Jet2.com able to access Government-backed loans thanks following MP's intervention
US-based airline Jet2.com has been granted much needed headroom during the current shutdown of air travel after regional MPs intervened to ensure it could access a Government-backed loan scheme.
The Leeds-based travel operator can now apply to draw on the Covid Corporate Financing Facility (CCFF) which allows large firms to mitigate disruption to their cash flows through the purchase of short-term debt in the form of commercial paper .
The move comes after Thirsk and Malton MP, Kevin Hollinrake and Andrew Jones, the MP for Harrogate and Knaresborough petitioned the Treasury on its behalf.
Mr Hollinrake said: “This is very good news for Jet2 and it will make a significant difference to the company in the months ahead as it is able to resume business and we all start to go on holiday again.”
“It is one of the largest employers in the region flying from 10 UK bases including Leeds Bradford, Manchester and Newcastle. Jet2 planes have been grounded for much of 2020 and the whole of 2021 so far and the additional headroom this liquidity brings will further enable the business to deal with the ongoing disruption to the sector and ensure it can bounce back to the profitable business it was as we come out of lockdown”.
Jet2.com is one of the region’s larger employers with more than 3,000 people working for it.
Treasury Minister John Glen said: “I am grateful to Mr Hollinrake for bringing his concerns to my attention. The Government recognises Jet2’s contribution to the UK’s economy as well as its steps to navigate the challenges of the last 12 months. We are mindful of the continued uncertainty facing the sector and HM Treasury continues to support the Department of
Transport’s work leading the Global Travel Taskforce to facilitate a resumption of international travel.”
Jet2 Executive Chairman Philip Meeson. Jet2, added: “The Group is grateful to both the Bank of England and HM Treasury for the CCFF, the ongoing provision of the Coronavirus Job Retention Scheme and, together with the responsible liquidity actions already taken by the business, this provides the Group with additional headroom to deal with the ongoing cost of disruption to our sector, ensuring we can continue to support our great business through this challenging period”.
Jet2 holidays is the UK’s second largest tour operator offering package holidays across the Mediterranean, Canary Islands and Europe.
