The UK government has said it will publish its strategy for
the recovery of the aviation sector this autumn, which it says will address a
number of the industry’s concerns while staying in line with its “green
ambitions”.
In response to a Commons Transport Select Committee report
on the impact of the coronavirus pandemic on the aviation industry, the
Department for Transport said the strategy, which will run to 2025, will
address concerns such as the return of growth to the sector, workforce, skills,
regional connectivity and freight, consumer issues, climate change and
decarbonisation, health, safety, security and the role that UK aviation plays
in retaining the nation’s global reach.
Specifically, the chancellor has announced he will open a consultation
on aviation tax reform following years of calls for Air Passenger Duty to be
reduced. Travel bosses have increased their attention on APD in recent weeks,
saying a temporary suspension of the tax could help stimulate demand as the
sector tries to recover the pandemic.
The response also outlines some of the work the government
is doing to protect jobs in the sector, but this only includes measures that
were introduced at the height of the pandemic in the UK – the Coronavirus Job
Retention Scheme, which comes to an end in October, a Bank of England-backed
loan scheme and flexibility in regulations. There is no further detail on the
possibility of sector-specific support, such as business rates relief, other
than to say that proposals from airlines and airports are ‘under consideration’
at HM Treasury.
The Transport Select Committee said it is also disappointed that
the response does not directly address its recommendation that coronavirus
testing at airports could replace quarantine measures or its call for international
health standards.
Committee chair Huw Merriman MP said: “The publication of an
aviation recovery plan is welcome, but it cannot come quick enough for a sector
devastated by the impact of coronavirus. Our report expressed a desire to see
more pace and detail on government action to address the crisis. We await to
government’s aviation recovery plan and will look carefully at how government intends
to deal with some of the specific points in our report.
“The government’s quarantine regime, coupled by a refusal to
endorse airport testing to reduce the quarantine period, adds further barriers
to travel. Whilst the government’s approach can be argued for on health
grounds, it also further justifies the committee’s original call for the
government to provide a sector deal to support our ailing aviation industry and
its workforce.”
The DfT said that while it regrets the decision of British
Airways to make up to 12,000 staff redundant as a result of the downturn, it is
a ‘commercial decision’ that is ultimately down to private businesses to make. The
committee is due to hear testimony from BA chief executive Alex Cruz on 16
September to get an update on the pandemic’s impact on aviation and the airline’s
plans to reduce staffing levels.
Merriman continued: “British Airways’ ‘fire and rehire’
policy has rightly attracted criticism from government ministers and the prime
minister himself. It is disappointing that direct legislative action has not
been enacted to make this type of action unlawful. The government says the
recovery plan will ‘consider the role of the slot system in rebuilding a
competitive aviation sector’ – I look forward to hearing how ministers plan to
set out their preferred means of reform.”
The committee plans to host a debate on the response and the
impact on the aviation sector on the floor of the House of Commons this Thursday,
10 September.
Commenting on the government response, Oliver Richardson,
Unite national officer for aviation, said: “Aviation workers are being promised
jam tomorrow when what they need is bread and butter today.
“The government’s recovery programme needs to go much
further than rehash previous policies. What we need are genuine solutions which
will instil the confidence in the industry that it can recover from the effects
of the pandemic, and will enable them to plan accordingly.
“The publication this autumn of a report, which is aimed at
helping the aviation industry recover by 2025, is not going to stem the tidal
wave of redundancies that the industry is facing today. The industry is making
decisions on job cuts based on the lack of tangible assistance from government,
and until such real practical support is provided, the loss of jobs will
continue.
“It is all very well the government talking about the
recovery of the aviation industry by 2025, but airlines and airports are at real
risk of closure. Unless immediate action is taken there will simply not be a
recognisable sector to build back up.”
Unite’s assistant general secretary Diana Holland added: “While
this is an important step, it cannot be forgotten that it is six months since
support for the aviation sector was first promised by government. Thousands of
jobs in the aviation sector have already been lost and many more redundancies
are already in the pipeline. The publication of a report ‘in the autumn’ is too
late. Not only must this report be published immediately, it must include
immediate assistance to the industry. Direct intervention by the government to
protect jobs is the only way that aviation companies are going to reconsider
shedding jobs and prevent the loss of a professional, skilled, experienced and
dedicated workforce.”