Transport Times - Adam Tyndall, Programme Director for Transport, London First

The coronavirus pandemic has torn up the rulebook for government spending the world over. Some parts of these huge packages of funding measures to support businesses and employees through the next few months have been relatively simple to construct, whilst others are more complex. The UK is no exception.

Unsurprisingly as flights started to be grounded, there was a clamour for support for the aviation industry. The Government decided not to push forward with a one-size-fits all package, which is understandable given the complexity of the sector and the different operating models used by airlines. But one part of the picture risks being overlooked: the airports themselves. Many of London's airports have taken bold and difficult decisions in recent days, not least in relation to staffing costs and executive pay. Some are increasing freight capacity, whilst others are closing entirely and making their infrastructure available for supporting the national effort. This leadership from the industry now needs to be urgently supported with a coordinated package from the Government.

Airports will be critical to our recovery, and a support package for them would be relatively straightforward to deliver. First, they should provide specific support for the airports on employee retention, as this will be critical to enable them to ramp up once mass travel resumes. Second, there should be comprehensive tax relief – with revenues close to zero, this would make a significant difference. Third, the government should consider covering the costs of policing and mandatory programmes to modernise airspace and security until this crisis has passed. Finally, banks and bondholders should temporarily stop enforcement of financial performance-based banking covenants.

Ultimately, our airports will be key to both the efficiency of the economic recovery, and the long-term realisation of the country's trade ambitions post-Brexit. The UK, like the rest of the world, will emerge from the coronavirus outbreak. When we do, we will be at a significant disadvantage if our historically world-beating aviation sector is weakened due to a lack of government action...more

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