Editor’s Highlights
Aviation policy in June has continued to be dominated by fall out from the Coronavirus pandemic, the industry’s battle with the Government over new Quarantine rules introduced by the Home Secretary requiring those entering the UK by air to self-isolate for 14 days, and the Government’s resolute failure to offer a sector specific ‘bail out’ despite doing having done so for other parts of the UK’s leisure economy and the fact that most EU and North American Governments have done so. There is much speculation about the reason for this, which focuses on the crisis strategies adopted by leading UK airlines which have not been popular in Whitehall, and yet they have benefited materially from the generic commercial loans and the furlough support the Government available to large firms.
By comparison smaller airlines and airports, who need direct support far more, appear to have secured very little support beyond the generic, in what looks suspiciously like a one-size fits all policy. This is putting a number of them at real risk of financial collapse.
Whilst monitoring this unfolding situation and briefing Government Officials and MP’s where the opportunity arises, SASIG is leading attempts on behalf of the LGA to find common ground between the Government, airports and local authorities on Business Rates. An evidence gathering exercise is intended to conclude late next month.
SASIG is also co-ordinating a study, in partnership with 30 authorities, to examine the impacts on local economies of the COVID related downturn in aviation. Work is underway, with a report planned for September in time for the Autumn Spending Review.
Chris Cain
Head of Secretariat
Monthly Highlights
3rd June – Home Secretary confirms that 14-day quarantine plans will go ahead as expected.
4th June – Home Secretary holds meeting with industry leaders to discuss quarantine plans.
8th June – 14-day quarantine plans began for passengers entering the UK.
11th June – Government publishes new aviation COVID-19 guidance.
13th June – TSC publishes their report titled ‘The Impact of the Coronavirus pandemic on the aviation sector’.
23rd June – CAA launches its consultation into the Economic Regulation of Heathrow. It will run until 18 August.
To note: two consultations were extended due to the COVID-19 crisis:
- CAA criteria for Assessing and Accepting the Airspace Change Masterplan. This ended on 26 June 2020.
- Government consultation on Freeports. This will now end on 13 July 2020.
Events, Meetings and Conferences
SASIG Meetings
1st October 2020: 11am-1pm: SASIG full meeting (Venue: LGA, Smith Square, London). This replaces the meeting originally scheduled for 17th July 2020: (Venue: LGA, Smith Square, London).
19th November 2020: 11am-1pm: SASIG full meeting (Venue: LGA, Smith Square, London) Please note: this date may now also change.
External Conferences (please note: some changes due to COVID-19 crisis)
– 30 June-2 July 2020: LGA Annual Conference & Exhibition: Harrogate. (Cancelled-series of webinars now available – for further details please see here)
– 5-6 October: British-Irish Airports EXPO: Venue will be ExCel, London. (Rescheduled from 9-10 June).
– 10-12 June 2021: AeroExpo UK: The UK’s festival of aviation. Wycombe Air Park.
Parliamentary and Government News
Both houses rose for the Whitsun Adjournment on 21st May and returned on Tuesday 2 June.
3rd June – Home Secretary Priti Patel makes oral statement to Parliament regarding health measures at the border. Her statement may be seen here.
4th June – Transport Secretary, Grant Shapps issues statement on Coronavirus (COVID-19) whereby face masks will be mandatory on public transport (including aircraft) in England from June 15th. His statement may be seen here.
11th June – Government publishes new aviation COVID-19 guidance. For details see here.
12th June – Government announces new Jet Zero Council. See details here.
13th June – TSC publishes their report titled ‘The Impact of the Coronavirus pandemic on the aviation sector’.
Transport Questions: House of Commons:
3rd June: COVID 19: Aviation
A question was asked of the Chancellor of the Exchequer whether he would make a statement on covid-19 and the economic impact on aviation. Kelly Tolhurst, Parliamentary Under Secretary of State for Transport responded on his behalf. Details may be seen here.
3rd June – COVID-19: UK Border Health Measures
Home Secretary Priti Patel makes oral statement to Parliament regarding health measures at the border. Her statement may be seen here.
