38 MPs write to chancellor seeking urgent help for airlines

Aviation chiefs have been lobbying the government for a targeted aid package to stop businesses collapsing.

BBC News reports the airline bosses have welcomed the MPs’ action, with lobbyists claiming the sector is “entering the danger zone”.

Sunak has so far said airlines should find other forms of funding.

BBC News reports the sector largely wants two things from government: emergency loans for airports and airlines as they try to remain open despite a grounding of UK passengers; and the suspension of a number of taxes and regulatory charges.

The industry wants the government to cover the cost of the CAA as well as air traffic control charges, for the rest of the year, BBC News reports.

When the crisis is over, they also want Air Passenger Duty tax suspended for six months, BBC News reports.

“Restrictions have all but eliminated airline and airport revenue, but not costs, which are substantial and go far beyond solely wages,” the MPs’ letter said.

“It remains unclear what the duration of the economic impact will be on the UK’s airlines and airports, who face a pressing challenge to survive.”

Tim Alderslade, chief executive of Airlines UK, and Karen Dee, boss of the Airport Operators Association, said in a joint statement: “We’ve put countless cross-industry ideas on the table to help aviation through this, and the chancellor said in his letter this week he was open to discussing them, yet no discussion has yet taken place.

“We are now entering the danger zone, and we urge government to change tack and start to engage on a sector-wide basis before it’s too late.”

The MPs said aviation supported some 1.6 million UK jobs and the sector would be essential to support the recovery of the wider UK economy once the crisis had passed.

The BBC reports that last week Sunak said the state would only enter into negotiations with individual airlines once they had “exhausted other options”.

Transport Secretary Grant Shapps has said he cannot rule out the state taking an ownership stake in UK airlines that have been hit by the impacts of the coronavirus outbreak.