility and Coronavirus Large Business Interruption Scheme.
On 3 March 2021, the Government extended the CJRS until 30 September 2021 and furloughed employees will continue to receive 80% (up to £2,500) of their current salary with the Government currently contributing 60% of this.
British Airways reported that it expected to receive a total of £279m in relief under the CJRS for the 12 months to the end of December 2020 and had applied the CJRS to more than 30,000 cabin crew and ground-based employees; and it has continued to make use of the CJRS in 2021.
Asked by: Lord Foulkes of Cumnock (Labour - Life peer)
Question to the Department for Transport:
To ask Her Majesty's Government what proportion of the financial support provided to airports during the COVID-19 pandemic was issued through (1) loans, and (2) grants.
Answered by Baroness Vere of Norbiton
We estimate that by the end of April 2021 the air transport sector (airlines, airports and related services) will have benefitted from around £7bn of government support since the start of the pandemic.
This includes more than £2bn through the Bank of England’s Covid Corporate Financing Facility (CCFF) and we estimate that the air transport sector will have received around £1bn in support through the Coronavirus Job Retention Scheme (CJRS) up to the end of April 2021.
We have guaranteed loans to airlines through the Coronavirus Large Business Interruption Loan Scheme (£25m) and we expect to pay out around £80m in grants to commercial airports and ground handlers by the end of the financial year, through the Airport and Ground Operations Support Scheme (AGOSS).
Further cross-economy measures are also available to businesses in the aviation sector. Since the start of this year (2021) £3.4bn of loans have been partially supported through export development guarantees. This includes a £1.4bn loan facility for easyJet, and a £2bn loan facility for British Airways, which will be largely guaranteed by UK Export Finance.
The Chancellor has announced the renewal of the scheme to help airports and ground operators with their fixed costs, with additional grants of up to £4m between April and September, an extension of furlough payments to September, and an online jobs market matching aviation employees with thousands of vacancies.
Asked by: Lord Foulkes of Cumnock (Labour - Life peer)
Question to the Department for Transport:
To ask Her Majesty's Government how much, in total, they have provided in (1) grants, and (2) loans, to the aviation sector during the COVID-19 pandemic.
Answered by Baroness Vere of Norbiton
We estimate that by the end of April 2021 the air transport sector (airlines, airports and related services) will have benefitted from around £7bn of government support since the start of the pandemic.
This includes more than £2bn through the Bank of England’s Covid Corporate Financing Facility (CCFF) and we estimate that the air transport sector will have received around £1bn in support through the Coronavirus Job Retention Scheme (CJRS) up to the end of April 2021.
We have guaranteed loans to airlines through the Coronavirus Large Business Interruption Loan Scheme (£25m) and we expect to pay out around £80m in grants to commercial airports and ground handlers by the end of the financial year, through the Airport and Ground Operations Support Scheme (AGOSS).
Further cross-economy measures are also available to businesses in the aviation sector. Since the start of this year (2021) £3.4bn of loans have been partially supported through export development guarantees. This includes a £1.4bn loan facility for easyJet, and a £2bn loan facility for British Airways, which will be largely guaranteed by UK Export Finance.
The Chancellor has announced the renewal of the scheme to help airports and ground operators with their fixed costs, with additional grants of up to £4m between April and September, an extension of furlough payments to September, and an online jobs market matching aviation employees with thousands of vacancies.
Asked by: Lord Foulkes of Cumnock (Labour - Life peer)
Question to the Department for Transport:
To ask Her Majesty's Government what proportion of the financial support provided to the aviation sector as a result of the COVID-19 pandemic was allocated to (1) airports, (2) airlines, and (3) other companies in that sector.
Answered by Baroness Vere of Norbiton
We estimate that by the end of April 2021 the air transport sector (airlines, airports and related services) will have benefitted from around £7bn of government support since the start of the pandemic.
This includes more than £2bn through the Bank of England’s Covid Corporate Financing Facility (CCFF) and we estimate that the air transport sector will have received around £1bn in support through the Coronavirus Job Retention Scheme (CJRS) up to the end of April 2021.
We have guaranteed loans to airlines through the Coronavirus Large Business Interruption Loan Scheme (£25m) and we expect to pay out around £80m in grants to commercial airports and ground handlers by the end of the financial year, through the Airport and Ground Operations Support Scheme (AGOSS).
Further cross-economy measures are also available to businesses in the aviation sector. Since the start of this year (2021) £3.4bn of loans have been partially supported through export development guarantees. This includes a £1.4bn loan facility for easyJet, and a £2bn loan facility for British Airways, which will be largely guaranteed by UK Export Finance.
