Page 37 - World Airnews Magazine May 2020 Edition

AIRLINES

UK AVIATION INDUSTRY

RENEWS CALLS FOR

GOVERNMENT AID

By Linnea Ahlgren

STATEMENT REQUESTS staff wages and deferring some rates and

The joint statement is said to call for an tax payments.

he British aviation industry is set to extension of the Corona virus Job Retention As previously reported, Chancellor Rishi

Trenew its request for government scheme beyond the end of May. This would Sunak said in a letter to airline and airport

support in order to cope with the unprece- allow for support to keep paying 80% of executives that only “as a last resort” there

dented losses stemming from the outbreak furloughed staff’s wages beyond that point. could be talks with individual firms after
the measures according to the planned

In addition, it is asking that the aviation
of COVID-19. sector be included in the business rates scheme had been taken into account. He
A joint statement being prepared by the exemption given to companies in the hos- said he would not be rushed into a bailout

ADS, the trade organisation representing pitality and retail sectors, and for increased and that the airlines should first seek assis-

aerospace, defence,security and space flexibility of lending programmes. tance from investors and stakeholders.

industries in the UK is to call for ministers
to do more. They are also seeking to ensure that the TO BAIL OUT, OR NOT TO BAILOUT?
The statement is set to renew the government works with its counterparts Governments across the globe have
industry’s bid for emergency government “to ensure a co-ordinated approach is handled requests from airlines for bailout
taken to the lifting of travel restrictions
aid. It will call upon ministers to agree and other related measures to boost packages very differently. The US is
upon “better-coordinated measures” in consumer confidence”. finally set to pay some cash to its carriers
order to avoid the loss of tens of thou- to aid with payrolls, whereas Virgin
sands of jobs. CORONA VIRUS JOB RETENTION Australia and El Al have been denied their
The statement will ask for an extension SCHEME calls for support.
- both in duration and scope - of the Trea- UK airlines and airports, have called for a IATA has repeatedly called on govern-

sury’s range of financial support schemes. multibillion-pound emergency aid package, ments, across the board and individually,

Furthermore, it will argue that while: but have been told not to expect an indus- to support their beleaguered airlines. Some
“…other countries are acting decisively, try-wide bailout from the UK government, have decided to heed that call, others not.

with unprecedented financial support for despite initial pledges of support. It remains to be seen if the UK can be per-

airports and airlines in the US, Australia, Carriers have only been eligible to receive suaded to provide more financial relief. Q
France, Norway and many other countries… funds through the Corona virus Job Re-

the UK aviation, aerospace and travel sec- tention Scheme, intended to support jobs Article courtesy: https://simpleflying.com/

tors are at risk of being left behind in the and industry across all sectors. This would uk-aviation-industry-renews-calls-for-gov-

recovery”. mean the government paying the bulk of ernment-aid/
World Airnews | May 2020
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