Question to the Department for Transport:

To ask the Secretary of State for Transport, whether the Government has made an assessment of the potential merits of providing (a) bailout funding or (b) loans to airlines that (i) would or (ii) would not be contingent on commitments to reduce emissions to ensure that airlines can continue to operate during the covid-19 pandemic.

The Government recognises the challenging circumstances facing the aviation industry as a result of Covid-19 and firms experiencing difficulties can draw upon the unprecedented package of measures announced by the Chancellor, including schemes to raise capital and flexibilities with tax bills.

In the Chancellor’s letter to the aviation sector on 24 March 2020, he made it clear that the Government would consider bespoke financial support for firms as a last resort, once all other options had been exhausted. This means firms must have exhausted the comprehensive package of economy-wide measures we have put in place and all other funding options, including with shareholders and commercial debt providers. In order to protect the interests of taxpayers, any support would need to represent value for money. Companies receiving support also need to agree to appropriate conditions, including conditions relating to tax, supplier payment terms, climate change and corporate governance.