3rd June – Future of aviation and the aerospace industry
The MP for Paisley & Renfrewshire North outlines details of a petition submitted by his constituents requesting that the House of Commons urges the Government to secure a sustainable future for the aviation industry. Details may be seen here.
29th June – UK Borders: Self isolation exemptions
The Secretary of State for Transport made a statement regarding the easing of travel restrictions across borders in light of the COVID-19 crisis. The statement may be seen here.
Transport Questions: House of Lords
2nd June: COVID 19: Public Transport
Government was asked what assessment they have made of the impact of the COVID-19 pandemic on the provision of public transport (including aviation). Further details here.
4th June: COVID 19: Aviation
The following Answer to an Urgent Question was given on Wednesday 3 June in the House of Commons. Details here.
4th June – COVID-19: UK Border Health Measures
A Statement was made on Wednesday 3 June in the House of Commons – see here.
18th June – Civil Aviation (Insurance) (Amendment) (EU Exit) Regulations 2020
A motion was put forward that the draft Regulations laid before the House on 5 March be approved.
29th June – COVID-19: Airline Sector
A question was asked as to what assessment the Government have made of the impact of COVID-19 on the airline sector; and what steps they are taking to support that sector. Further details may be seen here.
Parliamentary Questions:
Q.1. Question (51855) asked by Henry Smith (Crawley) on 1 June 2020: “To ask the Secretary of State for Transport, what assessment the Government has made of the economic effect of covid-19 on (a) airports and (b) the local authorities in which they are located”.
A. Kelly Tolhurst on 9 June 2020: “The Government recognises the challenging times facing the aviation sector as a result of COVID-19, and has been engaging regularly with airports throughout the UK to understand the impact that COVID-19 is having on their financial position. The Government continues to do so. Businesses across the industry, including airports, have drawn on the unprecedented package of economic measures we have put in place during this time.
The Government has now made £3.2 billion available to local authorities, through an un-ringfenced grant, so they can address pressures they are facing in response to the COVID-19 pandemic. The Ministry of Housing, Communities and Local Government will continue to work with local government over the coming weeks to develop a collective understanding of the costs that local authorities are facing, and to ensure that they are managing as the pandemic progresses”.
Q.2. Question (51860) asked by Henry Smith (Crawley) on 1 June 2020: “To ask the Chancellor of the Exchequer, how much financial support has been provided to (a) airports, (b) airlines and (c) the aviation supply chain in response to the covid-19 outbreak, to date”.
A. Kelly Tolhurst on 9 June 2020: “The Government recognises the challenging times facing the aviation sector as a result of COVID-19. Businesses across the industry have been able to draw on the unprecedented package of economic measures put in place during this time by the Government. In addition the sector has been able to apply for the Bank of England’s Covid Corporate Finance Facility. However, if businesses across the sector find themselves in trouble as a result of coronavirus even following the Government’s cross-economy wage and financial interventions, the Transport Secretary and Chancellor have confirmed that the Government is prepared to enter discussions with individual companies seeking bespoke support as a last resort, having exhausted all other options. Any intervention would need to represent value for money for taxpayers. Businesses across the sector are eligible and have accessed these schemes which has protected a number of jobs across the industry. We do not comment on the commercial or financial matters of private firms and are therefore unable to say anything further at this stage”.
Q.3. Question (51862) asked by Henry Smith (Crawley) on 1 June 2020: “To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of temporarily suspending air passenger duty for (a) domestic routes, (b) short haul routes and (c) long haul routes to help support the aviation sector”.
A. Kemi Badenoch on 9 June 2020: “The Government recognises the challenging times facing the aviation sector as a result of COVID-19 and the Chancellor wrote to the aviation sector on 24 March to set out the Government’s position and the support measures available. The Government has announced an unprecedented package of support for workers and businesses to protect against the current economic emergency.
This includes the Coronavirus Job Retention Scheme, which has so far helped 1 million employers across the UK furlough nearly 8.5 million jobs, protecting people’s livelihoods. This scheme was recently extended until the end of October, meaning that it will now be in place for a full eight months, giving businesses the vital support that they need. The Government is also prepared to enter negotiations with individual companies seeking bespoke support as a last resort, having exhausted other options. However further taxpayer support would only be possible if all commercial avenues have been fully explored, including raising further capital from existing investors and discussing arrangements with financial stakeholders. More broadly, the government has committed to consult on aviation tax reform. We will provide more detail on next steps in due course”.
