The Airport Operator’s Association (AOA) has warned that UK airports may face closure if the government doesn’t intervene.
“Governments across the world are supporting their national aviation industries, as many parts of the global travel industry have come to a halt,” said Karen Dee, CEO of the AOA, commenting on the impact of the COVID-19 pandemic. “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.
“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.
“With travel bans proliferating and passengers unwilling to fly, traffic through airports has plummeted. UK airports are taking immediate and drastic action to cut costs and are scaling back investments in light of the situation. Due to the fixed costs of operating airports, 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.”
Among other measures the AOA suggests that the government should be ready to provide or organise emergency financing as a measure of last resort. It also suggests that business rates and other government rates and taxes on airports should be suspended and that there should also be a deferral of payments of all VAT, corporation tax and other taxes for the duration of global flight restrictions.
“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.
Dee concluded by underlining that, “To help kick-start aviation again once the pandemic is retreating, the government should suspend Air Passenger Duty for six months.”