Indian airlines await govt bailout as other countries open their purse strings

Governments across the world are giving out billions of dollars in bailouts to the aviation sector. But India has not come out with any package, saying the promoters of Indian airlines including the Tatas, Rakesh Gangwal, and Wadias are rich and don’t want to use their own money to save their airlines. The Reserve Bank of India has, however, given loan moratorium to the sector till September. We take a look at what countries are doing to help the sagging airlines sector.

USA

$ 61 billion in bailouts for the airline industry

Of this, $25 billion set aside for employees

$ 25 billion allocated for loans to the airlines, as well as payroll support for cargo airlines

$ 10 billion kept aside for airports

Debating over a $3 trillion stimulus plan to renew federal aid programmes

Federal Reserve to leave interest rates near zero for the foreseeable future

Prohibited from laying off staff through September 30

Canada

Govt covers 75% of an employee's wages — up to $847 per week

Canada Emergency Wage Service to allow airlines to re-hire and avoid layoffs till Aug 29

Large Employer Emergency Financing Facility to provide bridge financing

Waived ground lease rents from March to December for 21 airports that pay rent to govt

More time to pay income taxes

Canadian airlines are, however, waiting for an industry-specific aid package promised

UK

British Airways got £35 million from the government’s furlough scheme as of May 14

£ 300 million more was handed to British Airways under Covid Corporate Financing Facility (CCFF)

The CCFF allows firms to sell commercial paper to the Bank of England

£ 75 million pledged to charter special flights to bring home UK nationals

Till June 5, British Airways, Easyjet, Wizz Air, Ryanair had taken £1.8bn from CCFF

Govt to phase out the job retention scheme by October

Germany

Govt has taken a stake in Deutsche Lufthansa as part of a $9.77 billion rescue package

Singapore

Singapore Airlines raising $6.3 billion through share and convertible bond sales

Temasek and others to inject $13.27 billion into Singapore Airlines

The airline said it would use the funding from the rights issues to beef up its expenditure needs

UAE

Govt said it’s committed to providing full support by injecting fresh capital into Emirates

Hong Kong

Govt to buy 500,000 flight tickets from airlines as part of a stimulus worth billions of HK dollars

Cathay Pacific initiates $5 billion recapitalisation financing