Should regional airports get state aid?

From a Lufthansa Consulting perspective, the answer to this question is not if regional airports should get a bailout but how regional governments can work with and provide financial aid to these airports to survive the crisis.

COVID-19 pandemic has seriously disrupted the aviation industry including both airports and airlines. Many countries still keep stringent domestic and international travel bans to control the spread of the virus. The consequent sharp drop in passenger numbers and flights has started to impact the financial viability of regional airports. Unless a significant improvement of the current situation takes place, which is unlikely, a financial bailout for some regional airports will be inevitable in the coming months. Both airports and governments need to prepare themselves for the foreseeable bailout exercise.

The state must provide financial aid to the regional airports with strategic importance 

In this article, our financial expert Haihong Xu explains in detail:

- Why regional governments need to provide financial aid to their key regional airports,

- What are the key preconditions that airports need to fulfill and

- How governments can prepare themselves for the coming bailout requests

Read the full article here

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Further insights from Lufthansa Consulting’s aviation experts are available here

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