Q.4. Question (51599) asked by Maria Eagle (Garston & Halewood) on 1 June 2020: “To ask the Chancellor of the Exchequer, how many meetings Ministers of his Department have had in the last three months with representatives of the aviation industry on tackling the covid-19 outbreak”. (See Grouped answer below)
Q.5. Question (51600) asked by Maria Eagle (Garston & Halewood) on 1 June 2020: “To ask the Chancellor of the Exchequer, how many meetings Ministers of his Department have had with representatives of UK airports since the start covid-19 outbreak; and what the frequency of those meetings were”. (See grouped answer below)
A. (Grouped answer for Questions 51599/51600/51744/51745/53428/53429) Kemi Badenoch on 4 June 2020: “Treasury Ministers and officials meet with a wide range of stakeholders across sectors as part of ongoing policy development and implementation. Ministers and officials from the Department for Transport are in regular contact with airlines, airports and unions to understand the impact that COVID-19 is having on the sector and its workers”.
Q.6. Question (54975) asked by Gerald Jones (Merthyr, Tydfil & Rhymney) on 4 June 2020: “To ask the Secretary of State for Transport, what recent discussions he has had with (a) the Chancellor of the Exchequer and (b) other Cabinet colleagues on Government support for airlines and the aviation industry”.
A. Kelly Tolhurst on 9 June 2020: “The Department has been working closely with the aviation sector and HM Treasury to produce and support measures which will ensure there is sufficient capacity to protect global travel routes, continue repatriation, freight and maintain vital connectivity. The Secretary of State is regularly meeting with his Cabinet colleagues including the Chancellor of the Exchequer, in addition to the many more meetings attended by Junior Ministers and DfT Officials to help achieve these goals”.
Q.7. Question (54988) asked by Mohammad Yesin (Bedford) on 4 June 2020: “To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will provide additional financial support to firms that are developing the next generation of low carbon aircraft.
A. Nadhim Zahawi on 11 June 2020: “Technology and innovation are important for growing the UK’s aerospace sector. Through the Aerospace Growth Partnership, the Government and industry are investing a total of £3.9 billion from 2013 to 2026 in aerospace research and development. Funding is directed by the UK’s Aerospace Technology Strategy, which focuses on developing future aircraft while reducing the environmental impacts of aviation and raising the competitiveness of the UK sector. We are also investing a further £300 million in the Future Flight Challenge, which provides funding to develop future air transport systems that will include electric and autonomous flight”.
Q.8. Question (55919) asked by Angus Brendan MacNeil (Na h-Eileanan an lar) on 8 June 2020: “To ask the Secretary of State for Transport, what the (a) volume and (b) value was of the freight transported from UK airports to international destinations in each of the last 10 years, by airport.
A. Kelly Tolhurst on 11 June 2020: “The volume of freight handled at UK airports that receive commercial traffic and transported to international destinations is collected by the Civil Aviation Authority (CAA) and is displayed in the attached Table 1.
The CAA does not collect data on the value of freight handled at UK airports. Information on the value of goods is only available for goods exported to non-EU countries that are cleared for customs purposes at UK airports from HMRC and is displayed in the attached Table 2.
Table 1 – Freight tonnes – UK airports – 2009-19 (Word Document, 21.28 KB)
Table 2 – Value of exported goods – UK airports (Word Document, 21.41 KB)
Q.9. Question (58687) asked by Henry Smith (Crawley) on 11 June 2020: “To ask the Chancellor of the Exchequer, what discussions he has had with representatives of the aviation industry on business rates relief”.
A. Jesse Norman on 16 June 2020: “Treasury Ministers and officials meet with a wide range of stakeholders across sectors as part of ongoing policy development and implementation. Ministers and officials from the Department for Transport are in regular contact with airlines, airports and unions to understand the impact that COVID-19 is having on the sector and its workers”.
Q.10. Question (HL5075) asked by Baroness Randerson on 2 June 2020: “To ask Her Majesty’s Government what plans they have to introduce a business rate relief scheme for airports in England”.
