I remind hon. Members that there have been some changes to normal practice in order to support the new hybrid arrangements. Timings of debates have been amended to allow technical arrangements to be made for the next debate. There will be suspensions between debates.
I remind Members participating, physically and virtually, that they must arrive for the start of a debate in Westminster Hall and are expected to remain for the entire debate. I also remind Members participating virtually that they must leave their camera on for the duration of the debate and that they will be visible at all times, both to one another and to us in the Boothroyd Room. If Members attending virtually have any technical problems, they should email westminsterhallclerks@parliament.uk. Members attending physically should clean their spaces before using them and before leaving the room. Please put the cleaning materials in the bin.
We are about to begin. The Minister has now arrived, so I will not ask whether we need to have a short delay, if that is what the Member introducing the debate would have liked to do.
9:26 am
Steve Double (St Austell and Newquay) (Con)
I beg to move,
That this House has considered the future of regional airports.
It is a pleasure to serve under your chairmanship, Ms McVey, and a great honour to open the debate on a matter that I feel passionately about. I know many colleagues feel the same, owing to the number of Members who have applied to speak.
I am speaking as chair of the all-party parliamentary group on general aviation and as the MP representing Cornwall airport Newquay. I draw the House’s attention to the fact that my wife, Anne, was recently elected a Cornwall councillor and is now chairman of the Newquay airport consultative forum.
I am sure we are all aware of the unprecedented impact that the covid-19 pandemic has had on the UK aviation sector. Collapsed demand drove passenger levels at UK airports last summer to their lowest since 1975. In the first quarter of 2021, they were down 94% compared with 2019, and economic output for the air transport sector reduced by 89% between February and March 2020. As a result, many regional airports are losing many millions of pounds in revenue while incurring significant additional debt, leaving them in a perilous financial situation.
Although our national recovery has begun, many challenges remain for the sector. Our airlines and airports face a far longer road to recovery than many other sectors. Even with a successful global vaccine roll-out, 2025 is the earliest date by which the UK is predicted to return to 2019 passenger levels. Furthermore, that recovery is unlikely to be even, with regions outside London and the south-east set to recover far more slowly.
It is crucial that we recognise the role that the aviation sector and, in particular, regional air connectivity will play in our future economy. Pre-pandemic, the sector had an estimated value of more than £28 billion to the UK, and every year almost 80% of inbound visitors reached the UK by air. We enjoy one of the largest aviation networks in Europe and the third biggest globally, with more than 230,000 people working across more than 40 commercial airports.
Regional airports also play a vital role in supporting our national hub airports. Airports such as Heathrow, Gatwick and Manchester rely on routes offering good connectivity to the regions of the UK to provide the passengers for their long-haul flights. In particular, regional airports are vital to the Government’s levelling-up agenda, as they are crucial for economic development across our regions. They give regional communities the connectivity and accessibility they need to be part of the national economic and social fabric, and they allow people from all corners of the country to benefit from economic growth and prosperity.
I aim to start calling Front Benchers no later than 10.25 am, and the Minister needs to leave time for Steve Double to close the debate. I call Cherilyn Mackrory.
9:36 am
Cherilyn Mackrory (Truro and Falmouth) (Con) [V]
It is a pleasure to serve under your chairmanship, McVey, and I congratulate my constituency neighbour, my hon. Friend the Member for St Austell and Newquay (Steve Double), on securing the debate. Like him, I wish to support Cornwall airport Newquay because it serves the whole of Cornwall, including my Truro and Falmouth constituency. I will echo what my hon. Friend has said, but hope not to repeat too much of it.
Cornwall airport Newquay is a vital part of Cornwall’s transport and economic infrastructure as it provides national and international connectivity to and from Cornwall and the whole south-west. Given the geographical location of Cornwall, which has water on three of its sides, the airport provides a fast and cheap alternative for longer-distance travel, and speed and choice for businesses, residents and visitors. The airport supports a growing and resilient modern transport system for Cornwall. Before the pandemic, our airport was one of the county’s largest employers, employing over 600 people in different roles, including aircraft engineers, air traffic controllers, pilots, firefighters, instructors and so forth.
