Civil Aviation (Consumer Protection and Regulatory Reform) Bill [HL]

Lord Young of Cookham Excerpts

Report stage
Monday 13th July 2026 Lords Chamber

[Lord Grayling (Con)]

My Lords, Amendments 13 and 14 are in my name. I declare again my interest as an advisor to AtkinsRéalis in the UK and Ireland.

I have a lot of sympathy with my noble friend on the Front Bench and his comments about various aspects of the Bill; in particular, his comments about the European Union. We should not be looking simply to match the European Union going forward. Indeed, I am very much in favour of having high standards which are not tied to the European Union. Where we can do better—and we should do better—without doing damage to the commercial viability of the UK industry, we should seriously consider taking that kind of step.

While mentioning briefly the international side, in the light of the easyJet takeover proposals, I urge the Minister and his colleagues in the department to use the most muscular approach on this. It would not normally be possible for a UK airline to buy a US one. We need to make sure that the rules and ownership are properly and rigorously enforced. It is urgent to do that.

My two amendments are designed simply to try to put some limitation on the powers that would reside with the Civil Aviation Authority as a result of the Bill. I always envisaged changes upon leaving the European Union as likely to lead to a degree of deregulation and a relaxation of restrictions. The Minister knows that I raised a number of concerns with him in Committee about the extent of the powers to enforce—to enter premises and to impose penalties. These two amendments are designed to put some limitations around the freedoms of the regulator to take enforcement action, so that it does so only in what are genuinely serious situations. I know the Minister is not going to accept these amendments, but I would ask him to give some thought to how this is applied in regulations. Of course, we need a regulator to have the ability to take serious action in a serious situation, but what we do not want is to create a situation where we have undue levels of enforcement on small matters in a way that is overly onerous on the commercial independence and freedom of businesses. We want common sense; these two amendments are designed to apply common sense, and I hope the Minister will be able to take that principle forward.

Finally, I will just comment on my noble friend Lord Young’s amendment, which I am sure he will be speaking to in a moment. Given the impact on the airlines of the failures, when they do happen, in the air traffic control system, I think he makes an important point that is worthy of consideration by the Government.

[Lord Young of Cookham (Con)]

My Lords, I am grateful to my noble friend for that trailer. The reason behind Amendment 65 in my name is what happened on 28 August 2023, when the air traffic system run by NATS failed. There was an independent review which looked into the debacle, and I want to quote very briefly from the report, which said:

“From CAA estimates, over 700,000 passengers were affected by cancellations and delays ascribed to the incident, including approximately 300,000 impacted by flight cancellations, approximately 95,000 by long delays (over three hours) and at least a further 300,000 by shorter delays”.


The review went on to estimate the costs involved:

“Based on the information provided by the airlines most affected by the incident, the Panel has estimated that the costs to airlines were approximately £65m. In addition, substantial costs were incurred by passengers, airports, tour operators, insurers, and others. The Panel was unable to accurately quantify these costs. It is likely that the total cost was in the region of £75m to £100m”.


Noble Lords may be surprised to learn that the company responsible for those losses—NATS—with a turnover of over £1 billion, with profits of over £200 million in each of the last two years, has immunity from those losses. Those losses instead are borne by the airlines, which are tied into a monopoly provider. To my mind, this is a manifest, wholly indefensible position that flies in the face of natural justice, and that is what my amendment seeks to remedy.

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Moved by

[Lord Young of Cookham]

65: After Clause 9, insert the following new Clause—
“Compensation reimbursement scheme for airlinesAfter section 9 of the Transport Act 2000 (power to exclude services from effect of section 8) insert—“9A Reimbursement of passenger compensation payments(1) A licence holder must establish and maintain a scheme for the reimbursement of the costs incurred by airlines in paying compensation to passengers in consequence of a qualifying disruption.(2) For the purposes of this section, a “qualifying disruption” means a cancellation caused by the fault or failure of the licence holder.””

[Lord Young of Cookham (Con)]

My Lords, I will be brief. I am grateful to all those who supported Amendment 65 several hours ago. I am grateful to the Minister for replying and I recognise that his hands were tied. My noble friend Lord Moylan said that the Minister played his trump card by quoting my noble friend Lord Harper, a former Secretary of State, in his defence. I do not know if you can overtrump three times, but three former Secretaries of State took a different view from my noble friend Lord Harper so I would argue that was indeed overtrumped.

The Minister produced three arguments in defence. First, he said safety was pre-eminent and that was why NATS should not be fined. Safety is pre-eminent. It is pre-eminent for the National Health Service, rail, water and power—all those utilities are subject to penalties if they underperform, so there is no conceivable reason for exempting NATS from the same regime. Secondly, the Minister said that any fines on NATS would result in higher charges for the airlines. I could not have been clearer in my speech that any fines should come out of NATS’ profits and not be added to the base for charging for the airlines. The biggest fine it could have had so far was £63 million and its profits for the last two years were £200 million.

Thirdly, the Minister said that my amendment was not appropriate. The Liberal Democrats indicated that they were going to listen to the Minister before deciding what to do. I hope they share my disappointment at the Minister’s reply and that such Lib Dems who may be still in the House will support my amendment. I beg leave to test the opinion of the House.