Following the publication of data by the International Air Transport Association which indicates that global airlines stand to lose up to 250 billion dollars in lost revenue due to the coronavirus epidemic, industry representatives have appealed to the British Government to waive regulatory charges due throughout the remainder of the year. Airlines UK, the major lobbying group in the sector, has written to Grant Shapps, the Transport Secretary demanding urgent support.
The airlines, which include British Airways as well as low-cost airlines easyJet, Ryanair and Virginal Atlantic are demanding a moratorium on legislation which requires them to refund them for cancelled flights. The airlines have requested the possibility of being able to issue vouchers rather than refunds to improve their cashflow.
Additionally, the airlines are requesting the suspension of air traffic control charges as well as fees related to the Civil Aviation Authority. Airlines UK called for Government to cover these charges throughout this period so that the National Air Traffic Services and the CAA can continue to be paid and function as critical enablers of the wider UK aviation landscape, both through the current crisis and then into the recovery phase”.
Rishi Sunak, Chancellor of the Exchequer had earlier this week argued that Government would only consider financial support through loans or buying of shares only if airline shareholders’ existing resources are exhausted. However, the International Air Transport Association insisted that airlines will collapse by May if no external financial help is provided.
CDE News Agency