Aviation is a fundamental driver of international trade, and the connectivity it provides is a key component in delivering national competitiveness and enabling exports. Aviation and aerospace directly support over 250,000 UK jobs. They have been beacons of British engineering prowess for a hundred years, and, as we have heard, they still are. As my hon. Friend described, the aviation sector has unsurprisingly been hugely affected by the pandemic. We have seen countries across the globe shutting their borders and imposing multiple restrictions and regulations, which has meant that the movement of individuals and freight has been curbed. The pandemic is having an enormous impact on the aviation industry and our regional airports. Consequently, there are knock-on effects for the local economy.
In Cornwall, the knock-on effect on tourism, which relies heavily on aviation, is extremely significant. Building public confidence to kickstart aviation in order to aid the economy through tourism, while aiming to stem further job losses in aviation and aerospace, must be a priority. That will be important not only for our continued economic recovery, but for our hugely significant promise to level up the country. Cornwall must be part of that, as it is one of the most socioeconomically challenged counties of the UK. Put simply, Cornwall must not be left isolated, and its airport is key to that.
However, the industry must become environmentally sustainable. Climate change is a clear and pressing issue for us, our businesses and Governments across the world, and we know aviation emissions will increase if decisive action is not taken. I am pleased that UK aviation is committed to achieving net zero by 2050 through taking an international approach by working with Governments around the world, and through the UN. Current circumstances present an opportunity to drive decarbonisation through such an agenda, and the UK is well positioned to become a leader on green technologies, as we have heard, through sustainable aviation fuels and the electric flight that is taking place later this year. That will also create new and exciting well-paid careers for people in Cornwall and in all our regions.
It is a pleasure to speak under your chairmanship, Ms McVey, and I congratulate my good friend, the hon. Member for St Austell and Newquay (Steve Double), on securing the debate. He represents Cornwall at one end of the United Kingdom, and I represent Caithness at the other.
I want to speak about Wick airport. For some time, there has been a question mark over its future, which worries me and everyone who lives in the far north of the United Kingdom. It worries us all a great deal. The point about trying to regenerate the economy of Caithness once Dounreay, the UK’s first nuclear reactor, has been decommissioned is that we have to replace the employment up there. The airport is crucial not only to the present local economy, but to the future local economy of the far north of Scotland.
We all know how enthusiastic the Prime Minister is for a space launch, which I completely support. There was a proposal to have one of Britain’s first space launch sites in Sutherland, close to Wick airport. It strikes me that although we are forging ahead in a good way with a space launch, any question mark over Wick airport would take us in completely the wrong direction. In fact, if we lost Wick airport, that would be a major disaster for the north of Scotland and a big disaster for the United Kingdom, because, as the hon. Member for St Austell and Newquay has said, our chain of regional airports is crucial to the way we run our country and our economy.
For some time, we have been campaigning in the north of Scotland for a public service obligation for Wick airport. To that end, I give credit where it is due. The Scottish Government have offered a sum of money towards that, which is good, and I congratulate a former Member of the Scottish Parliament, Ms Gail Ross, on having achieved it, but that is not enough money to run this.
I congratulate the hon. Member for St Austell and Newquay (Steve Double). I represent the constituency in which Heathrow is located, which in no way can be described as a regional airport—I apologise if he feels that I am Zoom-bombing the debate—but I think it is absolutely critical to have a discussion about the need for a new aviation strategy, as a result of the development of regional airports over the recent period.
The aviation national policy statement previously before the House is no longer relevant. Aviation movements have changed. The way in which aviation will be used in the future has changed dramatically. As the hon. Member for Truro and Falmouth (Cherilyn Mackrory) said, we also now have to address aviation’s role in achieving net zero, as well as the impact of the pandemic. All of those factors need to be taken into account in the discussion of the future of regional airports.
The pattern of aviation is changing. We now know that the whole approach on which the last strategy and policy statement was based—with a major hub and a large number of regional airports that feed into that hub—no longer reflects the pattern of aviation. Even Howard Davies, the chair of the commission into the development of Heathrow and the potential for a third runway, identified that in the initial work and has confirmed it subsequently.
