Queen’s Speech airline insolvency announcement – R3 response

10 October 2019

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."