North airline prepares to ask for financial support

● Loganair to seek state bailout to keep lifeline services running

The north’s lifeline air service provider, Loganair, will ask the government this week for financial support to keep its operations running.

Chief executive Jonathan Hinkles yesterday said that, unlike other airlines seeking bailouts, it was “critical” that his company keep flying routes on which its customers depend.

Loganair, which provides air services for the Outer Hebrides and Northern Isles, has grounded all flights apart those providing essential deliveries, such as medical supplies and mail to remote areas.

Mr Hinkles said: “As a provider of lifeline air services, Loganair is unlike other many airlines in that we must continue to fly the lifeline routes on which our customers depend.

“It’s critical that we do so, and we believe we are well placed to be able to maintain those services throughout the current crisis.

“This position means we are unable to ‘suspend’ our operations and furlough all our employees, as other airlines have.

“The Covid-19 pandemic has had an enormous effect on all UK airlines.

“The government has made it clear that it is open to specific requests for support from individual airlines, and while Loganair has not yet taken up this invite as we explore all paths, with the unique position we find ourselves, we expect to join other UK airlines in doing so in the coming days.”

In an interview on BBC Radio 4, Mr Hinkles also said his company respected indications from Chancellor Rishi Sunak last week that there would not be an “industry-wide bailout programme” and that airlines should look to shareholders and lenders first.

He added that Loganair had “been doing a lot of work with our shareholders and all of our suppliers to try to minimise costs”, but warned it was more “about actually getting rid of payments” than deferring costs.

Travel agents trade body the Scottish Passenger Agents’ Association (SPAA) yesterday said the importance of Loganair and its contribution to the

Scottish economy should not be underer estimated.

SPAA president Joanne Dooey said: “It should not be forgotten that, in addition to flying passengers, Loganair also transports essential medicines, mail and newspapers, which would not otherwise reach those who need them.

“The SPAA urges the government to consider any application which Loganair may make for emergency support.”

CHALLENGING TIMES: Loganair said it will ask the government for cash support in order to be able to maintain its essential routes to the Highlands and islands