For my constituency, that means that we no longer want nor need a third runway at Heathrow, but we accept the need for investment in regional airports, because passengers simply want to fly point to point. In addition, we all want to overcome the environmental impact of aeroplanes coming from regional airports into Heathrow and outwards, which is wasteful and does not do regional economies any good whatever.
It is time for the Government to look at this matter overall. They need to look at a new national policy statement for aviation, which accepts that regional airports play a role in levelling up, of which there is no doubt; that the focus of concentration and investment should no longer be on a major hub at Heathrow and therefore a third runway is no longer necessary; and that if we are going to have an environmental aviation policy, it has to be localised and focus on minimising travel in some forms and, at the same time, on developing the science.
It is a pleasure to serve under your chairmanship, Ms McVey, and I congratulate my hon. Friend the Member for St Austell and Newquay (Steve Double) on securing this very important debate.
As has been said, regional airports are key to our economy, particularly for those of us—such as those of us in Nottinghamshire and my part of the east midlands— who are so far from coastal ports. Our rail, air and road connections are key to our vitality and our economy.
The pandemic has had a devastating impact on East Midlands airport. It is the largest pure freight airport in the country, but two thirds of its income comes from passenger travel—short-haul tourism flights—that obviously has not happened for the last 15 months. So, two thirds of the airport’s income as a business has disappeared. Obviously, there has been no sector-specific support for the airport as a business. It has taken advantage of furlough and other general business support to stay afloat. However, given the importance of East Midlands airport to our regional economy, I hope that this week the Transport Secretary will lay out a clearer and much more certain plan for the sector to get moving again. The peak time for tourist travel has already begun and allowing travellers who are fully vaccinated to travel without quarantine, and allowing operators to get flights back up and running, would be a huge boost for the sector.
The key benefit in the east midlands—because, as I have said, we are very far from coastal ports—is the potential to link up a real multi-modal hub for travel around air, and around road and rail links. We can also boost East Midlands airport and its economic potential with improved connectivity if we can get freight onto rail. As I say, East Midlands airport is the biggest pure freight airport in the country. Decisions coming up around the integrated rail plan and the Toton hub in the east midlands will be key, and I am raising those issues with Ministers directly.
It is an honour to serve under you as Chair, Ms McVey, and I thank the hon. Member for St Austell and Newquay (Steve Double) for securing this important and timely debate.
The UK’s regional airports are important engines of economic development. As an international and domestic transport hub, Newcastle International airport in my constituency is a large regional employer that supports many regional jobs on site, off site and through its supply chain. It supports manufacturing business exports, higher education through its work with our world-class universities and, of course, the tourism sector, which thrived before this crisis. It is a strategic asset for the north-east and is central to our future economic growth but, like many other airports, its future and transition to sustainability is seriously challenged by the devastating impact of the current crisis on international travel, and the Government’s apparent unwillingness to support and understand the special nature of this sector.
We all know the pandemic has taken an especially hard toll on aviation. Between April and December 2020, passenger numbers were down 89.3% year on year. In the first quarter of 2021, they were down 94% on 2019. It has been an absolute collapse. The numbers are not expected to return to pre-crisis levels until at least 2023, in the most optimistic scenario. Although I and colleagues have continually raised the need to support aviation throughout the crisis, the Government still do not seem truly to grasp the special circumstances faced by the sector.
Unlike almost every other kind of business, which we know have all struggled through this crisis, airports are by their nature unable to adapt and diversify their product in a meaningful way. When travel itself is the product and it has essentially been shut down by regulation, adaptation is not an option. The key reason airports find themselves in such tremendous difficulty, however, is because they are stuck with very high fixed costs for the provision and maintenance of infrastructure and services, such as safety and security. They are unable to adjust down their operating costs, let alone their fixed capital costs, to compensate for the low levels of traffic, at a time when they have been effectively shut down by Government.
It is a pleasure to speak in this debate. First, I congratulate the hon. Member for St Austell and Newquay (Steve Double) on bringing forward this debate. Westminster Hall debates offer the opportunity for those with a deep interest to participate, so I thank him for providing the opportunity to do just that.
