Asked by: Ben Bradshaw (Labour - Exeter)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment his Department has made of the economic effect of the downturn in the aviation industry as a result of the covid-19 pandemic.
Answered by Robert Courts
Before Covid-19, aviation directly contributed at least £22 billion to GDP to the UK economy and supported around half a million jobs. This included the air transport and aerospace sectors, as well as the wider supply chain. Since the outbreak of Covid-19, the aviation sector has been one of the worst affected sectors in the UK. Passenger numbers at UK airports fell by 99% at the height of the pandemic. Overall volumes of flight traffic in the UK is currently around 80% below equivalent 2019 levels. The air transport sector’s contribution to the UK economy dropped by 74% in 2020 compared to 2019 and tens of thousands of redundancy notifications have been made. In addition to the direct impact to the UK air transport sector, the wider supply-chain and economy has also been adversely impacted by the severe reduction in air passenger demand, jobs and air connectivity, with impacts on consumer spending and investment across the rest of the economy.
The Department recognises the severe impact the COVID-19 pandemic has had on travel, and work continues to understand how best the industry can be supported at this time. The Government is working on a strategic framework for the recovery of the sector. It will explore the return to growth of the aviation sector, and will include consideration of workforce and skills, regional connectivity, noise, innovation and regulation, and consumer issues.
Aviation businesses have access to the unprecedented economic support package that the Chancellor has put in place to help businesses to manage the challenges they are facing as a result of the COVID-19 pandemic.
In addition to this, the Airport and Ground Operations Support Scheme (AGOSS) opened for applications on 29 January to provide support for eligible commercial airports and ground handlers in England.
Through the Global Travel Taskforce, the Government will work closely with the industry to find ways to safely and gradually ease restrictions on international travel. We will set out more detail on this soon.
Asked by: Ben Bradshaw (Labour - Exeter)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what stimulus package he plans to implement to incentivise new air routes being set up by airlines after strict travel restrictions are eased after the covid-19 outbreak.
Answered by Robert Courts
The Department recognises the severe impact the COVID-19 pandemic has had on travel, and work continues to understand how best the industry can be supported at this time. The Government is working on a strategic framework for the recovery of the sector. It will explore the return to growth of the aviation sector, and will include consideration of workforce and skills, regional connectivity, noise, innovation and regulation, and consumer issues.
Aviation businesses have access to the unprecedented economic support package that the Chancellor has put in place to help businesses to manage the challenges they are facing as a result of the COVID-19 pandemic. Firms can continue to draw upon the package of measures announced by the Chancellor, including a Bank of England scheme for firms to raise capital, the Coronavirus Business Interruption Loan Scheme, Time to Pay flexibilities with tax bills, financial support for employees including the Coronavirus Job Retention Scheme and VAT deferrals.
In addition to this, the Airport and Ground Operations Support Scheme (AGOSS) opened for applications on 29 January to provide support for eligible commercial airports and ground handlers in England. It will provide support up to the equivalent of their business rates liabilities or COVID-19 losses – whichever is lower – in the 2020/21 financial year, subject to certain conditions and a cap per claimant of £8m.
Asked by: Ben Bradshaw (Labour - Exeter)
Question to the Department for Transport:
To ask the Secretary of State for Transport, how many meetings he has had with representatives of the aviation industry to discuss the planned aviation recovery package.
Answered by Robert Courts
Since the onset of the pandemic, the Department for Transport has engaged very regularly with the industry, including through both Ministerial meetings and official led sessions.
As announced on 22nd February as part of the roadmap for the phased lifting of restrictions in England, the Secretary of State for Transport will also now lead a successor to the Global Travel Taskforce to develop a framework that can facilitate greater international travel when the time is right, while still managing the risk from imported cases and variants.
The government is also developing a forward looking strategic framework on the recovery of the sector, which we engage with the industry on and will publish later this year.
Asked by: Ben Bradshaw (Labour - Exeter)
Question to the Department for Transport:
To ask the Secretary of State for Transport, with reference to the Office for National Statistics release, Coronavirus and the impact on output in the UK economy: December 2020, published on 12 February 2021, what assessment his Department has made of the benefits to economic recovery of an aviation recovery package.
Answered by Robert Courts
Before Covid-19, aviation directly contributed at least £22 billion GDP to the UK economy and supported around half a million jobs. This included the air transport and aerospace sectors, as well as the wider supply chain. Since the outbreak of Covid-19, the aviation sector has been one of the worst affected sectors in the UK. Passenger numbers at UK airports fell by 99% at the height of the pandemic. Overall volumes of flight traffic in the UK is currently around 80% below equivalent 2019 levels. The air transport sector’s contribution to the UK economy dropped by 75% in 2020 compared to 2019.
The Department recognises the severe impact the Covid-19 pandemic has had on travel, and work continues to understand how best the industry can be supported at this time. The Government is working on a strategic framework for the recovery of the sector. It will explore the return to growth of the aviation sector, and will include consideration of workforce and skills, regional connectivity, noise, innovation and regulation, and consumer issues.
In addition, through the Global Travel Taskforce, the Government will work closely with the industry to find ways to safely and gradually ease restrictions on international travel. We will set out more detail on this soon.
Asked by: Ben Bradshaw (Labour - Exeter)
Question to the Department for Transport:
To ask the Secretary of State for Transport, with reference to ACI Europe’s 2020 Airport Industry Connectivity Report published in December 2020, what assessment his Department has made of the effect of the collapse of the UK’s regional aviation network on the number of (a) air routes lost between the UK and Europe and (b) redundancies among aviation companies in the UK.
Answered by Robert Courts
The Government recognises the challenges faced by the aviation sector at this time. The Government is committed to maintaining critical connectivity and through policies like Public Service Obligations the Department for Transport subsidises routes into London.
The Government is keen to find ways to work closely with the industry to ease restrictions on international travel gradually and sustainably. The Secretary of State for Transport will lead a successor to the Global Travel Taskforce to develop a framework that can facilitate greater travel when the time is right, while still managing the risk from imported cases and variants.
The Government is working on a strategic framework for the recovery of the sector. It will explore the return to growth of the aviation sector, and will include consideration of workforce and skills, regional connectivity, noise, innovation and regulation, and consumer issues.
Asked by: Ben Bradshaw (Labour - Exeter)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps he plans to take to support the aviation sector to increase connectivity to pre-covid-19 pandemic levels.
Answered by Robert Courts
The Department recognises the severe impact the COVID-19 pandemic has had on travel, and work continues to understand how best the industry can be supported at this time. The Government is working on a strategic framework for the recovery of the sector. It will explore the return to growth of the aviation sector, and will include consideration of workforce and skills, regional connectivity, noise, innovation and regulation, and consumer issues.
In addition, through the Global Travel Taskforce, the Government will work closely with the industry to find ways to safely and gradually ease restrictions on international travel. We will set out more detail on this soon.
Asked by: Ben Bradshaw (Labour - Exeter)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what recent assessment his Department has made of the effect of the loss of air routes in Europe on the UK’s ability to trade with Europe.
Answered by Robert Courts
The new UK-EU Trade and Cooperation Agreement (TCA) does not place any restriction on air services between points in the UK and points in the EU, ensuring that UK-EU trade can continue to travel freely by air. Furthermore, the TCA recognises that, at their discretion, EU Member states may permit UK airlines to operate non-scheduled air services within and beyond the EU. The TCA also allows the UK and individual EU Member States to negotiate and agree a bilateral exchange of additional “5th Freedom” all-cargo rights. My officials are engaging closely with EU Member States and with industry on these matters.