Department For Transport
Introduction
Its a pleasure to be here, delivering my first aviation speech since becoming Transport Secretary.
You could be forgiven over the last year for thinking you perhaps have heard ministers using that line before. Its been frustrating, I know, for an industry eager to get on with the business of growthespecially after the devastating impact of of the Covid pandemic over the last few years.
So let me start by thanking all of you, not just for the hard work airports continued to do amidst last years political and economic turbulence, and thats turbulence which Im very pleased that this government led by this Prime Minister has ended, but also for the collaboration Ive seen in the face of ongoing strike action at our borders. And I know youve heard earlier from Phil Douglas, the Director General of Border Force. And my department and Border Force have been working very closely with airports to make sure we have resourcing available and we minimise the disruption to the travelling public from that industrial action.
I would also like to acknowledge the recent unfortunate news about the collapse of Flybe and our thoughts are obviously with those affected. Were working in the department with the Civil Aviation Authority (CAA) to help the passengers affected to access alternative travel arrangements, and pointing staff to the support available from the Department for Work and Pensions (DWP).
But I was also very pleased by the sectors quick response not only with Ryanair, British Airways and EasyJet, stepping in with special fares for those passengers disrupted, but also the industrys announcements around fast tracking recruitment processes, for the staff who sadly lost their jobs. All are actually welcome signs of a growing resilience within the sector and youre focused on ensuring that you can retain and attract the skills and talent necessary for this industry to continue growing.
Its been 6 years since I was last in government. When I was last in government, aviations challenge wasnt about whether it would grow.it was about by how much.and about whether the industry could keep pace with the rising demand. Pre-pandemic, we had the largest aviation sector in Europe with air transport and aerospace worth 22 billion to our national economy, providing nearly a quarter of a million jobs. Passenger numbers at UK airports had grown by over a third since 2009 and the eve of the pandemic saw the highest number ever.
Recovery
That conversation, however, quickly changed. And the last few years have been the toughest in this industrys 100-year history. Where UK airports saw a 99% drop in passenger numbers at the height of the pandemic and globally, the sector faced a fall in passenger revenue of over 250 billion in 2021.
Some of you may know that as a backbencher I watched that unfold. I led a group of MPs who wanted a balanced approach to COVID-19 restrictions. Outside of government, I felt one of the jobs of MPs was to hold the government to account, and ask tough questions about policy to make sure we made the right decisions. We did obviously have a duty to protect public health, but we also had a duty to business and workers. And the Prime Minister, while he was Chancellor, obviously put in a significant package of support for the economy.
Every restriction introduced also needed a proper exit plan, so that we could safeguard both lives and livelihoods. And that was I think the right approachand we put something like 8 billion into the aviation sectorand we moved further and faster than any other nation in re-opening our economy and borders as soon as it was safe to do so.
Since then, and thanks to many in this room, weve managed to make sure that aviation, arguably the sector hardest hit by the pandemic, is showing robust signs of recovery. I know for example that Gatwick and Luton both will submit applications for modernisation and expansion programmes. Investments which represent a vote of confidence in aviations future. If approved, are set to generate significant benefits for passengers..
Were also seeing consistently busier airports and fuller flights, with passenger levels now at 85% of pre-pandemic levels. And where the industry struggled to meet this increased demand last year, the government stepped in, working with you to rebuild resilience.
For example, our passenger charter gave the public confidence to travel. We accelerated the vetting process to speed up staff recruitment. But thats not all. Today (31 January 2023), I can confirm that slots rules will return to normal this summer. But were maintaining the safety net introduced during COVID-19 and airlines can hand back 5% of slots to help minimise last minute cancellations.
And I know some of you are trialling next generation security, so that this new technology will better detect prohibited items, allowing passengers to pass through security more swiftly. Just some of the measures that will not only support the sectors recovery, but help us turn recovery into renewal.
Aviation Council
What renewal looks like is the remit of the Aviation Council, which I will be launching tomorrow. The council brings the full force of industry and government to bear on 10 key issues. Setting the industry on course for long term success, ensuring aviation turns its back on an industrial model no longer fit for purpose and moves towards a more sustainable one, including modern infrastructure, cleaner energy and an increasingly diverse pool of skills and talent.
So let me take each of those in turn.
Modernisation
On modernisation pre-pandemic, thousands of aircraft navigated a complex network of routes to operate safely in our airspace. Mapped in the 1950s, this network has struggled to deal with the surge in growth of modern air travel. Causing delays for passengers as planes circle airports waiting to land. It affects local communities which suffer from excess noise and pollution and ultimately, it increases costs for the industry.
The CAA, last week, launched a refreshed version of its Aviation Modernisation Strategy, to strengthen and upgrade our invisible infrastructure in the skies.
Modernisation will mean quicker and quieter flights, more choice and value for passengers, and futureproofing our airspace to allow safe access for drones and even spacecraft. Something I didnt realise I had responsibility for before I started in this job, but having had the chance to authorise Spaceport Cornwall I realised thats also under my responsibilities. That plan is wholeheartedly backed by the government and weve provided 9.2 million in funding to support airports throughout this change.
Now I realise some in this room will be frustrated at the speed of progress. And while its right that any modernisation aligns with our world leading safety, security and environmental standards, the aviation minister will continue working closely with the CAA and airports involved to drive this forward.
Decarbonisation
A more efficient and cleaner airspace brings me onto arguably this industrys greatest challenge decarbonisation. At current rates, aviation will become one of largest carbon emitting sectors by 2050. I dont support the view that aviation must decline to meet our climate goals. But it must now earn the right to grow by weaning itself off fossil fuels. Its why weve developed the Jet Zero Strategy, which set a 2050 net zero target for the sector.
An ambitious, yes, but the early signs are encouraging, particularly around the use of sustainable aviation fuels (SAF). Take Virgin Atlantic, who this year, thanks to government funding, will conduct the first ever net zero transatlantic flight. Its Rolls Royce Trent 1000 engines will be powered by cooking oils that otherwise would have gone to waste. It will be a remarkable achievement, demonstrating UK leadership in an area that could support over 5,000 jobs by 2035.
Fuels are just one part of decarbonising the industry. Airports are also playing a crucial role, with many of you already setting ambitious net zero targets. Well soon publish our call for evidence on a 2040 target for net zero airport operations something David Silk will expand on when he speaks to you later today.
Skills and talent
Finally, let me turn to skills and talent. I recognise that the pandemic saw swathes of the workforce face disruption and the immediate priority is to retain that talent. Already, the aviation skills recruitment platform has helped over 1,500 people find jobs and training. But we cannot talk about building a sector fit for the future if our approach to recruiting talent remains stuck in the past.
When I was growing up back where I came from in a working-class household in Swindo