We need to make no mistake here. I know the Minister understands that; all the hon. Members who have spoken have expressed it and I hope to further express their viewpoint. This is a UK-wide issue because the ripples of difficulties for the airports will affect every community in the United Kingdom, but I will speak specifically about Northern Ireland. I know the Minister has a deep interest in these matters and I am pleased to see him in his place. As a Northern Ireland MP, flight connectivity is vital for me. It is the reason I get here on time and get home on time. Flying over on a Monday or early on a Tuesday morning and flying back on a Thursday night is my routine. If Northern Ireland is to be on a path to fulfilling its full potential, some of that journey will be in the air, through reliable and frequent national and international flights.
Let me put on record my gratitude to the Minister for all his endeavours, his vast knowledge and his interest in this matter. I am not saying that other Ministers do not have that, but it is always good to represent our views to him and to get a response. I am very pleased to see the spokesperson from the Scottish National party, the hon. Member for Paisley and Renfrewshire North (Gavin Newlands), and the Labour spokesperson, the hon. Member for Wythenshawe and Sale East (Mike Kane). They also have a deep interest in this matter and I know they will reinforce the opinion of other hon. Members.
The statistics are clear: aviation is still firmly in the grasp of the worst crisis it has ever faced. Numbers of passengers travelling through United Kingdom airports last summer were the lowest since 1975. My goodness, that is hard to believe. Between April and December 2020, passenger numbers were down 89.3% year on year. In quarter one of 2021, they were down 94% compared with 2019—a drastic reduction in figures and in revenue generated. In the same period, passenger numbers were down almost 89% in London airports, 91.1% in English regional airports, 89.1% in Scottish regional airports, 86.1% in Northern Irish airports and 96.8% in Welsh airports.
10:09 am
20 of 31 shown
The UK’s regional airports are a vital catalyst for the economic growth of other sectors, as they facilitate inward investment in the services, products and tourism that support communities to thrive. Newquay airport, in my constituency, is vital to the prosperity of Cornwall and the wider south-west, and it contributed £50 million to the economy in 2015. We witnessed the importance of Newquay airport during the recent G7 leaders’ summit in Cornwall. Given the distances involved and the aircraft that needed to be accommodated, there is a strong case that without Newquay airport it would not have been possible successfully to host the G7 in Cornwall. The collaboration between the Government, Cornwall Council and Newquay airport to fund and deliver the infrastructure required to host the summit in record time is an example of what can be achieved through effective collaboration between Government and regional airports to deliver short-term and long-term value across the UK.
It is therefore right that the Government have intervened with £7 billion of support for the aviation sector during the pandemic, through loans, grants for business rates and the job retention scheme. However, with many of our regional airports in a fight for survival as they bear the brunt of the global pandemic, the Government need to look at providing sufficient ongoing support to keep our regional airports open and planes flying. Many of our smaller regional airports have been hardest hit, will take the longest to recover, and are the least well-resourced to do so. Therefore, we need additional assistance if the economies they serve are to be prevented from falling even further behind during the recovery.
Unfortunately, experience tells us that, once a regional airport closes, all too often it never returns. With developers reallocating the land, large airports such as Heathrow and Gatwick will pull through the crisis—they really are too big to fail—but that is not true of our smaller regional airports. We must therefore protect regional airports now. If we allow them to close, it is likely that the connections they provide and the economic contributions they make to the regions they serve will be lost forever.
I am particularly pleased to welcome the news of a review on cutting air passenger duty on domestic flights, which I and many other colleagues have been advocating for some time. Domestic UK operators bear a disproportionate burden owing to that tax because the charge is levied on the outbound and return journeys. Unfortunately, there has been a loss of connectivity since APD was introduced in 2006, with the tally of UK domestic routes falling by 27%.
Our departure from the EU provides us with a timely opportunity to cut the tax, which would be a critical move to support connectivity across the country and a welcome step to provide some vital relief to the airline industry. When will the Government make a decision on cutting domestic APD? I gently suggest to the Minister that that should be done as a matter of urgency, as one way to support our regional airports.
I am also pleased that, last year, the Government announced the regional air connectivity review as part of their commitment to levelling up the UK. I look forward to any update that the Minister can provide on the review, and he will know it is keenly anticipated by the sector.
