LOGANAIR remains confident that it will be able to survive the ongoing Covid-19 crisis which has effectively closed down the country’s aviation industry.
The airline continues to provide a number of skeleton air services to Scotland’s island communities as well as chartered and freight flights.
Monday’s announcement that the UK government’s coronavirus large business interruption loan scheme (CLBILS) is now open for applications will bring a glimmer of hope to the company’s management.
Until now the regional carrier, which had just taken over a number of routes from bankrupt airline Flybe, had not been able to apply to any government sponsored help.
Too small to qualify for the Covid corporate financing facility (CCFF) and too large for being eligible for the coronavirus business interruption loan scheme, Loganair was one of many medium sized companies that found itself trapped in the middle.
Under the CLBILS scheme, companies have access to additional loans that will be guaranteed up to 80 per cent by the government.
The scheme allows lenders to support businesses that were viable before the coronavirus outbreak, the government said.
Loganair chief executive Jonathan Hinkles said: “Work is ongoing with all stakeholders to ensure that Loganair continues to provide the lifeline services and essential UK regional connectivity upon which so many communities and customers depend – connectivity that it is providing even today through the Covid-19 pandemic at a time when many other airlines have shut down completely.
“It is not appropriate to provide a running update on the discussions, yet we remain very confident that Loganair’s future prospects are the strongest of any UK regional airline.”
Loganair has already introduced a 20 per cent pay cut as well as reductions in pension contributions for its 840 employees in a bid to protect jobs during these unprecedented times.
Become a supporter of Shetland News
Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.
Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.
Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has over 530 supporters who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.
Your contribution will ensure Shetland News can: -
- Bring you the headlines as they happen;
- Stay editorially independent;
- Give a voice to the community;
- Grow site traffic further;
- Research and publish more in-depth news, including more Shetland Lives features.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.
Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.Support Shetland News