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My Lords, I have the deepest respect for my noble friend Lord Harper, but three former Secretaries of State for Transport took a different view from the one the noble Lord has just read out. When NATS makes mistakes, the airlines pick up the tab. Last week, the airlines had...
My Lords, I have the deepest respect for my noble friend Lord Harper, but three former Secretaries of State for Transport took a different view from the one the noble Lord has just read out. When NATS makes mistakes, the airlines pick up the tab. Last week, the airlines had...
My Lords, I am grateful to my noble friend for that trailer. The reason behind Amendment 65 in my name is what happened
on 28 August 2023, when the air traffic system run by NATS failed. There was an independent review which looked into the debacle, and I want to...
My Lords, I am grateful to my noble friend for that trailer. The reason behind Amendment 65 in my name is what happened
on 28 August 2023, when the air traffic system run by NATS failed. There was an independent review which looked into the debacle, and I want to...
Moved by
Lord Young of Cookham
65: After Clause 9, insert the following new Clause—
“Compensation reimbursement scheme for airlines
After section 9 of the Transport Act 2000 (power to exclude services from effect of section 8) insert—
“9A Reimbursement of passenger compensation payments
(1) A licence holder must establish and maintain a scheme for the...
Moved by
Lord Young of Cookham
65: After Clause 9, insert the following new Clause—
“Compensation reimbursement scheme for airlines
After section 9 of the Transport Act 2000 (power to exclude services from effect of section 8) insert—
“9A Reimbursement of passenger compensation payments
(1) A licence holder must establish and maintain a scheme for the...
My Lords, I will be brief. I am grateful to all those who supported Amendment 65 several hours ago. I am grateful to the Minister for replying and I recognise that his hands were tied. My noble friend Lord Moylan said that the Minister played his trump card by quoting...
My Lords, I will be brief. I am grateful to all those who supported Amendment 65 several hours ago. I am grateful to the Minister for replying and I recognise that his hands were tied. My noble friend Lord Moylan said that the Minister played his trump card by quoting...
To ask His Majesty's Government whether NATS Holdings will be required to compensate airlines for the consequences of its IT failure last year.
To ask His Majesty's Government whether NATS Holdings will be required to compensate airlines for the consequences of its IT failure last year.
The Government regrets the NATS operational failure and the impact this had on airlines and their customers. The Independent Review into this incident has now concluded and lessons will be learned. NATS is regulated against service targets set by the Civil Aviation Authority. There are annual incentives for NATS linked to its performance so if this falls below target levels it may incur penalties. However, NATS is not penalised for individual incidents such as the technical failure of August 2023.
My Lords, a fortnight ago, I asked my noble friend whether NATS should be liable to pay compensation for its failures in the same way as the airlines are, but she resisted. In defence, she said that NATS’ licence conditions allow penalties to be imposed for its failures. However, in a Written Answer, my noble friend told me that over the past five years, those penalties amounted only to £600,000, whereas this month the airlines have had to pay £100 million for NATS’ failures. Surely NATS should have to pay compensation in the same way as the airlines.
My Lords, a fortnight ago, I asked my noble friend whether NATS should be liable to pay compensation for its failures in the same way as the airlines are, but she resisted. In defence, she said that NATS’ licence conditions allow penalties to be imposed for its failures. However, in a Written Answer, my noble friend told me that over the past five years, those penalties amounted only to £600,000, whereas this month the airlines have had to pay £100 million for NATS’ failures. Surely NATS should have to pay compensation in the same way as the airlines.
I thank my noble friend for his continued questions on this matter. There are 55 licensed air navigation service providers in the UK. I am not saying that all of them could look after Gatwick, because it is incredibly complicated, but it is a commercial operation, entirely separate and different from what happens in upper air space, which is what I think my noble friend was questioning me about last week. There is a contractual arrangement between the airport and NATS which will include service level agreements and, I am sure, financial penalties, but it is a commercial matter of which the Government do not have oversight.
To ask His Majesty's Government what penalties have been incurred by NATS Holdings for failure to meet service targets in each of the past five years.
To ask His Majesty's Government what penalties have been incurred by NATS Holdings for failure to meet service targets in each of the past five years.
The Civil Aviation Authority (CAA) sets targets and financial incentives on NATS (En Route) Plc’s service quality for three measures related to delays - average delay, peak delay and delay impact score and one environmental measure relating to flight efficiency. In the Reference Period (RP) 2 period (2015-2019), penalties were applied in relation to NERL’s delay performance for both 2016 (£0.42 million) and 2018 (£0.26 million) where it contributed to delays that were above its target levels.
