Monarch Airlines

Nigel Huddleston Excerpts

Monday 9th October 2017 Commons Chamber

[Chris Grayling]

The hon. Gentleman is right that the airline did not have the assets at the end—airlines today do not own their planes but lease them. One reason it is difficult to continue to operate an airline like this is that the planes are the property of the lease companies, which take them back immediately afterwards. We clearly have to look at whether there is a better way of doing things, but it is not easy.

It would be relatively easy for an airline abroad that is owed money simply to impound an airliner and make it impossible for us to get people back, so these are not straightforward issues. But is the hon. Gentleman really suggesting that we go back to a time when the state owned everything? Do we want the state to own British Airways, easyJet, Jet2 and Thomas Cook? It is nonsense. Even the most socialist Labour Government of the past would never have suggested that the state own every holiday airline. It is a sign of how extreme its policies have become that anybody on its Benches can seriously suggest it.

[Nigel Huddleston (Mid Worcestershire) (Con)]

I congratulate the Government on the speedy response to the Monarch situation and on highlighting the resilience of the UK aviation industry—in the private sector—but the Secretary of State will be aware that there has been confusion over who is ATOL protected. Does he agree that more could be done to communicate the benefits of ATOL membership?

[Chris Grayling]

This is definitely one area we need to look at again. We are already legislating to ensure that people who pay for a flight and hotel separately through an internet organisation can be covered through ATOL insurance. This is an area where we have to do more work. There is, however, a fundamental issue: if we were to put a levy on the cost of an air ticket, we would have to do it on every air ticket in the UK, but many of us on the Conservative Benches get regular representations from regional airports, for example, saying they want air passenger duty cut. This would increase APD, and that is why it is not a straightforward decision, but one we must consider very carefully.