As the travel industry comes to an almost complete halt, in view of current developments related to Covid19, European airlines are grounding their planes and counting their losses. As the disruption continued to shock the global industry, European airlines have demanded urgent tax relief to stave off bankruptcy.
The Airlines for Europe group called for significant tax deferrals “to ensure that as many airlines as possible survive”. IATA, the aviation industry’s main international body, estimated that airlines would need around 150 to 200 billion US dollars to survive. A number of companies have cancelled the majority of their routes and began to slash jobs in response to unprecedented travel restrictions, which now also include the closure of European borders.
American carriers have already asked the Federal Goverment for $50 billion in grants and loans, plus tens of billions in tax relief.
Amongst the earliest governmental interventions in this industry, Sweden and Denmark have pledged around 275 million euro in loan guarantees for Scandinavian carrier SAS.