Revised oil forecast and blinkers off
24th April 2012
The UK Airport Operators Association (UKAOO) has said that airports could shut down within weeks due to the Covid 19 crisis, unless support was forthcoming from the government.
“Governments across the world are supporting their national aviation industries, as many parts of the global travel industry have come to a halt. As some airlines call on the UK Government to act similarly, we are clear that airports will shut down in weeks unless urgent action is taken to support the industry,” said Karen Dee, chief executive of the UKAOO.
“The UK’s airports are critical national infrastructure, fulfilling a vital public service, and are on the frontline of the COVID-19 outbreak. It is essential that airport businesses remain operating and are able to weather this storm, so that they can provide the connectivity which drives growth, employment and prosperity after the crisis has abated.
Dee said that with travel bans proliferating and passengers being unwilling to fly, traffic through airports has plummeted and while UK airports are taking immediate and drastic action to cut costs and are scaling back investments the fixed costs inherent in operating airports, meant the Government will need to provide additional support.
“The Government must step in to see airports across the four home nations through the current crisis and make an unequivocal commitment to doing whatever it takes to sustain the UK aviation industry,” said Dee.
The UKAOO called for a package of measure including; providing emergency financing, requiring banks to temporarily not enforce financial performance-based banking covenants, to suspend business rates and other government and local government rates and taxes on airports.
It also called for a deferral of payments of all VAT, corporation tax and other taxes for the duration of global flight restrictions and share the employment cost of airport staff laid off throughout the crisis, suspend regulatory costs on airports where possible and provide relief from airport policing costs.
“For the sake of the UK economy it is essential for the UK Government to catch-up to its peers across the continent and provide support to the sector and the wider economy through financing, guarantees, grants and tax relief.
“Finally, to help kickstart aviation again once the pandemic is retreating, the government should suspend Air Passenger Duty for six months," said Dee.