Australia extends airline relief package with budget deficit seen at $140b

The Australian government said Monday it will extend a COVID-19 relief package for domestic airlines by four months in its annual budget, as one economics forecaster predicted the country would record a A$198.5b ($140b) deficit. The federal government will continue underwriting domestic flights until Jan. 31, 2021, and flights to regional locations until March 28 when it delivers its annual budget on Oct. 6, Deputy PM Michael McCormack said. The extension reflects uncertainty about how long the new coronavirus will impact the Australian aviation industry, which has seen most of its revenue wiped out by the closure of national and internal state borders. Previously the government gave a Sept. 30 end date for the relief package. “The disruption caused by current border arrangements has made life difficult in the aviation industry, with cancelled flights, refunds and passenger frustration,” McCormack said. “Uncertainty affects the ability of airlines and airports to plan for recovery and undermines consumer confidence, which amounts to a significant cost to industry and ultimately the Australian economy.” McCormack did not put a dollar figure on the support package extension but said the government had already spent more than A$150m on it since introducing it in April.<br/>