Aviation and Aerospace Call For Recovery Plan Following New Travel Ban

The UK’s Aviation and Aerospace industries will need a package of sectoral support measures to protect companies from the threat to their survival posed by the Covid-19 crisis, after tough new restrictions were imposed on travel.

We recognise the UK Government’s need to act in the face of a public health emergency. However, following the imposition by UK authorities of travel bans with limited exceptions and the suspension of all air corridors, ADS, Airlines UK, and the Airport Operators Association (AOA), have written to the Prime Minister and Chancellor to urge the Government to put an Aviation and Aerospace recovery plan in place.

The three organisations who together represent UK airlines, airports and aircraft manufacturers, have called for measures including financial support for companies affected, swift delivery of a more resilient testing system to support a resumption in international travel, and relief from levies, duties and charges.

ADS Chief Executive Paul Everitt said:

“Aviation and aerospace are among the worst affected sectors from this ongoing crisis, and any signs of recovery have been thrown into reverse by new restrictions on travel. Many companies now need specific support measures to survive and to avoid putting thousands more jobs at risk.

“In the long term, reaching our Jet Zero ambitions depend on a robust UK aerospace industry investing heavily in new technology, supported by Government.

“To achieve a strong overall economic recovery from this crisis the UK must sustain aviation and aerospace industries that connect us to global trading partners and provide vital jobs in every part of the country.”

Airport Operators Association Chief Executive Karen Dee said:

“Airports are major employers in their regions and engines of national and regional economic growth, vital to both the UK Government’s global Britain and levelling-up agendas. The near-total collapse of air traffic over the last twelve months is thus devastating for communities around airports and the UK as a whole.

“The Government’s lack of comprehensive support for aviation is effectively tying one of the UK’s hands behind its back – economic recovery will be more difficult and take longer.

“To ensure airports are in fighting condition to support the UK’s economic recovery, the Government must urgently set out the long-promised Aviation Recovery Package. Crucially, with travel bans in place for UK travellers across the globe – including now the EU, new and existing measures must be in place until there is a sustained restart of air traffic.”

Airlines UK Chief Executive Tim Alderslade said:

“With the lockdown, travel ban and now mandatory pre-departure testing, UK airlines start 2021 having taken one step forwards and two steps back. Without the ability to bring in critical revenue, there remains a limit to the amount of debt carriers can take on, having already done everything asked of them by the Chancellor and absorbed billions from private investors, banks and the Treasury.

“It’s vital that aviation receives the same kind of support as handed out to the hospitality industry, on the basis that trading has in effect been shut down; this means grants and further liquidity measures, ending the double taxation of domestic air travel though Air Passenger Duty, and an acceleration of the roll-out of rapid pre-departure testing and the vaccine.

“Ultimately, if we cannot re-open travel the future of UK aviation will be bleak indeed but we’re hopeful Government will step in and recognise its importance and contribution to UK plc, so we can continue delivering for passengers.”

This month UK flight volumes have fallen to around 80 per cent lower than comparable figures from 2019. Across Europe, air traffic numbers more than 60 per cent lower than pre-crisis levels.

There have already been 15,000 job losses in UK aerospace manufacturing linked to the impact of the pandemic on industry, while 30,000 job losses have been announced by UK airlines. The AOA estimates that total job losses across UK airports and associated businesses is likely to exceed 110,000.

The beginning of Covid vaccination programmes in the UK, Europe, and around the world provides the realistic prospect of a long-term sustainable recovery to begin this year. However, the severe immediate impact on sectors like aviation and aerospace, and the slow recovery expected in these industries, means additional support is now required.

ADS, Airlines UK and the AOA are calling for an Aviation and Aerospace Recovery Plan that provides short-term financial relief alongside a longer-term recovery framework as an urgent priority. This should include:

1. Relief from business rates for aviation and aerospace companies to assist with cashflow pressures and temporary removal of industry payments for CAA and other regulatory charges.
2. Measures to stimulate demand, support the viability of airlines and strengthen a recovery as restrictions are lifted. This should include a temporary suspension of Air Passenger Duty for 12 months, as and when aviation is ready to fly at scale, alongside the ending of the double APD charge for those who travel domestically in the UK. In addition, grants should be made available to airlines and further access to loans at pre-Covid rates.
3. Sector-focused support for companies affected by restrictions and further loss of demand, including access to the £500m discretionary fund and long-term investment funding for the aerospace supply chain.
4. Swift delivery of the recommendations from the Government’s Global Travel Taskforce, with a pathway to a more resilient, quicker and cheaper traveller testing system that eliminates or significantly reduces quarantine, working with international partners to prioritise key travel corridors and establish common testing protocols. This could include the Government subsidising testing costs for passengers.
5. A commitment to enhance the UK’s Jet Zero ambitions by increasing support for Sustainable Aviation Fuels and doubling funding for the Aerospace Technology Institute to underscore the long-term investment opportunities in the UK.

