CONVID-19: State Aid for Airlines-the story so far

While airlines globally call out for as much as $200 billion in aid to survive Covid 19, governments – with the exception of the US – have so far failed to pledge a similar amount to the industry.

Below is a list of the state aid that has been offered so far, Airline Economics will update it as and when it changes

Australia has given a A$715 million (US$430 million) aid package of refunds and forward waivers on fuel taxes, and domestic air navigation and security charges

Plus an additional A$300 million package comprising $A198 million to support regional aviation and a $A100 directly to support regional airlines

Brazil is allowing airlines to postpone payments of air navigation and airport fees

China has introduced measures, including reducing airport charges as well as subsidies for airlines that continue to fly to the country

Finland – the government has provisionally agreed to provide a state guarantee of up to €600 million to Finnair

Hong Kong – The Hong Kong Airport Authority, with government support, is providing a total relief package valued at HK$1.6 billion (US$206 million) including waivers on airport and air navigation fees and charges, and rent reductions for aviation services providers

New Zealand will provide a NZ$900 million (US$580 million) loan facility to the national carrier as well as an additional NZ$600 million relief package for the aviation sector.

Norway is giving a state loan-guarantee for its aviation industry totalling NKr6 billion (US$533 million), of which NKr3bn ($270m) is potentially for LCC Norwegian Air Shuttle

Singapore has given relief measures valued at S$112 million (US$82 million) including rebates on airport charges, assistance to ground handling agents, and rental rebates at Changi Airport.

  • State-backed investment fund Temasek  is underwriting Singapore Airlines3 billion Singapore dollars ($3.72bn) in equity and up to 9.7 billion Singapore dollars ($6.8bn) capital raising*

Sweden and Denmark are providing $300m in state loan guarantees for SAS

United States’ Senate has approved $58billion in loans and loan guarantees for US passenger airlines and cargo carriers

Sources – IATA, and Airline Economics research

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