Jonathan Hinkles, chief executive of Loganair, which picked up nearly 20 Flybe routes after its collapse earlier this month, told the BBC that Loganair would need help to maintain essential air services.
Loganair has already grounded half its fleet, and has announced further service reductions for April – but has pledged to keep flying to remote communities reliant on its service for connectivity, mail and other essentials such as pharmaceuticals.
Hinkles, though, further warned on Monday (30 March) the carrier would at some stage lack the cash to maintain operations without government intervention.
However, chancellor Rishi Sunak last week said airlines should explore all other funding avenues before making an official application for state aid.
Since then, nearly 40 MPs have written to Sunak urging him to take action to support airlines, such as providing emergency loans and offering reliefs in the form of tax and regulatory breaks.
Virgin Atlantic is understood to be considering whether to apply for what could be hundreds of millions in state aid.
Elsewhere, it has been reported Flybe administrator EY has entered talks with the government with a view to potentially nationalising the failed regional carrier.
Flybe was acquired by the Virgin Atlantic-led Connect Airways consortium in January 2019. However, investors pulled the plug on its funding last month citing the impacts of the coronavirus pandemic.
Hinkles told the BBC any airline saying it could survive the pandemic without government support “would probably be lying”.
Airlines UK, the trade body for UK registered airlines, and the Airport Operators Association have backed the calls from MPs for emergency loans for airlines and airports, and the suspension of various taxes and regulatory charges such as Air Passenger Duty.
Tim Alderslade, chief executive of Airlines UK, said the industry was now “entering the danger zone”. “We urge government to change tack and start to engage on a sector-wide basis before it’s too late,” said Alderslade.
It all follows a suggestion by Sunak in the early stages of the government’s response to the coronavirus crisis that the Treasury was in talks with the Department for Transport over a support package for the aviation sector, which has subsequently failed to materialise.