A. Lord Agnew of Oulton on 16 June 2020: “The Government has provided enhanced support to the retail, hospitality and leisure sectors through business rates relief given the direct and acute impacts of the COVID-19 pandemic on those sectors. The Ministry of Housing, Communities and Local Government has published guidance for local authorities on eligible properties. A range of further measures to support all businesses, including those not eligible for the business rates holiday have also been made available. For example, the Government has launched the Coronavirus Job Retention Scheme to help firms continue to keep people in employment, and the Coronavirus Business Interruption Loan Scheme”.
Q.11. Question (59408) asked by Paul Maynard (Blackpool North & Cleveleys) on 15 June 2020: “To ask the Secretary of State for the Home Department, what the criteria is for the review of the 14-day quarantine at UK airports”.
A. Kevin Foster on 23 June 2020: “The measures will be subject to review at the three week point and at regular intervals thereafter. The review will take into account the latest scientific evidence and consider a range of other factors, including the impact on the economy and industry, in order to ensure the measures remain effective and necessary. The first review will take place by 29 June and will include further engagement with industry partners”.
Q.12. Question (59788) asked by Gavin Robinson (Belfast East) on 16 June 2020: “To ask the Secretary of State for Business, Energy and Industrial Strategy, how much financial support his Department has allocated to the aerospace sector since the start of the covid-19 lockdown; and what plans he has to provide further support to that sector”.
A. Nadhim Zahawi on 22 June 2020: “Aerospace companies have benefitted from the Government’s extensive financial support package, on top of existing support measures for the sector. The UK’s aviation and aerospace sectors can expect to benefit from over £6 billion of support through UK Export Finance, the Bank of England’s Covid Corporate Finance Facility, research and development grants, and other measures. We will continue to support the UK aerospace industry to get back on its feet to protect jobs across the UK”.
Q.13. Question (59673) asked by Sir Edward Davey (Kingston & Surbiton) on 16 June 2020: “To ask the Secretary of State for Transport, what steps his Department is taking to support electric short-haul flights in the UK; and if he will make a statement”.
A. Kelly Tolhurst on 24 June 2020: “The Government supports the development of new aviation technology such as electric aircraft. We are providing £125m of funding to the Future Flight Challenge and supported the Civil AviationAuthority establish an Innovation Hub to engage with innovative aviation companies. Government will consult on Aviation and Climate Change later this year”.
National and Regional News
1st June – A Yorkshire Post article titled: ‘An empowered Leeds Bradford Airport is essential for Yorkshire and we must back it in full’ can be seen here.
1st June – Unite union says a “huge economic hole” worth over £1bn could open in the North East unless jobs at Newcastle International Airport are safeguarded. Details here.
2nd June – Unite also vows to “use all means at its disposal” to challenge proposed job losses and pay cuts at Stansted Airport. It has called on Government to support airports.
3rd June – Southampton Airport expansion decision could be made next month. The public is set to be consulted again before a final decision is taken.
3rd June – Business plan to reopen Plymouth City Airport officially put forward. The airport closed in 2011.
4th June – Campaigners say more people will hear flights if Leeds Bradford Airport expansion plans proceed. Airport wants to increase annual passenger numbers to 7m by 2030.
4th June – Politician calls for review of £42m Jersey Airport redevelopment. It should be reviewed in the light of the COVID-19 crisis says Deputy Russell Labey.
4th June – Investment plans laid out for Blackpool Airport. These include replacement hangars, a new control tower, fire station and administration facility, says a council report.
5th June – Cornwall Airport Newquay announces new route to Teesside. It will start in July.
6th June – Cornwall Council hopes the Government will give cash to help Newquay Airport which has been forced to close due to coronavirus. Further details may be seen here.
7th June – 2nd Leeds MP submits objection to £150m Leeds Bradford Airport expansion. Plans are for a new terminal would include three main floors with improved vehicle access.
7th June – Heathrow boss warns of 25,000 job cuts as quarantine plans go ahead. He says he will need to make a decision within the next couple of weeks.
8th June – MP says Southampton Airport may struggle to survive if runway is not extended. Flick Drummond supports proposals to extend the runway by another 164 metres.