I stress the important role that public service obligation routes can play in supporting our regional airports. PSOs could be a vital lifeline for many regions across the UK as we recover from the pandemic, and it is disappointing that the UK has only three PSO routes, all linking to London. That is far fewer than other European countries; for instance, France has around 40. Therefore, I would welcome the expansion of PSO routes to key non-London routes, which would boost the confidence of prospective operators to take on new routes and help with our regional connectivity.
Adding to the importance of our regional airports is their contribution to our transition to net zero—to a cleaner, greener and more sustainable future. Before we can reach the goal of net zero long-haul transatlantic flights, our regional airports will play a critical role in offering short-haul electric flights that are entirely carbon free. For example, I am delighted that the first hybrid electric aircraft will fly between Exeter and Newquay airports later this summer. I am also pleased that easyJet is committing itself to covering short-haul flights with a new electric fleet by 2030 and that Airbus is in the early stages of developing the world’s first zero-emission aircraft.
My view is that, within the next 20 years, as we introduce clean methods of flight, flying will be the environmental transport choice. We are not too far from the opportunity for all domestic flights to be zero emission, which means that one of the biggest barriers to flying—the environmental impact—will be removed. When we reach that point, flying will become the mode of transport of choice for many travellers, but that will not be achieved if we do not have a network of regional airports to serve the whole of our country. With that in mind, our regional airports must be protected to allow us to realise the full potential of the new technology.
It is clear that aviation is still in the midst of the most challenging crisis it has ever faced, which leaves many of our regional airports in a fight for survival. The importance of the industry is evident: better connectivity, greener aviation and a more robust economy. I am pleased that the Government have intervened with billions of pounds to support the sector, but we must recognise the importance of our regional airports and provide them with the support they need to survive the pandemic and to thrive. Greater financial support, reduced APD and more PSO routes are some of the available options that I believe the Government should consider. I urge them to look at such options to ensure that the UK domestic aviation sector can thrive in the years to come and play a critical part in levelling up all regions of the UK.
Amid the growing consensus that the global community must act now to avoid the worst consequences of climate change, the UK will host COP26, which takes place in November, and I believe aviation has a full part to play in the conference and in achieving the net zero future.
The industry has taken great strides forward, and electrification and alternative fuels will greatly reduce aviation’s carbon impact. It is important that the research and development momentum and the commercialisation of those technologies from small and medium-sized enterprises are not lost. The UK must be bold. The crucial point here is that technologies continue to develop. UK companies should be encouraged to lead on that activity, and the UK should give clear support to those companies.
The Environmental Audit Committee, on which I sit, is due to launch its inquiry on net zero aviation and shipping before the summer recess. We will agree the terms of reference next week. Although I do not wish to pre-empt the work of the Committee, it is likely that we will want to examine the role, if any, that the Government can take in achieving net zero in this space. So, as they say, watch this space.
The Government must ensure that regional airports such as Cornwall airport Newquay are supported so that they can survive what is a dark period for them. They are essential to connecting people in Cornwall with the rest of country. We should not look to stop aviation travel, as I hear in some quarters, but should ensure that innovation creates a net zero industry in time.
My erstwhile council, Highland Council, on which I had the honour to serve for a number of years, does not have the deepest pockets in the United Kingdom, but it has, very much to its credit, come up with an offer of £300,000 per annum, but we have a shortfall. So, Ms McVey, my request is simple, and you can imagine what is coming. I would be deeply grateful if Ministers agreed to meet me, and probably Mr Raymond Bremner, chairman of the airport committee, to talk about how we could establish a joint funding package for a PSO that ensured the future prosperity of Wick airport.
This is my final point. If we can increase the flow of passengers through Wick airport, that is good for the economy of the country and it is good for the local economy. Part of keeping the United Kingdom united, frankly, is to have all the airports working with each other across the length and breadth of the country, all the way from Cornwall at the bottom of the country to Caithness at the top of the United Kingdom.
It is important that other hon. Members have time to speak in the debate about their own airports, so I have one final point. It is a plea from all of us for help on the pandemic. We are all hoping that we can come out of the pandemic as rapidly as possible, that people can start travelling again and enjoying their foreign holidays, and that we can maintain the level of jobs in our aviation sector. I still believe that will take some time and we have to be realistic, and therefore, communities that are dependent on aviation, on their local airports and on the aviation sector will need continuing support. I am worried about the run-down and closure of the furlough scheme.
