To ask the Secretary of State for Transport, what assessment his Department has made of the effect of the severe downturn in the aviation industry due to the covid-19 outbreak on the wider economy.
1 March 2021
Before Covid-19, aviation directly contributed at least £22 billion to GDP to the UK economy and supported around half a million jobs. This included the air transport and aerospace sectors, as well as the wider supply chain. Since the outbreak of Covid-19, the aviation sector has been one of the worst affected sectors in the UK. Passenger numbers at UK airports fell by 99% at the height of the pandemic. Overall volumes of flight traffic in the UK is currently around 80% below equivalent 2019 levels. The air transport sector’s contribution to the UK economy dropped by 74% in 2020 compared to 2019 and tens of thousands of redundancy notifications have been made. In addition to the direct impact to the UK air transport sector, the wider supply-chain and economy has also been adversely impacted by the severe reduction in air passenger demand, jobs and air connectivity, with impacts on consumer spending and investment across the rest of the economy.
The Department recognises the severe impact the COVID-19 pandemic has had on travel, and work continues to understand how best the industry can be supported at this time. The Government is working on a strategic framework for the recovery of the sector. It will explore the return to growth of the aviation sector, and will include consideration of workforce and skills, regional connectivity, noise, innovation and regulation, and consumer issues.
Aviation businesses have access to the unprecedented economic support package that the Chancellor has put in place to help businesses to manage the challenges they are facing as a result of the COVID-19 pandemic.
In addition to this, the Airport and Ground Operations Support Scheme (AGOSS) opened for applications on 29 January to provide support for eligible commercial airports and ground handlers in England.
In addition, through the Global Travel Taskforce, the Government will work closely with the industry to find ways to safely and gradually ease restrictions on international travel. We will set out more detail on this soon.