My Lords, last week 2,000 flights were cancelled because of NATS’s inability to process flight plans, and a quarter of a million passengers were grounded. When airlines are responsible for delays, they must pay compensation to the passenger and pay for alternative flights, accommodation and food. When NATS is responsible for delays, no compensation is payable at all—and, worse, the airlines have to pick up the bill for alternative flights, food and accommodation, which, in this case, was £100 million. Both NATS and the airlines are commercial companies—NATS had a profit of £150 million last year—so is not the differential compensation between NATS, on the one hand, and airlines, on the other, wholly indefensible?
My Lords, last week 2,000 flights were cancelled because of NATS’s inability to process flight plans, and a quarter of a million passengers were grounded. When airlines are responsible for delays, they must pay compensation to the passenger and pay for alternative flights, accommodation and food. When NATS is responsible for delays, no compensation is payable at all—and, worse, the airlines have to pick up the bill for alternative flights, food and accommodation, which, in this case, was £100 million. Both NATS and the airlines are commercial companies—NATS had a profit of £150 million last year—so is not the differential compensation between NATS, on the one hand, and airlines, on the other, wholly indefensible?
I am grateful to my noble friend for highlighting this issue, but I am afraid that I do not accept the premise that the two are comparable. There are elements in NATS’s current licence that allow financial penalties to be placed on it in the instances of poor performance. Indeed, as I stated in my first Answer, there is also a mechanism to reduce charges in subsequent years to the airlines because of poor performance. However, I would say that the event that happened was, thankfully, very rare; nothing similar had been seen for over 10 years. Therefore, we are very grateful for the work that the airlines did, and we worked closely with them to repatriate people as necessary.
To ask His Majesty’s Government what assessment they have made of the case for making National Air Traffic Services liable to pay compensation to customers for operational failure.
To ask His Majesty’s Government what assessment they have made of the case for making National Air Traffic Services liable to pay compensation to customers for operational failure.
My Lords, the Government deeply regret the recent NATS operational failure and its impact on airlines and their customers. The incident is being investigated and lessons will be learned. NATS has an outstanding aviation safety record and is regulated against service targets set by the Civil Aviation Authority. There are incentives for NATS linked to its performance; failure to reach target levels may incur penalties and reduce the charges paid by airlines.
Adjournment debate on new flight paths into Southampton and Bournemouth airports.
Adjournment debate on new flight paths into Southampton and Bournemouth airports.
I am sorry to arrest the Minister in mid flight, but would he be concerned if the guidance that his Department had set out, which needs to be pursued for proposals such as this one, had not been followed?
I am sorry to arrest the Minister in mid flight, but would he be concerned if the guidance that his Department had set out, which needs to be pursued for proposals such as this one, had not been followed?
I am glad that I gave my hon. Friend a slot, so that his intervention could land safely. It was well made, and underlines the point that the new flight path, once granted, could cope with a greater volume of traffic than the one on which the consultation paper was...
I am glad that I gave my hon. Friend a slot, so that his intervention could land safely. It was well made, and underlines the point that the new flight path, once granted, could cope with a greater volume of traffic than the one on which the consultation paper was...
My right hon. and learned Friend is absolutely right. There is less protection for what may be a noisier development than there is for the developments that he has just described. Indeed, he has put his finger on a point that was in the Government's White Paper, ““A better quality...
My right hon. and learned Friend is absolutely right. There is less protection for what may be a noisier development than there is for the developments that he has just described. Indeed, he has put his finger on a point that was in the Government's White Paper, ““A better quality...
I welcome this opportunity to raise in the House my constituents' concern about proposals for a new flight path into Southampton and Bournemouth airports. NATS—National Air Traffic Services—has proposed additional controlled airspace from Newbury to Romsey, where aircraft may fly as low as 5,500 ft. Flights would be permitted between...
I welcome this opportunity to raise in the House my constituents' concern about proposals for a new flight path into Southampton and Bournemouth airports. NATS—National Air Traffic Services—has proposed additional controlled airspace from Newbury to Romsey, where aircraft may fly as low as 5,500 ft. Flights would be permitted between...
I sense that the Under-Secretary is about to touch down. Surely if a national park authority makes representations against a proposal such as the one that we are considering, he would expect the CAA to touch base with a Department before ticking it through?
I sense that the Under-Secretary is about to touch down. Surely if a national park authority makes representations against a proposal such as the one that we are considering, he would expect the CAA to touch base with a Department before ticking it through?