$130 million for airlines
THE Federal Government has opened applications for a new round of support for airlines, under the Retaining Domestic Airline Capability Program.
A total of $130 million is up for grabs, with the funding providing “time-limited, targeted and proportionate payments to assist domestic airlines ensure they have the capability to quickly ramp up as aviation activity increases when domestic travel and border restrictions ease, which will in turn help drive broader economic activity,” according to the tender brief.
To be eligible airlines must provide interstate transport services, and be able to demonstrate a 30% reduction in their network following the declaration of a COVID-19 hot spot by the Commonwealth Chief Medical Officer.
Funds can be used for eligible costs including wages, aircraft storage costs, machinery maintenance, licensing and accreditation costs, but airlines are required to maintain their total workforce at the levels of 30 Jul 2021 in order to qualify.
The grant program closes on 24 Oct, and money cannot be used to help fund international or cargo-only aviation operations.
For further information, see grants.gov.au.
The news follows a decision by Qantas and Jetstar to furlough around 2,500 staff for an estimated two months.