Come fly with me, just make sure you have 14 days to spare: an insight into the lawfulness of the recent UK travel regulations
Wednesday 17th June 2020
Following Simon Dolan’s lead, three major UK and Ireland-based airlines (British Airways, EasyJet and Ryanair) have filed for a judicial review claim against the UK government, challenging the lawfulness of the recently implemented travel regulation guidelines. In early June the government announced that they would be implementing a 2-week quarantine period, notably months later than the majority of Europe, and this impacts passengers arriving in the UK by plane, ferry or train.
The judicial review proceedings are being launched on the grounds of disproportional measures, irrationality and the government acting beyond the powers granted to it by the 1984 Public Health Act. The challenge emphasises the general discontent towards the “one size fits all” approach that the government has seemingly adopted, by placing what some would perceive to be excessive measures on the general population months after the pandemic was at its peak in the UK. It must be noted, however, that there are some exceptions made under the Health Protection (Coronavirus, International Travel) (England) Regulations 2020, excluding a minority of people from the regulations.
The case is particularly significant to the travel industry as coronavirus has undeniably hit airlines hard. With BA proposing to make 12,000 staff redundant, Ryanair planning on making 15% of its workforce redundant and EasyJet also cutting around 4,500 jobs; there is a vested interested in the judicial review challenge succeeding. Many airlines were planning on opening up a small number of routes in June and July, with Ryanair planning on reintroducing 40% of its flights from 1st July, but the travel regulations may slow the re-emergence of this sector, damaging the state of aviation even more. With most of Europe, South East Asia and Australasia starting to open up their borders and looking to establish ‘air bridges’ between COVID-free countries, it is curious that the government has pushed forward with introducing largely unenforceable travel regulations now, particularly with the foreseeable opening of the hospitality industry within the UK.
The news of the challenge follows shortly after Simon Dolan (a business tycoon closely connected with the aviation industry) launched a claim in May against the government. In response to the challenge, the government not only publicly released Scientific Advisory Group for Emergencies (SAGE) minutes, but last Friday they filed their defence against the claim. The public scrutiny that the challenge has generated has also pushed the government into admitting the lack of legal basis for closing down schools, admitting that it was a recommendation.
The judicial review challenges arising from the UK’s coronavirus response will undoubtedly lead to more accountability and transparency in the decision-making process of the government, as there is not only a vested interest from the aviation industry, but also the general public – a point proven by the funding generated to further Dolan’s judicial review challenge.
The current state of the aviation industry
Ryanair CEO Michael O’Leary has been quick to point out that recovery will be slow, and that small airlines who are not being bailed out by government aid could be subject to predatory acquisitions from larger competitors: "What's clearly happening is we have the French and the Germans creating a huge fund - billions in state aid - that will allow them to either low-cost sell against the likes of Ryanair during the recovery period or allow them to engage in mergers and acquisitions and buy up all their weaker competitors when this is over”.
UK-based airlines will struggle in the foreseeable future, perhaps more so than their European counterparts, as plans to open up routes may be slower than initially predicted. With Thai Airways undergoing restructuring and the likes of Alitalia receiving huge government subsidies (€3 billion in this case), the entire industry is struggling but even more fractures are starting to emerge in the UK. An example is Sir Stelios Haji-Ioannou (the founder of EasyJet) selling a £13m stake in the company after a lengthy and public row with the board of directors.
This example uncovers a deeper thread of unease around the longer-term holistic approach that many companies have taken in regard to the future of their airlines. British Airways has recently come under fire for plans to make staff redundant despite having received nearly £35m from the government, as of 14 May, by furloughing 22,000 staff (figure published by the House of Commons Transport Select Committee). Whether the treatment of staff comes into play in future consumer patterns will have to be seen over the next few months, but the heavy scrutiny of ethics within the aviation industry at the moment is not insignificant.
China is launching a new airline
Despite the recent outbreak of COVID-19 in Beijing, it is clear that China is one of the countries investing in a long-term recovery plan as China Eastern (China’s second-largest airline) looks to launch a new carrier in order to generate more tourism in Hainan.
Whilst it is a contentious time to be investing in such an expensive expansion, this shows that recovery in the tourism and aviation industries will happen at a staggered rate across the world. The aviation industry is being hit by more setbacks in the UK, but countries that were hit by the pandemic in the early months of 2020 are pushing to recover now as they pass their coronavirus peaks.