8th June – Southend Airport will reduce cargo night flights from today. Cargo flights had been operating three times every night between 1am and 5.30am.
9th June – Loganair is to fly from Exeter for the first time from July. Routes include to Newcastle and to Edinburgh and were taken over from Flybe after its demise.
10th June – Gatwick is to re-open its North Terminal. It was closed at the start of April due to the pandemic.
10th June – Plans reveal how Luton Airport is set to change over the next 20 years. Next year, it will submit a Development Consent Order to government regarding proposed expansion.
10th June – A report says Gatwick area economy could take a decade to recover from virus. The report was commissioned by the Gatwick Diamond Initiative.
10th June – Cumbrian MP backs call for aviation debate. He has joined calls for a debate to be held in the House of Commons on job losses in the aviation sector.
11th June – Luton aim to become UK’s greenest airport. They want to deliver a greener development model for an expanded airport and support economic recovery from Covid-19.
11th June – Heathrow Airport to begin cutting frontline jobs as passenger numbers flatline. It has already cut one-third of managerial roles.
11th June – Norwich Airport asks public where they would like to fly to once the COVID-19 crisis has disappeared. Further details can be seen here.
12th June – Plans revealed to turn Ramsgate and Manston Airport into a freeport zone. A London-based marketing consultancy has put forward the idea.
15th June – Southampton MP backs plan for extended runway. She says the airport is “an important contributor to the economic prosperity of the wider region”.
16th June – Stobart Air are to close their Southend base. They say the reason is the impact of COVID-19 on their airline.
16th June – Council issues statement welcoming Luton Airport decision to delay expansion. A revised bid will be made instead in 2021.
17th June – Job losses predicted at Newquay Airport as bosses say it will take ‘years’ to recover. Staff have been informed today of the news.
17th June – Newcastle Airport reveals changes when passengers return. Chief executive outlined financial state of the business and what customers can expect when they return.
18th June – London City Airport heralds ‘clear, early demand’ for return to flying. The airport reopens for passengers this weekend.
18th June – Manchester Airport is first in UK to launch a new free way to keep queues shorter. Passengers can book a free slot online to pick a time to pass through security.
18th June – Leeds Bradford Airport CE says plan is about modernising not expanding. See further details here.
21st June – Southend Airport outlines the devastating cost of C-19. CEO says airport lost 90% of its income and aviation industry was hit harder than 9/11 and the financial crisis.
21st June – £150m Gatwick Airport Station upgrade sees platform extensions in some areas of the South East. This will help allow passengers to travel with less congestion.
21st June – Southampton Airport plans to fell some trees in ancient woodland to be discussed in public. Council planning committee will discuss on 23 June.
21st June – The latest Heathrow, Gatwick, Stansted and London City airport travel rules can be seen here.
23rd June – CAA launches its consultation into the Economic Regulation of Heathrow. It will run until 18 August. For further details see here.
24th June – Eastern Airways announces it will re-launch regional flights to Cornwall. They will go from Leeds Bradford and Teesside and replace those lost by the Flybe demise.
25th June – Manchester Airport to open Terminal 3 next week. The airport said the move would allow people to keep a sensible distance.
26th June – Bristol Airport say no decision has yet been made on whether to appeal against a decision to refuse its expansion plans. Bosses have until mid-September to lodge an appeal.
27th June – Council leader says Southampton Airport expansion decision may not be made until September. Airport bosses had said that they were working towards a July date.
27th June – North East bosses have insisted the long-term future of Newcastle Airport is ‘not in question’. However, they do say it will face financial challenges in the short-term.
29th June – Southend Airport is to stop the removal of liquids and laptops from hand baggage. This will be thanks to new X-ray machine technology.
30th June – Birmingham Airport announces restructure with 250 jobs at risk. Consultation has begun after airport staff were informed of the move in an internal announcement.
Other Aviation Industry News
1st June – The world’s first accelerator designed explicitly for post-COVID-19 travel has been launched. Further detailshere.
2nd June – IATA welcomes the COVID-19 Aviation Health Safety Protocol guidelines released by the European Aviation Safety Agency and the European Centre for Disease Prevention and Control. More details can be seen here. EASA also releases document listing airports with high infection rates – see here.
