Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of providing financial assistance to the aviation sector during the covid-19 outbreak by introducing airline rescue packages equivalent to those taken by Governments in (a) the US, (b) Singapore, (c) Germany, (d) The Netherlands, (e) France, (f) Italy, (g) Australia, (h) Norway, (i) Sweden and (j) Finland.

The Government recognises the challenging times facing the aviation sector as a result of COVID-19 and the Chancellor wrote to the aviation sector on 24 March to set out the Government’s position and the support measures available. The Government has announced an unprecedented package of support for workers and businesses to protect against the current economic emergency.

This includes the Coronavirus Job Retention Scheme, which help firms to retain employees. This Scheme will allow businesses to put employees on temporary leave, with the Government paying cash grants of 80% of their wages up to a cap of £2,500 per month, providing the business keeps the person employed.

The Government is also prepared to enter negotiations with individual companies seeking bespoke support as a last resort, having exhausted other options. However further taxpayer support would only be possible if all commercial avenues have been fully explored, including raising further capital from existing investors and discussing arrangements with financial stakeholders.