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Aviation: Coronavirus

Question for Department for Transport

UIN 34955, tabled on 25 March 2020

To ask the Secretary of State for Transport, what discussions he has had with the Chancellor of the Exchequer on sector-wide plans to help UK airlines tackle the effect of covid-19.

Answered on

27 April 2020

The aviation sector is important to the UK economy and will be able to draw upon the unprecedented package of measures announced by the Chancellor, including a Bank of England scheme for firms to raise capital, Time to Pay flexibilities with tax bills, financial support for employees and VAT deferrals.

If airlines, airports or other aviation organisations find themselves in trouble as a result of coronavirus, even following the Government’s cross-economy wage and financial interventions, the Transport Secretary and Chancellor have confirmed that Government remains open to discussions about further cross-sector measures industry may suggest; and that any company can approach Government as a last resort, after exhausting the comprehensive package that have been put in place and all other options. Any intervention would need to represent value for money for taxpayers.