Flybe

Part of 3. Topical Questions – in the Senedd at 3:40 pm on 15 January 2020.

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Photo of Ken Skates Ken Skates Labour 3:40, 15 January 2020

Can I thank David Rowlands for his questions and his comments? I'd agree that the situation faced by Flybe is very different to the situation that Thomas Cook faced. It's absolutely vital that Flybe was assisted in the way that it appears it has been. We don't know the details of exactly how much APD has been deferred. I've also seen reports suggesting that it's in the region of £100 million. This is not a cash giveaway to Flybe; this is vital support that will give it breathing space and enable the owners to be able to inject capital into the business in order to make it viable for the long term. 

It's a rather interesting fact that there has never been a year in the history of passenger aviation in which the aviation industry has actually made a profit on the whole. Every single year sees winners and losers, sees losses and profits, but not in a single year has there been a net profit within the passenger aviation history. That shows how difficult an area of activity passenger aviation is. It shows how competitive it is as well. And it also demonstrates why intervention is, sometimes, required by Governments. 

It's also interesting that, generally, I think British people believe that airports should be in private ownership and only in the hands of private owners, but the fact of the matter is that 86 per cent of the world's airports where passengers are able to fly in and out of are owned by the public sector, and 14 per cent have a private interest in them. It demonstrates, therefore, why the Welsh Government again was right to save Cardiff Airport and maintain its interests in this crucially important piece of infrastructure.

With regard to the support offered to Flybe, it will enable that particular airline to offer services, not just in terms of flights from the UK to Europe, but also flights that ensure communities within Britain are better connected with one another, to ensure that people from more distant parts of the UK are able to travel long haul from our key strategic hubs like Manchester, Heathrow and other major airports. It's absolutely vital, I think, that as we consider the future of air passenger duty, we do so in a way that shows respect to devolved functions and the ability of the Welsh Government to utilise APD in order to inspire and support further growth at Cardiff Airport.