The aviation industry in Switzerland is receiving a bailout from the government to bridge gaps due to the lack of liquid funds. The Swiss government will provide CHF1.9 billion (£1.6 billion) to the sector. The Swiss parliament will soon be giving its final go-ahead on the distribution of these funds.
Majority of the funds will go to Swiss and Edelweiss
Of the total amount, CHF1.275 billion will go directly to the two airlines, Swiss and Edelweiss. Up to CHF600 million will be allocated to other companies that are essential to the functioning of the sector. With the lack of any air travel, the sector is reeling under major financial pressure and the funds from the government come as a welcome relief.
The aid comes with some instructions. The funds have to strictly be used for Swiss infrastructure. The government has also made it clear that the future profits made by the airlines must be utilized to repay the aid. The liquidity needs of Swiss and Edelweiss are estimated to be around CHF1.5 billion up to the end of 2020.