Ministers ‘U-turn on airport rescue deal’

STRUGGLING airports and airlines have accused ministers of a U-turn on a promise of special support.

Last week Chancellor Rishi Sunak said he was preparing a package to help the aviation industry, rumoured to include a multi-billionpound deal which could have seen the Government purchase stakes in the hardest-hit airlines.

However, he has now told industry leaders the Treasury will provide support only ‘as a last resort’ – and only if individual companies have ‘exhausted other options’ such as extra raising capital from investors.

The Airport Operators Association accused the Government of abandoning the sector. Chief executive Karen Dee said: ‘Our industry will now have to fight on its own to protect its workforce and its future. With passenger numbers approaching close to zero, airports have seen a major drop in revenue. They are taking unprecedented steps to safeguard airport staff and operations, which could include in some cases considering shutting down for a period of time. This could have major impacts for UK communities and businesses.’

The AOA has demanded a support package including extending business rate relief to airports and deferring all aviation taxes.

Airlines such as easy Jet and Ryanair have grounded their entire fleet, while bigger carriers such as BA and Virgin Atlantic have cut schedules by up to 90 per cent.

Ministers are said to be confident bigger firms with wealthy shareholders will cope without the need for billions in taxpayer cash. The Treasury said: ‘We are willing to consider the situation of individual firms, so long as all other Government schemes have been explored and all commercial options exhausted.’