Notes to Editors

1. Daily air traffic variation data is published by Eurocontrol here.
2. ADS is the UK trade organisation representing the Aerospace, Defence, Security and Space sectors, with more than 1,100 member businesses.
3. Airlines UK is the trade body for UK registered airlines, with members representing all sectors of the industry.
4. The Airport Operators Association is the national voice of UK airports. Its members include over 50 airports and more than 150 Associate Members, made up of companies representing a wide range of suppliers in the aviation industry.

UK airlines respond to Government announcement on the removal of remaining travel corridors

“Travel corridors were a lifeline for the industry last summer and the Government were right to bring them in when they did. But things change and there’s no doubting this is a serious health emergency and Ministers need to act to keep borders safe and the public protected. We therefore support this latest measure, on the assumption that we will work with Government – when the time is right – to remove these restrictions when it is safe to do so and start to open up our sector again, to support the UK’s economic recovery.”  

UK airlines respond to Government announcement on pre-departure testing for arrivals beginning this Friday

Responding to the announcement by the Government that air passengers, from 4am on Friday, will be required to take a Covid test before travelling back to the UK, Tim Alderslade, Chief Executive of Airlines UK, the industry association representing UK-registered carriers, said:

“This is a national health emergency and Ministers need to act to keep the country safe. It is true that much of the sector has been lobbying for pre-departure testing – but this was always predicated on the Government removing or reducing the quarantine period at the same time. Now we have both quarantine and pre-departure testing. That’s why this new policy needs to be a time-limited, emergency measure only, in place not a second longer than necessary, and with a proper review mechanism once lockdown comes to an end. We cannot afford for this to be baked in over the whole Summer.

“The focus must be on returning travel to normal as quickly as possible and removing the need to quarantine or take a test as the UK population is vaccinated. Ideally, as the vaccination roll-out gathers pace and the most at-risk parts of the country are inoculated, we can start to see the economy, and travel, open up, which would enable the sector to have what will be a critical summer season for aviation.”

UK airlines respond to Government announcement on pre-departure testing for arrivals

Responding to the announcement by the Government that air passengers will be required to take a Covid test before travelling back to the UK, Tim Alderslade, Chief Executive of Airlines UK, the industry association representing UK-registered carriers, said:

“We recognise the UK Government’s need to act now and support the introduction of pre-departure testing in order to keep the country safe and borders open. However, this should be a short-term, emergency measure only and once the roll-out of the vaccine accelerates, the focus must be on returning travel to normal as quickly as possible in order to support the UK’s economic recovery. This includes removing the need to quarantine or test as the UK population is vaccinated and the virus is brought under control at home and abroad. Ultimately, cheaper and quicker testing is required to ensure travel can be accessible while testing is required but then needs to be unwound once vaccinations and the overall threat of Covid recedes.” 

UK airlines statement on EU Commission recommendation on restoration of essential travel between UK and EU

Responding to the recommendation from the European Commission that essential travel between the UK and EU should resume, Tim Alderslade, Chief Executive of Airlines UK, the industry association representing UK-registered carriers, said:

“We note the Commission’s guidance but clearly this now needs to be enacted by EU member states, who have so far put in place their own rules. It remains to be seen what action they will take but our position remains that testing rather than flight bans is the only way to facilitate travel and get the economy and aviation moving again.”

UK airlines welcome aviation testing regime announcement

Responding to the announcement by the Government that an aviation testing regime will be introduced from 15 December, Tim Alderslade, Chief Executive of Airlines UK, the industry association representing UK-registered carriers, said:

“This is a hugely welcome step that will begin the process of opening up international travel and restarting UK aviation. It is a good start and by more than halving the quarantine period we should see demand tentatively return and more routes and destinations become viable once again.

That said, a test at day 5 does not get rid of quarantine and that’s why we look forward to working with Government to move towards a pre-departure or domestic testing regime that can remove safely the need for self-isolation altogether, as quickly as possible. This is the only way we’re going to comprehensively reopen the market. But, with this announcement there is now light at the end of the tunnel not just for carriers and UK aviation but consumers looking to get away at Christmas and beyond.”  

UK airlines respond to furlough scheme extension

Responding to the announcement today by the Chancellor that the furlough scheme will be extended to the end of March, Tim Alderslade, Chief Executive of Airlines UK, the industry association representing UK-registered carriers, said:

“This is a welcome announcement and all the more important with aviation now essentially closed following the new lockdown travel restrictions. Furlough extension will enable carriers to retain more of the key staff and highly skilled roles that will be essential for when demand returns, but which otherwise would be at real risk.

“However, wage support covers only a portion of the high cost base airlines must cover simply to exist, and carriers face this new lockdown in a far weaker position than when the crisis started in March. Airlines – which have spent the past few months desperately cutting costs and taking on billions of pounds of collective additional debt – urgently need access to further liquidity measures to shore up their balance sheets, and the immediate introduction of a UK testing regime instead of blanket quarantine, to provide much needed certainty for customers so they can travel again with confidence.”