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Aviation Industry — [Sir Edward Leigh in the Chair]
18 November 2020
Lead MP
Chris Grayling
Epsom and Ewell
Con
Responding Minister
Robert Courts
Tags
Economy
Word Count: 14595
Other Contributors: 18
At a Glance
Chris Grayling raised concerns about aviation industry — [sir edward leigh in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
I urge the Government to prioritise the reopening of key economic routes by introducing airport testing and accepting a risk-based approach for low-risk destinations. The current UK rules are too restrictive, and other countries have successfully implemented less stringent measures.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The aviation industry employs hundreds of thousands of people around the country and is a vital part of regional economies. However, due to the pandemic, there are only three aircraft in the air over the south of England at any given time, leading to job losses across airlines, airport services companies, and suppliers to the industry.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Carmichael highlighted the importance of aviation for his island constituency, emphasizing the need for reliable air services to support economic development. He expressed concern over Loganair's future amid high fixed costs and low bookings. He also criticized the Scottish Government's decision to centralize air traffic control officers in Inverness.
Edward Leigh
Con
Gainsborough
The Chair imposed a four-minute limit for contributions to ensure that many people can participate in the debate. Thanked the Chair for mentioning everybody who spoke in the debate, noting it is a good habit. Can you give some time for the right hon. Member for Epsom and Ewell to sum up?
Gavin Newlands
SNP
Paisley and Renfrewshire North
The UK Government have abandoned the aviation sector to its fate, not delivering on promises made at the start of the pandemic. The Scottish Government has done more with limited powers than what the UK Government has done with their broader legal and financial powers. Scrapping VAT retail export scheme and airside extra-statutory concession scheme is detrimental to the industry's recovery. Passenger numbers have declined significantly, threatening connectivity for regional airports and rural communities. Fire-and-rehire practices by companies such as Menzies Aviation and British Airways are disreputable and should be addressed.
Grahame Morris
Lab
Easington
I am concerned about the abhorrent employment practices, such as 'fire and rehire', adopted by airlines during the pandemic. British Airways threatened to fire all 42,000 staff members and rehire only around 30,000 on reduced terms which resulted in wage cuts of up to 75%. The Minister must clarify whether he agrees that the Government should minimize job losses while protecting pay and employment rights.
Henry Smith
Con
Crawley
Gatwick airport in Henry Smith's constituency has seen a 61% reduction in business since the pandemic began, with 40% job losses. He calls for testing regimes instead of quarantine to compete internationally and advocates reducing or scrapping air passenger duty.
Huw Merriman
Con
Bexhill and Battle
The aviation industry contributes £22 billion to the UK economy, employing 230,000 people. The sector needs a testing mechanism for passengers to fly with confidence, as pent-up demand is evident from an increase in bookings when the air bridge was opened to the Canaries by 112%. Other countries have successfully implemented such mechanisms, but the UK has not.
Jack Lopresti
Con
Filton and Bradley Stoke
Lopresti focused on aircraft manufacturing, noting that his constituency hosts Filton, a significant part of the UK's Aerospace Centre of Excellence. He detailed how the sector supports 17,500 jobs in the region and contributes £1 billion annually. Lopresti warned about the challenges facing the industry due to the pandemic, including production cuts and delayed demand recovery.
Hayes and Harlington
McDonnell highlighted the impact of the pandemic on workers at Heathrow Airport in his constituency. He criticized companies for using the crisis as an opportunity to reduce wages and withdraw benefits rather than negotiating temporary measures with trade unions. He called for a co-ordinated strategy from the Government, including immediate support for aviation communities and investment in west London's economy.
Mike Kane
Lab
Wythenshawe and Sale East
The MP expressed concern about the drastic reduction in passenger numbers due to the pandemic, projecting that UK airports could lose at least £4 billion by the end of the year. He highlighted job losses across various airlines and airports, stressing the need for a coordinated approach from different government departments. I withdraw my request to intervene.
I ask for regional airports to be assisted with business rates and for the Minister to continue engaging the Secretary of State for Health and Social Care on airport testing requirements. Doncaster Sheffield Airport, which has recently seen an expansion by Wizz Air, faces significant challenges due to lockdown measures.
Paul Girvan
DUP
Lagan Valley
Northern Ireland relies heavily on its aviation manufacturing industry, which is suffering due to a reduction in flights and difficulty connecting with London. Paul Girvan highlights the importance of air passenger duty reform, noting that removing APD could save 130 routes and generate £4 GDP for every £1 spent.
Paul Holmes
Con
Hamble Valley
Mr Holmes discussed the challenges faced by Southampton airport due to the pandemic, including reduced flight capacity and pending runway extension. He called for quicker implementation of testing regimes and relief from business rates to help airports survive.
Sam Tarry
Lab
Ilford South
The aviation sector contributes £28 billion to the economy and employs 230,000 people. Despite the furlough scheme, there have been waves of redundancies, including 13,000 at British Airways. The Transport Committee report called BA's actions a 'national disgrace'. Options such as prioritising loans or taking stakes in companies should be considered to ensure better treatment of staff and reduction in carbon dioxide emissions.
Sammy Wilson
DUP
East Antrim
I highlight the need for a confidence-boosting strategy in aviation, suggesting temporary reductions in air passenger duty and questioning the removal of duty-free shopping. The industry requires specific attention to overcome its current difficulties.
Saqib Bhatti
Con
Meriden and Solihull East
He highlighted the importance of Birmingham airport, an economic asset responsible for £1.5 billion in gross value added and 31,000 jobs pre-covid. He emphasized the need to find innovative solutions to support airports amidst reduced passenger numbers due to coronavirus.
Sarah Owen
Lab
Luton North
She expressed concern about the impact of coronavirus and lack of sector-specific support on Luton's aviation industry, which employs thousands. She criticized the Government's response as inadequate and called for specific actions such as discussions with companies to save jobs.
Seema Malhotra
Lab Co-op
Feltham and Heston
Ms Malhotra highlighted the urgent need for a plan to support aviation, including passenger testing to reduce quarantine requirements. She called for targeted job support schemes to prevent further redundancies and urged more investment in decarbonisation initiatives.
Jupp discussed the severe impact of reduced flights at Exeter airport due to the pandemic, noting that passenger numbers have dropped by 95%. He called for reforming air passenger duty and scrapping business rates for airports for a year, emphasizing the importance of regional aviation in supporting local economies.
Government Response
Robert Courts
Government Response
Acknowledged the contributions made by MPs and thanked them for their passion towards aviation. Highlighted the support provided by the government during challenging times, including a £150 million project to upgrade Gatwick airport rail station. Emphasized the importance of the aviation sector's recovery post-pandemic, noting that it contributes £22 billion to GDP annually and supports half a million jobs. Mentioned that the Government has given an unprecedented package of cross-economy support measures including the Bank of England's covid corporate financing facility, which enabled businesses across the industry to draw down £1.8 billion by September 2020 and around £2.5 billion to £3 billion through the job retention scheme.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.