Flybe — House of Lords, 2020-03-05
Topic: Transportation
Charlotte Vere (Conservative, Centre-right): My Lords, with permission, I will now repeat a Statement made in the House of Commons by the Minister for Aviation earlier today. The Statement is as follows: "With your permission, Mr Speaker, I would like to make a Statement about the collapse of Flybe. In the early hours of this morning, Flybe ceased trading. This was a commercial decision by the company, and Flybe has filed for insolvency. UK airports handled 9.5 million Flybe passengers in 2018, with 80% of these travelling within the UK. An estimated 15,000 passengers were due to fly today, so our immediate priority is to support passengers travelling home and employees who have lost their jobs. Flybe has had a challenging year in terms of its financial performance, with a decline in bookings and increased competition Levelling up connectivity across our regions and nations is a top priority for this Government. We are driving forward HS2 and Northern Powerhouse Rail, we have announced a £5 billion funding package for bus and cycle links, and we are investing £6.6 billion to improve the condition of local highway networks between 2015 and 2021. We are undertaking a review of regional connectivity to ensure that the UK has the domestic transport connections that local communities rely on, including regional airports. The Treasury is also reviewing air passenger duty—APD—to ensure that regional connectivity is supported while meeting the UK’s climate change commitments to meet net zero by 2050 These measures featured in conversations with Flybe back in January, and in turn it agreed to continue operating. Since then, we have been working tirelessly to explore multiple options with Flybe’s shareholders to find a solution. Flybe outlined that problems with its business have been compounded by the outbreak of coronavirus, which in the last few days has resulted in a significant impact on demand. The directors therefore decided that it was not viable to keep Flybe operating. Unfortunately, in a competitive market companies do fail. It is not the role of government to prop them up Given the time of year, the nature of Flybe’s business and fleet and the routes it flies, sufficient alternative transport arrangements should be available, with other airlines or by road and rail. The number of passengers abroad is small and is further reduced as a result of coronavirus. For those passengers who are abroad, there is sufficient capacity on other commercial airlines to return to the UK. The Civil Aviation Authority and the Secretary of State are encouraging these airlines to offer rescue fares, and this is already happening. I would like to thank those, including easyJet, which has today announced that it will offer Flybe passengers a dedicated rescue fare up to the end of May We are working with bus and rail operators to support Flybe passengers in getting to their destination, and I am extremely grateful that the Rail Delivery Group has this morning confirmed that all operators are offering free travel to Flybe staff and passengers for a week, free of charge. For passengers due to fly with Flybe in the next few days, I would ask that they do not turn up at the airport. They should instead please look at the website set up by the Civil Aviation Authority and talk to their travel agents, travel insurance providers and credit card companies. For those who do arrive at UK airports today, we are making government representatives available to offer support and provide information to passengers affected I would like to express my sincere sympathy to those who have lost their jobs as a result of this failure. This will include crew, engineers, technicians, staff at Flybe headquarters in Exeter, and others. We understand that this must be a very worrying time for workers and their families. The Department for Work and Pensions stands ready to support anyone affected by the closure with its rapid response service offer. This will be available to all those affected through local Jobcentre Plus outlets. Additionally, in the event of any redundancies, there are special arrangements for employees who are owed redundancy pay and other payments by their insolvent employer. The redundancy payments service in the Insolvency Service can pay certain amounts owed to the former employees from the National Insurance Fund. I will work with my ministerial colleagues to ensure that any redundancy payments are paid to affected employees as soon as possible We recognise the impact that this will have on UK airports, particularly those which have large-scale Flybe operations. Government stands ready to support this sector, and I have full confidence that it will respond as effectively as it always has. We are urgently working with industry to identify opportunities to fill routes and I have spoken to airlines today to emphasise this. Globally, aviation is facing challenges due to the impact of coronavirus. The Government are well prepared for this, and as the wider economic picture becomes clearer, the Chancellor has said that he stands ready to announce further support where needed. I will be chairing a round table with members of the aviation industry next week to discuss the issues presented by coronavirus I would like to take this opportunity to thank passengers for their patience and make known my appreciation for the work undertaken by everyone who has again stepped up to ensure that passengers and local communities are supported. We will continue to work across government to ensure that both passengers and staff are able to access the information and services they require at this sad and challenging time." My Lords, that concludes the Statement.