2nd June – An article titled: ‘Road to Recovery: ICAO Task Force issues guidelines for rebuilding of global aviation’ can be seen here.
2nd June – Easyjet says it will resume flights to almost 75% of its network by August. All passengers and crew will have to wear face masks on board.
3rd June – Home Secretary Priti Patel makes oral statement to Parliament regarding health measures at the border. Her statement may be seen here.
3rd June – AOA responds to Government’s quarantine regulations by saying they should move to a risk-based approach. Their CE’s statement may be seen here.
4th June – Belfast Airport chief says quarantine plans will destroy Northern Ireland tourism. He also claims the regulations were imposed without consultation.
4th June – Home Secretary holds meeting with industry leaders to discuss quarantine plans. BA decided not to attend.
6th June – DAA chairman criticises regulator as €1m a day lost. He says decision to cut passenger charges at Dublin Airport is “simply disconnected from State policy”.
8th June – An article in Airport Technology stating that the long term impact of COVID-19 on aviation finance is unclear can be seen here.
9th June – Shannon Group reports a ‘positive’ first meeting with the newly formed Shannon Airport Oireachtas Group.There is an aim to rebalance regional growth outside of Dublin.
10th June – Construction begins on new hangar at Biggin Hill Airport. The development for Bombardier Aviation will comprise a hangar of nearly 250,000 sq ft.
11th June – Ireland West Airport supports Ryanair’s call to protect regional connectivity. The airline wants a level playing field for all European airlines.
11th June – Government publishes new aviation COVID-19 guidance. For details see here.
12th June – Ryanair rejects new UK guidance for passengers to check in all luggage. It says it would instead recommend that passengers minimise checked-in luggage.
12th June – Government announces new Jet Zero Council. See details here.
12th June – Airlines launch legal action against UK quarantine. Easyjet, British Airways and Ryanair have launched the action.
13th June – The DAA is losing €1 million every day amid the COVID-19 crisis, according to its CEO. For further details see here.
15th June – Face coverings mandatory for all travelling on public transport including aviation in England from today. See details here.
17th June – Drop of 1.5 million passengers at Irish airports in first quarter of 2020. New figures come from the Central Statistic Office.
18th June – Spaceport Cornwall report may be seen here. Cornwall Council have reiterated their determination to include Newquay in the race to space from UK soil.
18th June – An article in Airport Technology about a complete solution for managing airport operations can be seen here.
20th June – Airport tests may provide ‘early travel quarantine release’. Passengers arriving at UK airports could soon be able to have same type of saliva swab test used by NHS.
22nd June – Work begins on new aircraft hangar at Biggin Hill Airport. The development for Bombardier Aviation will be capable of housing 14 Global 7500 aircraft at any one time.
22nd June – ICAO Secretary General contributes to WEF meeting on aerospace, aviation, travel and tourism. See more details here.
24th June – UK airports warn 20,000 jobs at risk as travel slump continues. The warning came from recent analysis by the AOA.
24th June – Swissport to axe thousands of jobs at airports. The ground handling firm is blaming this on the coronavirus pandemic and its impact.
25th June – European aviation leaders appeal to governments for ‘green’ recovery support. They say smart measures are needed to support industry through post-pandemic recovery.
26th June – EasyJet has set out plans to restart flights from Scottish airports. These will be from Glasgow, Aberdeen and Edinburgh.
27th June – Half of Glasgow Airport car park staff to lose their jobs. Decision comes from NCP who run the car parks at the airport.
27th June – Former owner of Flybe is furious that the Government did not bail them out. Further details here.
28th June – An article in Business Traveller titled: The future of travel: how the pandemic is changing airports’ can be seen here.
29th June – Inverness Airport launches survey for businesses on travel needs after coronavirus lockdown. Further details may be seen here.
30th June – Easyjet is to close three of its UK bases. These are at Stansted, Newcastle and Southend and will mean the loss of hundreds of jobs.
SASIG Library Additions
On 13th June the Transport Select Committee published their report titled ‘The Impact of the Coronavirus pandemic on the aviation sector’.