BUSINESS NEWS
The chancellor told airlines this week: ‘Further taxpayer support would only be possible if all commercial avenues have been fully explored’
Chancellor rejects calls for bailout of UK airlines
Sunak says any terms for carriers would need to protect taxpayers. By Ian Taylor
The chancellor dashed UK aviation leaders’ hopes of a general bailout of the sector on Tuesday, but pledged to consider “bespoke support as a last resort” for individual airlines. Leading carriers jointly submitted a
series of requests for emergency funds, tax deferrals and credit guarantees last week, with Department for Transport (DfT) officials reportedly “stunned” to learn how rapidly airlines could run out of cash. Representatives of easyJet, British Airways owner IAG, Ryanair and
40 26 MARCH 2020
Virgin Atlantic met transport secretary Grant Shapps to urge support. Virgin Group chairman Richard
Branson suggested the carriers needed up to £7.5 billion to survive. However, US airlines are pressing the US government for $50 billion. An industry source noted on
Tuesday: “Within 48 hours, all airline schedules will collapse to nothing. Then the issue for airlines will be liquidity.” Airline bosses have sought a
multibillion-pound state-backed credit
facility, a freeze on air traffic control charges, a suspension of air passenger compensation rules, temporary cancellation of APD and financial guarantees to release payments held by credit card companies. Chancellor Rishi Sunak responded
on Tuesday in a letter to the industry noting the measures already taken to support large companies and said: “Further taxpayer support would
Continued on page 38
travelweekly.co.uk
BUSINESS NEWS
PICTURES: Shutterstock
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44
