COVID-19 and bailout policy: The case of Virgin Australia.
Transp Policy (Oxf)
; 114: 174-181, 2021 Dec.
Article
in English
| MEDLINE | ID: covidwho-1440384
ABSTRACT
The impact of COVID-19 on air transport is unprecedented and some well-known airline brands may disappear as a result. Governments around the world have responded swiftly to cushion the financial impact by offering direct wage subsidies, tax relief, loans, etc. This paper explores the government's appropriate responses to failing airlines' bailout request by examining the case of Virgin Australia. Following the bailout policy principles established in the literature, we suggest that bankruptcy protection should be considered as the first solution to a failing carrier. A bailout decision should be guided by a set of principles and procedures, which should not be taken lightly. Our analysis also shows that the government cannot take a hands-off approach in the absence of private lenders and investors, as the costs to consumers and regional residents would be huge if the carrier could not get through the COVID-19 pandemic. A minimum level of assistance with conditions might be needed to maintain market competition.
Full text:
Available
Collection:
International databases
Database:
MEDLINE
Language:
English
Journal:
Transp Policy (Oxf)
Year:
2021
Document Type:
Article
Affiliation country:
J.tranpol.2021.09.015
Similar
MEDLINE
...
LILACS
LIS