Back to listing

15/10/2019

Queen’s Speech airline insolvency announcement – R3 response

Duncan Swift, President of insolvency and restructuring trade body R3, comments on plans to reform airline insolvencies, which were announced in the Queen’s Speech:

“We sympathise with the Government’s wish to ‘keep the fleet flying’, but the feedback from our members is that this idea just isn’t practical: insolvency practitioners may be unwilling to take the risk of adopting this approach.

"There will be concerns over creditor attempts to impound planes overseas, risks to crew and passenger safety, insurance costs, and the question of how to pay for everything. Insolvency practitioners will be personally liable if anything goes wrong, too.

"It’s a superficially attractive option, but it’s a potentially redundant reform.”

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.