UK: Buy plane tickets and give them away, ministers told

Grant Shapps has been urged to buy swathes of airline tickets before giving them away in a “lucky draw” to boost the Covid-ridden aviation industry. In what could be dubbed “Grant’s Giveaway”, trade body IATA said the lottery was one of five “proven ways” that air travel can be stimulated through greater state intervention. Hong Kong authorities have pre-purchased 500,000 tickets to be handed out to local residents and overseas visitors when its borders reopen. Another idea, taken up in Thailand, is for governments to subsidise passenger travel for doctors and nurses. Alexandre de Juniac said: “Governments will need to add measures that stimulate demand. Such targeted initiatives will help generate revenues, avoid adding debt to airlines.” Other than investing around £1m to Flypop, an airline with no planes or operating licence, the UK Government has refused to provide airlines with industry-specific support. Rishi Sunak has said that taxpayers will only step in as a last resort once all private options have been exhausted. Other ways to stimulate the aviation industry included temporary waivers of government charges - such as the UK’s air passenger duty. Subsidies for running regional routes and incentives for operating services with few passengers on board was proposed. <br/>