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UK government says no industry-wide bailout for aviation

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UK government says no industry-wide bailout for aviation

Old 24th Mar 2020, 19:32
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UK government says no industry-wide bailout for aviation

https://www.theguardian.com/uk-news/...vid-19-bailout
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Old 24th Mar 2020, 20:16
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Was Sunak not just the other day saying that the airline industry would be supported to provide liquidity to help it through these coming months???

CP
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Old 24th Mar 2020, 20:46
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Well done EasyJet Senior Management.
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Old 24th Mar 2020, 20:58
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The Govt response should be to provide support, less the £X million operators insist they have to pay out as dividends. It will then be up to the shareholders to decide whether to go bust and lose all their dosh or put the dividends back into the business.
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Old 24th Mar 2020, 21:08
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Originally Posted by Fortissimo View Post
The Govt response should be to provide support, less the £X million operators insist they have to pay out as dividends. It will then be up to the shareholders to decide whether to go bust and lose all their dosh or put the dividends back into the business.
If they have to give up their dividends wont they just sell their stock and invest elsewhere?. Thus driving down the price of the stock which ends up defeating the company's value that way?
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Old 24th Mar 2020, 21:20
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........the chancellor’s comments dismayed industry leaders, who accused the government of performing a U-turn on funding for the sector a week after the chancellor floated the suggestion of targeted financial cash to help keep planes in the skies.

The International Air Transport Association (Iata) warned that airlines in Europe would be worst hit by the global decline in travel prompted by the coronavirus pandemic. It said that European airlines were expecting an average 46 per cent drop in income this year compared with 2019. The Airport Operators Association (AOA) said that passenger numbers at some UK airports were “approaching close to zero” and a number were already considering “shutting down for a period of time” after a collapse in income.

Airports are maintaining operations as hubs for air freight, bases for search-and-rescue operations and to provide links to the offshore oil and gas industry. However, Karen Dee, the AOA chief executive, said that “all of that is now put at risk by the government’s decision”.

She added: “While countries across Europe have recognised the vital role airports play and are stepping into the breach, the UK government’s decision to take a case-by-case approach with dozens of UK airports is simply not feasible to provide the support necessary in the coming days. Not only does the decision today leave airports struggling to provide critical services, it will hamper the UK recovery . . . We urge the government to reconsider and at the very least provide a comprehensive package of support for airports and ground-based services, to ensure the UK’s critical aviation infrastructure is ready to take off once the Covid-19 pandemic recedes.”
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Old 24th Mar 2020, 22:23
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I can’t feel sad for BA, Virgin , Skyteam et al.
huge profits. Big dividends. Nothing for a rainy day. Stand up for yourselves, and take it on the chin. You won’t make fat and obscene profits this year. And perhaps the public will not be so over indulged with cheap flights anymore, post virus.

The elephant in the room is Norwegian. Cant be too long surely ?
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Old 24th Mar 2020, 23:08
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If the airports and airlines are already benefiting from the measure announced last week (tax holidays, employee wage support etc) what more do they need?.
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Old 25th Mar 2020, 00:40
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Unfortunately, this young chancellor is mesmerised by the aura of St Greta. He totally buys into the whole armageddonist vision of the global warming religion. No doubt he believes he has single-handedly saved the planet with this ill-judged announcement. He will learn ... but too late for many of our familiar airlines and airports. Sajid Javid was much more pragmatic. Real pity he has returned to the back benches.
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Old 25th Mar 2020, 04:15
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Originally Posted by OzzyOzBorn View Post
Unfortunately, this young chancellor is mesmerised by the aura of St Greta. He totally buys into the whole armageddonist vision of the global warming religion. No doubt he believes he has single-handedly saved the planet with this ill-judged announcement. He will learn ... but too late for many of our familiar airlines and airports. Sajid Javid was much more pragmatic. Real pity he has returned to the back benches.
Sorry, no bailouts this time. The banks had to be saved last time to prevent the collapse of the financial system. No need for the same for airlines.

I think the government could provide loans where needed, but secured against assets, and with the option of converting to equity in the case of non-payment.
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Old 25th Mar 2020, 04:32
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We have to remember how the likes of BA and Easyjet kicked off at the prospect of Government support for Flybe only a few weeks ago.
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Old 25th Mar 2020, 06:17
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Originally Posted by OzzyOzBorn View Post
Unfortunately, this young chancellor is mesmerised by the aura of St Greta. He totally buys into the whole armageddonist vision of the global warming religion. No doubt he believes he has single-handedly saved the planet with this ill-judged announcement.
This belief of yours is based on robust peer-reviewed data and calculations that are at this moment sensationally overturning expert scientific consensus?
Otherwise you are the deluded cultist.
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Old 25th Mar 2020, 06:58
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So no change to Government policy in order to make airlines and airports a 'Special Case'. That's all. So why the anguish and tears? Why should they be treated differently?
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Old 25th Mar 2020, 08:16
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Some airlines will never recover from this and I think we might have seen the end of low cost air fares, at least in the short term.
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Old 25th Mar 2020, 08:26
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Originally Posted by ShyTorque View Post
Some airlines will never recover from this and I think we might have seen the end of low cost air fares, at least in the short term.
Some might say, that’s not a bad thing!
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Old 25th Mar 2020, 08:59
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Originally Posted by Atlantic Explorer View Post
Some might say, that’s not a bad thing!
As long as this does not go on too long, Ryanair will be hammering the other airlines with low-cost fares, and demand may well be lower than before.

O' Leary will be looking to deal a knockout blow to the competition.
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Old 25th Mar 2020, 09:21
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The right decision. What is so special about airlines? Ferries, taxi's, coaches, Hotels, tour operators, caravan sites and on and on have all sen their businesses decimated by the travel ban, where do the bailouts end.
If it is the end of cheap flights then so be it, more people will holiday at home creating more employment in the UK leisure sector and improving our economy even further.
No more unnecessary flying just for the hell of it.
( spoken as someone guilty of doing exactly that during the past)
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Old 25th Mar 2020, 09:30
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It's horrible to watch an industry that has been so carefully created simply thrown to the dogs. Aviation is as worthy of government support as anything else, though the matter of demanding help whilst paying dividends is unforgivable even if contractual. A million employment contracts have been broken by employers, so why not one to shareholders?

It seems supremely ironic that only yesterday Willie Walsh threw a tantrum over support for Flybe, and now he sees nothing wrong in government money arriving in BA!

When air travel does resume, I think it will be expensive and only for the comparative few.

My heartfelt thoughts are with all those whose futures are in doubt. Being over 65 and past it has its benefits.
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Old 25th Mar 2020, 09:36
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When air travel does resume, I think it will be expensive and only for the comparative few.
I personally just can’t see that. I think the aviation industry is going to come out of this smaller than it went in, but there is still going to be the usual demand for bucket and spade, package holiday flying (thinking purely about the UK market here).

I’m a pessimist and I do think for various reasons airline flying as a career is dead, but equally I do think that flying will still be happening in mass market quantities after this.

My heartfelt thoughts are with all those whose futures are in doubt. Being over 65 and past it has its benefits.
On that point I agree completely. A large number of pilots are about to find out that the jobs market is an unforgiving place for those with no real back up plan or qualifications. A lot of people are going to be facing the replacement of £100k+ a year jobs with a career in minimum wage employment at best.
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Old 25th Mar 2020, 09:43
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Originally Posted by flocci_non_faccio View Post
I think the aviation industry is going to come out of this smaller than it went in, but there is still going to be the usual demand for bucket and spade, package holiday flying (thinking purely about the UK market here).
Because we know that leisure travel isn't at all price-sensitive ...
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