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Airlines: Coronavirus

Question for Department for Transport

UIN 55046, tabled on 4 June 2020

To ask the Secretary of State for Transport, pursuant to the Answer of 4 June 2020 to Question 52534, what steps the Government has taken to publicise the availability of bespoke packages of support for airlines facing financial difficulties due to the covid-19 outbreak.

Answered on

9 June 2020

The Government recognises the challenging times facing the aviation sector as a result of COVID-19, and has been meeting with airlines based in the UK on a regular basis to understand the impact that COVID-19 is having on their financial position. These meetings have also been used to inform and advise airlines on the support that can be potentially available to them if applicable.

Businesses across the industry, including airlines, have been able to draw on the unprecedented package of economic measures put in place during this time. This includes a Bank of England scheme for firms to raise capital, two business interruption loan guarantee schemes for different sizes of business, Time to Pay flexibilities with tax bills, financial support for employees and VAT deferrals.

The Chancellor wrote to airlines and airports across the sector 24th March. As that letter outlined if airlines 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 the Government is prepared to enter discussions with individual companies seeking bespoke support, but only as a last resort, having exhausted all other options. Any intervention would need to represent value for money for taxpayers.

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