The sector needs special assistance and our communities need longer term strategic support, particularly if jobs are to be shed in the sector. We need to ensure that we have a comprehensive strategy for the workers who will be displaced. That means investment in training and in developing local economies, which will be based on new high-paid, high-skilled jobs, particularly in artificial intelligence and technology, because many of our constituents who work in the aviation sector are highly trained. This is a time to stand back, put in motion some urgent measures to deal with the pandemic and then look at a long-term, stable aviation strategy that contributes to our economy and to tackling the existential threat of climate change.
East Midlands airport also plays a key role in our wider economic plans, for example our freeport. It is a unique proposition—an inland freeport, based on customs tax incentives that will attract business to our region—but clearly East Midlands airport is the key to delivery of that proposal. I very much welcome the support that East Midlands airport as a business and its chief executive, Clare James, are giving to that plan and the work they are doing in trying to put that business case together and deliver it.
With our development corporation sitting alongside that plan, we have an incredible and highly attractive opportunity to masterplan these sites and to build something positive in terms of future-facing jobs and growth for our region, which will make it a highly attractive prospect for business to invest in. East Midlands airport is key to the delivery of all that.
As I have said, in my part of the country East Midlands airport is vital to our connectivity and our economic growth; it would be hugely challenging to deliver a levelling-up agenda in the east midlands without a strong East Midlands airport. We have the potential through our freeport to play the role in the heart of the country of connecting together other freeports around the UK, and to play a role, as we already do in the region, in central logistics; I think that 90% of the country is within four hours of East Midlands airport. The airport has huge potential, if we can help it to survive these very difficult times and if we can support it as part of our wider economic plans.
A couple of key decisions will be made later this year: the integrated rail plan and planning for our development corporation have the potential to kickstart a huge boost and a huge step forward for our regional economy, if—and only if—we are able to support our regional airports to continue to offer the current £300 million a year gross value added, which is a huge uplift for other businesses, and if we are able to support the 9,000 people who work on site at East Midlands airport. EMA needs certainty on international travel. I hope that in his statement later in the week, the Secretary of State will be able to offer some of that certainty and a boost to our regional airports around the whole of the UK.
In summary, regional airports such as East Midlands airport will be key if the Government are to be able to deliver on the levelling-up agenda, to grow our economies and to create good, sustainable and well-paid jobs in the future. I urge the Minister to do everything he can to support East Midlands airport.
It is widely accepted that airports are, therefore, looking at elevated costs for the next few years at least, if not longer. With travel demand likely to remain weaker in the short term, due to ongoing restrictions and travel hesitancy, they cannot pass those costs on to airlines, nor would it be fair to do so. A level of ongoing, bespoke financial support to cover those costs should, therefore, be provided by Government, as we transition to the recovery phase.
The airport and ground operations support scheme provides some relief but a longer term and more extensive commitment is clearly needed. Ministers must urgently bring forward the long-delayed aviation recovery plan, and start thinking in earnest about linking the need for ongoing support to our wider goals as a country on climate change and sustainability. The immense problems airports are facing are due to factors entirely beyond their control. They are the result of understandable regulatory interventions from Governments, to prevent the spread of the virus, which include travel bans, traffic light lists and quarantine periods. From the Government’s announcements over the past couple of days, it seems as though aviation will be the sole industry to remain under restrictions.
Ministers like to talk about their £7 billion package of support, but only a very small amount of that has been sector specific. Other European Governments have provided much greater levels of financial support for their aviation industries, and have specifically linked that support to meeting climate goals, something the UK has also refused to do. A big chunk of that Government support will end in two months’ time, when the job retention scheme winds up. That scheme has been a lifeline for aviation workers currently on furlough, along with 51% of those working for tour operators. The Chancellor has been adamant that he will not consider continued sector-specific support for jobs. Unless he has a change of heart, significant redundancies will become stark reality for many in Newcastle, where Newcastle airport is a significant local employer. The loss of expertise will leave us with a less dynamic aviation sector when the recovery comes.
