Air Services (Competition) (Amendment) (EU Exit) Regulations 2019 — House of Lords, 2019-02-12
Topic: Transportation
Malcolm Bruce (Liberal Democrats, Centre to centre-left): My Lords, I also have some questions. One of them arises from the comment made earlier by the noble Lord, Lord Deben, which suggested that some of this is theoretical or even fanciful rather than real, since replacing "EU" with "UK" sounds like a very simple thing. But it is fundamental to the fact that over the years we have developed a UK aviation industry and an EU aviation industry with open skies and much more flexibility in the choice of airlines operating, which could all be about to come to an abrupt halt I have questions in relation to domestic issues as well as international ones if we pass this instrument. For example, on the issue of allocation of slots, clearly at the moment the EU can have some exercise, even on slots operating within the UK and between UK domestic airports. As someone who has flown regularly for over 30 years, using many of the UK’s airports internally and externally, and who has represented an airport, I have been very exercised by slots which come and go, which are offered and then not used and where actual sanctions against the airlines to maintain a service seem to be ineffective Let me slightly bore the House with two of my own experiences from the last two weeks. For the first time in the 30-odd years that I have been commuting from Aberdeen to London, I was unable to get a flight that would get me here on time for the sitting of the House, either this week or next week. This was because British Airways decided not to use its full slots, claiming there is not the demand, despite the fact that every flight is overbooked. Indeed, it is telling us two weeks ahead that there are flights which are no longer available, even for wait-listing, because they are overbooked two weeks in advance, yet it has reduced the slots with no sanctions. Does this regulation have any effect on whether or not that could be done? The Minister will tell me it is a matter for the Civil Aviation Authority. It may well be, but I hope the Government will recognise that it is a matter of public interest if people cannot get the flights they would reasonably expect On the issue of what will happen to UK airlines seeking to maintain flights to the EU after 29 March, we know that easyJet has already resolved that situation for itself by relocating its headquarters to Vienna. There is a serious possibility that British Airways may have to relocate its headquarters to Barcelona or Madrid, since the EU appears to be saying that it does not recognise the IAG as an EU company because its headquarters are within the UK. I see the Minister shaking her head. I would be interested to know whether she has any updated information as to whether BA can resolve this issue without having to relocate its headquarters out of the UK. It would be somewhat ironic if our flag carrier was headquartered in Madrid or Barcelona The other issue relates to when airlines merge. For example, at present we have limited competition between Aberdeen and London, operated by Flybe. Flybe has sold itself for £1 or £1 million—I cannot remember which, but it was a very small amount—although this is being disputed. The question we are left with is what guarantees there would be for those slots if Virgin and its partners take over Flybe. Would it come under UK law? Would there be any EU intervention—or would there have been—and how would it be enforced? So, although the Minister said that the competition regulation has never been applied within the EU, if the UK becomes a third country, could it not then be used by the EU as a discriminatory weapon against us if we are seeking reciprocal rights For example, the UK Government may well say that on 29 or 30 March all airlines will be free to continue operating into the UK on exactly the same terms as they do currently. We can do that, but is there any obligation on the EU to reciprocate? If there is not, does this mean that we will be offering free access to all our airports for continental airlines but UK-registered airlines will potentially be denied all access to theirs? Facing this kind of uncertainty is pretty catastrophic 45 days out from Brexit. So of course people are wondering whether they should book flights. I have rashly booked flights to the continent in May and August, mainly because if you do not book them in time they are not available—but they are subject to uncertainties that may or not be resolved The Minister needs to answer some basic questions. To what extent will we be in the same situation as we are now? To what extent will the ability to change the rules and regulations unilaterally be open to the UK? If we do it, what will be the implication for our relationship with the EU? Or are we simply saying that we are transferring the law by replacing "the EU" with "the UK" but have absolutely no comment to make on how the EU is going to operate, what sanctions or otherwise it may impose or what redress we may have. I may have read it wrongly, but this reads to me as an entirely unilateral operation by us, with no guarantees that the EU will reciprocate any of it.