Jet2.com can access government guaranteed loans thanks to the intervention of the MP
The Leeds-based travel operator can now apply to draw on the Covid Corporate Financing Facility (CCFF) which allows large companies to mitigate disruptions to their cash flow by buying short-term debt in the form of commercial paper .
The move comes after Thirsk and Malton MPs Kevin Hollinrake and Andrew Jones, Harrogate and Knaresborough MPs petitioned the Treasury on his behalf.
Mr Hollinrake said: “This is very good news for Jet2 and it will make a significant difference to the business in the months ahead as it is able to resume operations and we are all starting 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 aircraft have been grounded for much of 2020 and all of 2021 so far and the additional headroom this provides will allow the company to weather the current industry disruption and ensure that ‘it can bounce back to the profitable business it used to be as we come out of lockdown’.
Jet2.com is one of the largest employers in the area with over 3,000 people working there.
Treasury Minister John Glen said: ‘I am grateful to Mr Hollinrake for bringing his concerns to my attention. The government recognizes Jet2’s contribution to the UK economy and its response to the challenges of the past 12 months. We are aware of the continued uncertainty facing the industry and Her Majesty’s Treasury continues to support the Department of
Transport’s work leading the Global Travel Taskforce to facilitate the resumption of international travel.
Jet2 Executive Chairman Philip Meeson. Jet2, added: “The group is grateful to both the Bank of England and the UK Treasury for the CCFF, the continued delivery of the coronavirus retention program and, as well as the responsible liquidity actions already taken by business, this provides the group with additional flexibility to meet the ongoing cost of disruption to our industry, ensuring that we can continue to support our excellent business through this difficult period.”
Jet2 Holidays is the UK’s second largest tour operator offering package holidays throughout the Mediterranean, Canary Islands and Europe.