In 20 years, we will look back on the past year as a pivotal moment for UK aviation that will have long-term consequences. The covid-19 pandemic and the Government’s lack of support have crippled airports’ balance sheets. That will have a long-term effect on their ability to invest and create a sustainable future. It may not seem like much of an issue while international travel remains extremely limited, but problems are being stored up for when the recovery comes. The north-east needs Newcastle airport to thrive, to increase global connectivity and to drive our region’s growth and development. We need a clear road map from the Government for the safe resumption of international travel. Particularly if aviation is to continue to remain under restrictions, we urgently need the long overdue aviation recovery plan, alongside a comprehensive package of sector-specific support.
Taken together, that meant that the economic output for the air transport sector between February and December 2020 reduced by 89%. That is phenomenal and really shows the magnitude of the pressure on the sector. I am not a wealthy man and I do not come from a wealthy background, but I cannot imagine that anyone other than the very wealthiest in this country could afford to cut their income by 89%. It would be impossible to manage. Yes, furlough has helped and I thank the Government for all they have done with the furlough scheme, the grants and the assistance. But the fact is that regional airports are at crisis point and need help to get through and out the other side, where hopefully we will find ourselves in a better position. We will, but we are all asking just when that will happen.
It is nobody’s fault, either. It is always very easy to point the finger but Government cannot respond to something that is not within their control. I asked the Secretary of State for Transport the other week how we can give confidence to travellers who want to go on holiday. But that is not within his control; it is controlled by all the other countries. It is hard for him to say, “I can tell you what is going to happen and give confidence to your constituents that they can travel to the States or Europe or wherever else they want to go and return safely.” Between April and September 2020, UK airports lost £2.6 billion in revenue, with passenger numbers peaking at 22.1% of 2019 levels in August 2020—up some 11.6% from July, but falling dramatically afterwards. On the current trajectory, summer 2021 will see significantly fewer passengers, meaning airports will lose at least another £2.6 billion in revenue.
We had hoped that we would be coming out of this situation this summer. The Government have set the trend. The Prime Minister’s statement was welcome because, as he said and as the Government’s strategy now seems to be, we need to live with covid and deal with it in such a way that life can hopefully resume as normally as possible. What can we do to alter this situation? We must look at how other nations handle their flight systems and how they treat those coming to their borders who are fully vaccinated. Perhaps the Minister and the Government are seeing a developing trend for how to deal with that.
Regional airports are clear on what they need. The Airport Operators Association briefing puts it well. Support measures should be extended. Office for National Statistics figures show that 57% of aviation jobs are currently furloughed, so the job retention scheme should be extended beyond 30 September for jobs in aviation and travel, or replaced by another grant scheme that supports such jobs beyond that. The restrictions are having an impact on regional airports as well as on international travel—they cannot be divorced. If we in Northern Ireland want to catch international flights, we have to go to Dublin in the Republic of Ireland, or to Manchester or Heathrow. If international flights are cut back, that will have an impact on regional airports and domestic travel.
The airport and ground operations support scheme should be extended beyond 30 September, and the £8 million gap should be removed. Currently, AGOSS provides only minimal financial support of £8 million at most—equivalent to the total business rate bill for airports. AGOSS grants cover fewer than 14 days’ worth of an airport’s operational losses, so they do not last long. Further financial support should be put in place, because airports remain open for critical services. We have to remember that it is not all about domestic travel; it is about the coastguard, the police, the air ambulances and maintenance for offshore oil gas and windfarms, despite near zero passenger numbers. This support should cover operational costs, including those for policing and air traffic, and regulatory costs such as the charges levelled by the Civil Aviation Authority. I gently and respectfully ask that consideration be given to that, because there are things that have to happen for the emergency services and for workers. The hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) referred to that, and I know that the Scottish National party spokesperson, the hon. Member for Paisley and Renfrewshire North, will do so, too.
It is essential that we protect the viability of airports, especially in Northern Ireland, and indeed in all the regions of Wales and Scotland that are hampered by their distance from the mainland. We are very much an integral part of the United Kingdom of Great Britain and Northern Ireland—I am always keen to put that on the record—and as such should be fully integrated in the decision making on the way forward. I join others in asking the Government and the Minister to step up and step out for this sector by providing long-term support in a clear and defined way to ensure viability and connectivity long beyond this debate.