* ON THE SOAPBOX: Lord (Patrick) McLoughlin - Chairman Airlines UK

Patrick McLoughlin (65) is somewhat unique as far as the House of Lords is concerned having worked underground as a miner.  He was the Conservative Secretary of State for Transport 2012-2016 and did not stand in the 2019 election, being elevated to the House of Lords as a Life Peer.  He is also Chairman of Visit Britain and Transport from the North.

This same time last year, the aviation sector was at last looking forward to a post-pandemic world as Covid-19 restrictions were being eased, slowly and cautiously, and as demand started to strengthen. That was, until the Omicron variant appeared – bringing back sweeping travel restrictions and further prolonging the crisis for UK aviation and airlines into 2022.

Fast forward to today, one year later. Notwithstanding recruitment and operational challenges in the early summer, it’s been fantastic to see a sustained recovery since the Omicron related restrictions were eased in the spring. There is absolutely no doubt that people and businesses were yearning to travel again.

As we head towards 2023, the aviation sector is again looking to the future, as it must.

No one wants to see the kind of disruption that, regrettably, too many travellers experienced earlier in the year, as the aviation ecosystem ramped up after being in the doldrums for so long and was, in places, unable to meet demand. This is why we are working in partnership with Government on schemes like Generation Aviation, launched in October, to ensure that the sector has the skilled and resilient workforce needed to meet growing demand and secure the recovery, as we head towards the critical Christmas season.

This is vital not just to airlines and the people we carry but to the whole UK economy, given the huge economic advantages that aviation brings to the UK as a trading island nation. Some 40% of the value of our trade is carried via air, most of it in the bellyhold of passenger planes on long-haul commercial routes.

As we emerge from the pandemic, UK airlines will continue to make the case for why a thriving airlines sector – and the domestic and international connectivity we deliver – matters to everyone. This includes via the new Department for Transport-led Aviation Council, which meets in early January to discuss the next steps for aviation policy over the next 18 months, through to the next General Election, and beyond.

But we do know that the long-term recovery and strength of the sector is ultimately dependent on decarbonising our operations. It is truly an existential question for us all, across all parts of the sector. This year, the Farnborough Air Show took place on the hottest day ever recorded in the UK and was an unavoidable reminder of why aviation must play its full part in delivering a net zero economy. I’m pleased to say this is a goal that the whole global aviation sector is fully committed to.

UK aviation pledged in 2020 to achieve net zero emissions by 2050, a bold and necessary ambition which has now been matched by the rest of the world, including national governments at the recent ICAO general assembly in Montreal. We have the tools to do it – we know that through the use of sustainable aviation fuels (SAF), new zero emission technologies and airspace modernisation, we can reach net zero whilst keeping the world connected.

The priority now is delivery, and for industry to work with government to drive the commercialisation and deployment of these low and zero carbon solutions at scale. Previously, many of these technologies would undoubtedly have gained ground over time, as market forces played their part. However, we are up against the clock and simply do not have time to wait, which is why we need a dynamic and energetic public private partnership to deliver policies and funding that will drive private investment into things like SAF production.

Here in the UK, we have seen real leadership from Government on SAF, committing to seeing plants under construction by the middle of this decade and a mandate in place that will deliver 10% SAF in the fuel mix by 2030. But we cannot hope to see these plants up and running – with Final Investment Decisions being taken – without some element of price certainly being announced to give reassurance to investors that there will be a return on their investment. With no current market price for UK SAF, this is vital. That’s why we’re calling for a price stability mechanism, for example a Contracts for Difference policy, that will deliver this signal to the investment community that the UK is serious about a homegrown SAF industry, with all the levelling-up, jobs and energy security gains that will follow.

Aviation remains a force for good, and today we can look ahead with the pandemic increasingly in the rear-view mirror. This won’t mean standing still – creating a net zero aviation sector is the next – and perhaps biggest – challenge of all, but we stand ready to work, truly, in partnership with Government to make it a reality.

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John Oats,

Well said Patrick. You are in the post for four years and had previous time. At Airlines UK you have a new platform