The Chancellor has announced the renewal of the scheme to help airports and ground operators with their fixed costs, with additional grants of up to £4m between April and September, an extension of furlough payments to September, and an online jobs market matching aviation employees with thousands of vacancies.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central and West)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what recent discussions he has had with British Airways about job retention.
Answered by Kelly Tolhurst
The Department for Transport is in close contact with the aviation sector, ensuring that the Government is kept fully aware of the latest developments with all firms and to understand where additional policy measures could address specific industry issues.
British Airways is able to draw upon the unprecedented package of measures announced by the Chancellor to protect jobs and incomes, including the Coronavirus Job Retention Scheme covering 80% of furloughed employees’ usual monthly wage costs, up to £2,500 a month, alongside the associated Employer National Insurance contributions and pension contributions.
I and the Secretary of the State have met with both British Airways and IAG, and I continue to encourage BA and the unions to engage constructively with each other.
Asked by: Baroness Harman (Labour - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps he plans to take to support British Airways employees that are at risk of redundancy; and what the timeframe is for the provision of that support.
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. However, we do not comment on discussions held with individual companies, as this information is commercially sensitive.
The Government recognises the challenging times facing the aviation sector as a result of COVID-19. The aviation sector is important to the UK economy and will be able to draw upon the unprecedented package of measures announced by the Chancellor and on May 12, the Government announced that the Coronavirus Job Retention scheme would be extended for four months, until the end of October. Until the end of July, there will be no change. From August to October, the scheme will continue for all sectors and regions of the UK, but with greater flexibility to support the transition back to work.
In response to COVID-19 the Department for Work and Pensions have established an alternative service to their usual face to face offer. People will be able to access redundancy help and job search advice on the Department’s new Job Help campaign website. There’s also information on Gov.uk and updated information packs provided to employers to help them signpost employees to the support that is available.
Asked by: Henry Smith (Conservative - Crawley)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment he has made of the effect of covid-19 on employment within the UK aviation sector and associated supply chain.
Answered by Kelly Tolhurst
Before the impact of COVID-19, the UK aviation sector directly employed around 230,000 jobs (130,000 in air transport and 100,000 in aerospace). Following the sharp contraction in aviation demand as a result of the COVID-19 pandemic, employment in the UK aviation sector has been significantly impacted.
Workers in the aviation sector are being supported by the unprecedented economic measures we have put in place, including the Coronavirus Job Retention Scheme. At least 50,000 airline and aerospace employees have been furloughed using the scheme. However, British Airways, Virgin Atlantic, easyJet, Rolls Royce and John Menzies are among UK aviation companies that have announced plans for tens of thousands of redundancies.
Government is continuing to monitor the impact on employment within the UK aviation sector, and as we now begin to re-open the economy, it is right that state support is slowly reduced and the focus shifts to getting furloughed employees back to work.
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps is he taking to ensure that British Airways does not misuse the Coronavirus Job Retention Scheme by terminating staff contracts and subsequently rehiring a new workforce with inferior pay and conditions.
Answered by Paul Scully
During this difficult time, employers should act responsibly and only use the Job Retention Scheme to protect jobs. We would urge employers not to use the Job Retention Scheme to make someone redundant on less favourable terms than they would otherwise have received.
Terms and conditions of employment are for negotiation and agreement between employers and employees (or their representatives). Provided they do not discriminate unlawfully, for example on grounds of race, sex or disability, employers are free to offer the terms and conditions of employment which best suit their business needs.
Once agreed, however, they form a legally binding contract of employment. While it is always open to either party to seek to renegotiate the terms of the contract, if the employer changes any of the terms without the employee’s agreement, the employee may be entitled to seek legal redress.
Any redundancy process should be fair and reasonable, with appropriate equalities considerations. Employees can appeal to their employer if they feel they have been unfairly selected or they may be able to make a claim to an employment tribunal for unfair dismissal.
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether his Department has had discussions with representatives of British Airways on postponing its planned redundancies following the Government's announcement of an extension to the Coronavirus Job Retention Scheme.
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. However, we do not comment on discussions held with individual companies, as this information is commercially sensitive.
Asked by: Nick Fletcher (Conservative - Don Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has taken to encourage the International Airlines Group to make use of the Coronavirus Job Retention Scheme to help prevent British Airways staff from being made redundant.
Answered by Jesse Norman - Shadow Leader of the House of Commons
All firms affected by coronavirus are encouraged to treat their employees fairly and carefully. The Coronavirus Job Retention Scheme is already helping firms keep millions of people in employment by covering most wage costs. While there is no obligation for employers to take up the scheme, the scheme is open to all UK employers provided they have created and started a PAYE payroll scheme; enrolled for PAYE online; have a UK bank account; and that HMRC have received an RTI submission notifying payment in respect of that employee on or before 19 March 2020.