UK airlines call for multibillion-pound coronavirus bailout
Demand comes ahead of ‘bloodiest week in British aviation history’
Bosses at British airlines are calling for a multibillion-pound emergency bailout to stop the industry being destroyed by the coronavirus.
Trade body Airlines UK has called for urgent action, saying the government’s “prevarication” and “bean counting” had to stop.
The chairman of Virgin Atlantic Airways’ majority shareholder, Virgin Group, will write to Prime Minister Boris Johnson today to warn that the sector needs immediate financial aid of up to £7.5bn to stay afload amid the ongoing pandemic.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The Guardian reports the funding could include “cash advances and guarantees” that credit card companies will not “withhold millions of pounds relating to payments that their customers have made for future flights and holidays”.
Sky News adds that this week could be “the bloodiest week in British aviation history”, with British Airways, Virgin Atlantic, easyJet and Ryanair all expected to announce “mass groundings of aircraft and potentially huge redundancies” as the pandemic continues.
–––––––––––––––––––––––––––––––For a round-up of the most important business stories and tips for the week’s best shares - try The Week magazine. Get your first six issues for £6–––––––––––––––––––––––––––––––
British Airways warned employees last week that the industry is facing a “crisis of global proportions” that was worse than that caused by the 2003 SARS outbreak or the 9/11 terror attacks on New York. In a memo titled “The Survival of British Airways”, BA boss Alex Cruz said that the airline is to ground flights “like never before”.
“This crisis is going to be grim,” said Jon Horne, president of the European Cockpit Association, which represents more than 40,000 European pilots. “It is neither a Gulf War, nor Sars, nor 9/11, or the 2008 financial crisis, but all of them together.”
The call for aid comes after the US announced that it will extend its ban on travel from the European Union to include the UK and Republic of Ireland.
The extended ban, which will begin tomorrow, will hit vital routes for British Airways, Virgin Atlantic and Norwegian Air. American Airlines has already announced that it is suspending nearly all of its long-haul international flights from today.
A UK government spokesman said: “We recognise how difficult the current situation is for the aviation sector and, across government, we are engaging with the sector’s leadership to support workers, businesses and passengers.”
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Today's political cartoons - October 5, 2024
Cartoons Saturday's cartoons - gathering funds, juggling tariffs, and more
By The Week US Published
-
5 category 5 cartoons about hurricane Helene
Artists take on precarious conditions, planning ahead, and more
By The Week US Published
-
Wolfs: 'comedy thriller' stumbles despite George Clooney and Brad Pitt
While the crime caper might 'pleasingly pass a Saturday night' its star-studded duo cannot ultimately salvage it
By The Week UK Published
-
Senate passes FAA bill with new consumer protections
Speed Read The legislation will require airlines to refund customers for flight delays
By Peter Weber, The Week US Published
-
Flybe: turbulence prompts a second nosedive
feature Airline’s latest collapse is a blow to ‘regional connectivity’
By The Week Staff Published
-
The Week Unwrapped: Factories, drug money and scanners
podcast Will a UK lawsuit lead to better working conditions in Thailand? Could a new way of funding antibiotics help tackle resistance? And is airline security about to change for the better?
By The Week Staff Published
-
The Week Unwrapped: Chinese protests, supersonic jets and university cheats
podcast Will mortgage strikes force China to change course? Does Concorde finally have a worthy successor? And what’s behind a rise in cheating?
By The Week Staff Published
-
Is flight tracking the new Netflix?
In Depth Hundreds of thousands follow flights of the famous but privacy concerns have led to backlash
By The Week Staff Published
-
Rail strikes: is Britain on track for a ‘summer of discontent’?
Speed Read The ‘biggest rail strike in modern history’ is planned for next week
By The Week Staff Last updated
-
‘See it. Say it. Sorted’: is it the end of the line for train announcements?
Speed Read The transport secretary has pledged a ‘bonfire of the banalities’ on England’s railways
By The Week Staff Published
-
Will European countries follow France to ban UK travel?
Under the Radar Paris blocks arrivals from Britain as Omicron cases spiral
By The Week Staff Published