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Air Routes: Coronavirus

Question for Department for Transport

UIN 155091, tabled on 19 February 2021

To ask the Secretary of State for Transport, whether he plans to introduce a stimulus package to incentivise new air routes after covid-19 travel restrictions are eased.

Answered on

1 March 2021

The Department recognises the severe impact the COVID-19 pandemic has had on travel, and work continues to understand how best the industry can be supported at this time. The Government is working on a strategic framework for the recovery of the sector. It will explore the return to growth of the aviation sector, and will include consideration of workforce and skills, regional connectivity, noise, innovation and regulation, and consumer issues.

Aviation businesses have access to the unprecedented economic support package that the Chancellor has put in place to help businesses to manage the challenges they are facing as a result of the COVID-19 pandemic. Firms can continue to draw upon the package of measures announced by the Chancellor, including a Bank of England scheme for firms to raise capital, the Coronavirus Business Interruption Loan Scheme, Time to Pay flexibilities with tax bills, financial support for employees including the Coronavirus Job Retention Scheme and VAT deferrals.

In addition to this, the Airport and Ground Operations Support Scheme (AGOSS) opened for applications on 29 January to provide support for eligible commercial airports and ground handlers in England. It will provide support up to the equivalent of their business rates liabilities or COVID-19 losses – whichever is lower – in the 2020/21 financial year, subject to certain conditions and a cap per claimant of £8m.