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Coronavirus Airlines: In five axes the air support plan - What it provides

Interventions with reduced contributions, compensation for flights April - May with 20 euros per position, extension of contract suspension until 31/12 and reduction of VAT on transportation, the government announced………..

Ministry of Finance with a joint press release, Labor and Social Affairs and Infrastructure and Transport announced measures to support air transport.

as mentioned, branches, such as air transport, which is directly linked to tourism and indirectly to a number of other sectors of the economy (focus, entertainment and trade in tourist areas, island economy etc.), they need a special support framework, as they are of systemic importance to the country's economy.

From the first moment, the Greek Government took horizontal measures, such as:

  • suspension of tax and insurance obligations,
  • temporary suspension of employment contracts for business employees, accompanied by special emergency compensation,
  • discount 40% in the leases of companies and their employees,
  • possibility for rotating business work, because of the crisis, during the first phase of dealing with it,
  • providing emergency compensation to young professionals operating within affected sectors,
  • possibility of participation in the scheme of the returnable advance, both of the first phase, as well as the upcoming second phase, totaling 2 billion. euro.

The following data have been considered for the configuration of this special framework:

1. The aviation industry is concerned 306 companies and 11.000 employed and its systemic significance lies in the fact that 82-85% the country's tourism revenues (total revenue 18 billion. per year), comes from tourists who visit our country by plane and use the services of airports.

2. Greek companies in the industry (air, ground-handling service companies, airports) have performed very well in recent years, thanks to high tourist arrivals and receipts. For this, you don't need huge amounts of support, nor direct capital aid (capital injection), as has been the case in other European countries.

3. Economic and social activity in Greece is gradually returning 4 May, after removing the lockdown, while the country will start to receive tourists from abroad as well 15 June 2020.

4. Tourist arrivals will have a positive effect on flight work and traffic at airports.

5. Special interventions, in sectors of systemic importance to the national economy, provide the necessary safety net in order, first, companies can flexibly adapt their strategy to new data, and on the other hand, the State to preserve the added value of such industries and above all the income and employment of workers in them.

In this environment, the government, immediately proceeds to set up a special framework for the aviation industry, with the following interventions:

1.Expansion of horizontal measures in transport for the period after May 2020

Horizontal measures to support workers and businesses in the first phase of the crisis continue after May, with particular emphasis on the transport sector, which includes, of course, and businesses in the wider aviation industry. These are measures, such as:

The temporary suspension of employment contracts for business employees, accompanied by special emergency compensation, until July.

discount 40% in business rents, until August, and workers in those who are on a temporary suspension of the employment contract after May.

It is envisaged that the use of special purpose compensation will be made by the employees of the aviation sector and will have costs around 22 million. euro, taking into account the coverage of insurance contributions by the State.

2. "Co-Work" Program.

The program will cover the period from June 15th to December 31st 2020. Furthermore, All insurance contributions are subsidized (employer and employee) for the working time that the employees are not employed. The benefit of this intervention is estimated at 50 million. euro, until December 2020.

3. Special flight crew taxation

Instead of taxation on the income scale, a special rate is provided 15% for the tax on the services of the pilots of aircraft, cabin crews and technical aircraft, as applicable to maritime taxation. This will lead to a reduction in the wage costs of companies in the industry, with savings 7,7 from. per year. It is noted that this is a permanent measure.

4. Compensation for April-May flights with 20 euros per offered position (plus VAT)

For regular airline flights, in which obligations to provide public service have been imposed, paid exceptionally, during the two months of April and May 2020, additional compensation for these flights, rising

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