Airports to shut 'within weeks' without help, trade group says

UK airports will shut down within weeks with knock-on effects for the wider economy if the government does not provide emergency support, the sector's trade association warned.

The Airport Operators Association called on the government to do "whatever it takes" to prop up the industry as it faces an unprecedented plunge in demand in response to the COVID-19 coronavirus pandemic.

Karen Dee, the AOA's chief executive, said airports were cutting costs and investment as travel bans and consumer fears cause traffic to plunge. But she said because of airports' high fixed costs the government would have to provide urgent financial support to ensure the industry's survival.

"We are clear that airports will shut down in weeks unless urgent action is taken to support the industry," Dee said. “The UK’s airports are critical national infrastructure, fulfilling a vital public service, and are on the frontline of the COVID-19 outbreak."

Dee called on the government to:

• provide emergency financing as a measure of last resort
• tell banks to suspend banking covenants based on financial performance
• defer business rates and other taxes
• delay demands for VAT and corporation tax while flights are restricted
• share employment costs for airport staff laid off during the crisis.

"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.

The AOA's plea adds to calls by airlines for state support as passenger numbers plunge. An aviation consultancy has warned most airlines in the world will be bankrupt by the end of May without coordinated government support.

Leading carriers such as British Airways, Ryanair, easyJet and Virgin Atlantic have announced drastic cutbacks in response to the coronavirus crisis, including cancelling most flights and grounding thousands of planes.

Dee said other measures to help airports included suspending regulatory costs where possible, relief from airport policing costs and suspending air passenger duty for six months.