Flybe

Huw Merriman Excerpts

Thursday 5th March 2020 Commons Chamber

[Kelly Tolhurst]

I absolutely agree with the hon. Gentleman in the sadness that he expressed about the loss of jobs for people working for Flybe. When any organisation collapses in this way, it is a sad day for the individuals and communities it affects. I personally am extremely committed to making sure that we, as a Government, are working with colleagues to ensure that those individuals—those staff members—are given the advice and support that they require. In particular, we are very lucky in that we have been engaging with the industry, which is pulling together, and some airlines have said that they are going to prioritise staff from Flybe within their recruitment process. So that is good, and I am hoping to see movement on it as time goes on.

Turning to next steps, with regard to the passengers, obviously everybody is concerned about individuals travelling and how they will get back and move around the country. I reiterate that the majority of Flybe passengers are travelling domestically. As I have outlined, we are working with the airlines on fares and on making sure that the capacity is there. We are also making sure that people can travel on the railways. Of course, those conversations will continue. I am having a meeting later today, so if any MP would like to ask specific questions or get an update on where we are with that information, I would be very grateful if they attended.

I have great respect for the hon. Gentleman, because we have had many debates and discussions on a number of things over the years, but I disagree with his statement that we have sat on our hands. We, as a Government, have absolutely been working hard on this. We have been determined to be able to work with shareholders and work with the company in order to secure Flybe for the future. I must be really clear: we are in this situation today because Flybe shareholders and directors took the decision to place the business in insolvency. This is not where I, as the aviation Minister, wanted to be with regard to Flybe.

I am acutely aware of the impact that this will have on regional airports. The hon. Gentleman is right: we have spoken a lot about regional connectivity. However, we are determined to deliver on our promises to the country—that is, making sure that we are levelling up, and that regional connectivity via those airports remains viable. My Department and officials are working really hard with the airlines and the airports. We have been speaking to them today. I personally have had conversations with the airlines and the airports today. We will be maintaining that work in order to establish replacements and the ability of the industry to pick up some of the routes that are affected. We will look at and discuss some of the ongoing challenges relating to those specific airports.

The 80/20 rule, as the hon. Gentleman will know, is controlled by Airport Coordination Ltd and the European Commission. The European Commission is central to that, as he will understand.

My Department and I, specifically, have been having these conversations. I am in connection with the industry to understand the challenges, and I am taking that forward to do what I can, in my role as a Minister, to ease this burden. I stand here willing to speak to anyone this afternoon and to give people updates as and when I can. I hope that has given some comfort.

[Huw Merriman (Bexhill and Battle) (Con)]

On behalf of the Transport Committee, I want to express sympathy for the passengers inconvenienced and, in particular, the staff, who will be devastated and to whom I hope better things will come. Airline insolvency reform was in the Queen’s Speech. I know that the Minister works hard for business, but I want to press her: when will there be an opportunity to introduce legislation, so that we can help airlines as they either unwind or are able to recover?

[Kelly Tolhurst]

I thank my hon. Friend for his question and note his particular interest as Chair of the Select Committee. He is right that we announced in the Queen’s Speech that we would legislate to enhance the Civil Aviation Authority’s oversight of airlines and its ability to mitigate the impact of failure. I am keen to move that legislation forward as soon as possible, and I am happy to give him further updates.