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Covid-19 crisis thrusts state aid, airline survival to the forefront of governments response
07 May 2020 00:00
As governments around the world scramble to respond to the economic downturn sparked by the Covid-19 pandemic, fears are mounting that state intervention to prop up specific businesses could harm competition. In the European Union, divisions over state aid have led to unusual divisions between northern and southern member states, while the readiness of governments to help national airlines has sparked criticism on the part of competing airlines that aren’t receiving support. While in Australia, the government is steadfastly refusing to step in to save a local airlines, despite the prospect of the country being left with one, monopoly domestic airline.
While there have been scores of national support measures approved under the EU's temporary coronavirus state aid framework, strikingly only Denmark has made extensive use of an alternative mechanism.
As a number of governments across the Asia-Pacific region struggle with how to ensure they still have a functioning aviation industry once Covid-19 restrictions ease.