BUSINESS NEWS
Chancellor Rishi Sunak. Competition rules are said to be hindering the government’s scope to help individual airlines
Airlines lobby harder for funds from government
Failures appear inevitable without further government help. Ian Taylor reports
Airlines have ratcheted up calls for government financial aid, warning that UK-wide measures to support business, pay staff wages and guarantee £330 billion in credit “will not be enough”, In a letter to the chancellor signed
by almost 40 MPs, Airlines UK and the Airport Operators Association (AOA) called for “liquidity support where necessary, cost alleviations on a range of taxes and industry charges, [and] regulatory easements”. They urged: “Airlines, airports . . .
38 2 APRIL 2020
travel retailers and ground handlers have made clear the support they need. The government should review these measures urgently.” The call came as easyJet grounded
its entire fleet and revealed it is in “ongoing discussions with liquidity providers”, British Airways suspended all Gatwick operations, and airport ground handlers Swissport, WFS, dnata and Menzies warned they are close to collapse. Virgin Atlantic was this week seeking “hundreds of millions” in
government-secured loans, with other airlines poised to follow suit after chancellor Rishi Sunak ruled out hopes of a sector-wide bailout but pledged to consider “bespoke support as a last resort” for individual carriers. Sunak made clear support would
depend on carriers “having exhausted other options” and “terms structured to protect taxpayers’ interest”.
Continued on page 36
travelweekly.co.uk
BUSINESS NEWS
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