Emergency aid

16 March 2020 By Lisa Jucca Follow @LJucca

Airlines and other companies hit by the Covid-19 crisis need government support to survive. The widespread shock means Brussels must act faster and be more generous than in the global financial crisis. Clear rules on payouts and how money is spent can reduce moral hazard risks.

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Major airline alliances Star Alliance, SkyTeam and Oneworld on March 16 jointly called on governments to extend extraordinary support to the industry to alleviate pressure caused by the coronavirus outbreak. Airlines around the world are grounding planes and laying off staff in response to travel curbs imposed by the United States and other countries to fight the spreading of coronavirus.

The European Commission said on March 13 it had put in place a hotline to help member states discuss state aid needs and promised to assess requests for state aid clearance quickly.

On March 12 the commission approved a 12 million euro request by Denmark to compensate event organisers for the damage suffered due to the cancellation of large events with more than 1,000 participants, the first state aid request linked to the Covid-19 emergency.

European Union rules permit member states to offer public aid to sectors or companies to remedy national disasters or serious economic disturbances affecting a member state.

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