The aviation sector can draw on the unprecedented package of economic measures we have put in place during this time. These measures include: HMRC’s Time to Pay flexibilities with tax bills, including VAT deferrals; the Coronavirus Job Retention Scheme; HMT and the Bank of England’s Covid Corporate Financing Facility; and the Coronavirus Business Interruption Loan Scheme for large and small businesses.
If airlines or airports find themselves in trouble as a result of coronavirus, even following the Government’s cross-economy wage and financial interventions, the Transport Secretary and Chancellor have confirmed that we are prepared to enter discussions with individual companies seeking bespoke support as a last resort, having exhausted all other options. Any intervention would need to represent value for money for taxpayers.
The recent announcements about proposed redundancies will be very distressing news for employees and their families. Government recognises the challenges facing the aviation industry and remains committed to an open dialogue with the sector and unions, to minimise the damage to industry and retain jobs. We encourage airports and unions to engage constructively with each other, striving to provide employees with as much certainty as possible during this challenging time.