UK aviation: Loganair seeks state help. Europe's #1 market falls 79%
CEO Jonathan Hinkles has praised the UK Department for Transport and CAA for their operational support, but believes airlines will need financial support from the government. British Airways and Ryanair, together with easyJet, are part of the trio of leading airlines by UK capacity, but have not called for government support.
The UK finance minister, Rishi Sunak, has told airlines to exhaust all commercial sources of funding before the government would consider sector-specific financial help. He has offered support across the economy, including loan guarantees and paying 80% of employee salaries up to a specified limit. EasyJet has agreed with Unite, the union, on cabin crew furlough arrangements for two months from 1-Apr-2020, under which they will be paid through the government scheme.
Total seat capacity in the UK, Europe's largest aviation market, is down by 79.0% year-on-year this week (commencing 30-Mar-2020), according to data from OAG and CAPA. Domestic capacity is down by 61.7%, and international capacity is plummeting by 80.5%.
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