The government has drafted in advisers to help decide the terms of a state bailout for Loganair, the regional airline, as the aviation industry reels from the coronavirus pandemic.

Sky News understands that the Department for Transport (DfT) has retained PricewaterhouseCoopers (PwC) to assist it in negotiations with the regional carrier, which flies to airports in Southend, Belfast and Dublin from Carlisle.

Lockdown weighs on families and businesses

The talks come amid a series of discussions between the government and stricken carriers, including Virgin Atlantic Airways, about rescue deals aided by British taxpayers.

Loganair, which typically operates more than 200 daily flights, has slashed its schedule by more than half as a result of the pandemic.

The privately owned company has asked employees to cut their working hours by 20% and accept a 20% reduction in salary, or take a period of unpaid leave.


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It was expected to be one of the major beneficiaries from the collapse of Flybe, Europe's largest regional carrier, which ceased trading last month.

Loganair has agreed to recruit a substantial number of former Flybe staff, although it recently said it would delay their start dates because of the COVID-19 outbreak.

The details of a rescue funding package being sought by the company were unclear this weekend.

Jonathan Hinkles, Loganair chief executive, said on Sunday: "Work is ongoing with all stakeholders to ensure that Loganair continues to provide the lifeline services and essential UK regional connectivity upon which so many communities and customers depend - connectivity that it is providing even today through the COVID-19 pandemic at a time when many other airlines have shut down completely.

"It is not appropriate to provide a running update on the discussions, yet we remain very confident that Loganair's future prospects are the strongest of any UK regional airline."