HC Deb 14 April 2003 vol 403 c583W
Mr. Wray

To ask the Secretary of State for Transport what aid has been given to airline companies since 11 September 2001; and what plans he has to give further financial assistance. [109134]

Mr. Jamieson

Following the closure of US, Israeli and central London airspace in the period immediately following the terrorist attacks on 11 September 2001, financial assistance totalling £39.7 million, authorised by the European Commission, was paid out to 11 UK airline companies in compensation.

It is Government policy that the aviation industry should cover its full operating costs, including those incurred through increased security arrangements following 11 September. To this extent, we have no current plans to provide any further financial assistance to the airline companies.

Following 11 September, the UK Government also underwrote, on a temporary basis, third party war risk insurance for UK airlines, airports and service providers to the airline industry. Although insurance against war and terrorism risks is currently available on the commercial market the Government remain prepared to intervene in the case of market failure—though there is no indication, at present, that this will be necessary.

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