EU passes €350 Mn Finnish support to Finnair for COVID-19 led losses

EU passes €350 Mn Finnish support to Finnair for COVID-19 led losses

The European Commission has reportedly accepted Finland’s €351,38 million support for its flag carrier- Finnair within the EU State aid regulations. The help aims at compensating the largest airline of Finland for the damages the company suffered owing to the coronavirus pandemic between March 16, 2020, and December 31, 2020.

Margarethe Vestages, Executive Vice-President of the European Commission was reportedly quoted stating that the aviation industry has largely been hit by the travel restrictions imposed by the government to curb the spread of COVID-19 infection. Through the financial aid, Finland will make up for all the damages suffered by Finnair due to the ban.

Notably, Finnair is a leading airline company that operates across Finland. In the year 2019, the firm recorded nearly 15 million passengers, accounting for 67% of the total number of passengers transported to and to and from Finland.

Seemingly, the restrictions made by Finland and other destination nations to contain the coronavirus spread adversely affected the intercontinental and international flight operations of the aviation company. As a result of this, its suffered huge losses until December 31, 2020.

For the record, in the first phase of the compensation, between March 16 to June 30, 2020, the assigned funds will help reimburse the losses the aviation giant suffered owing to the travel restrictions imposed in Finland and other European Union and non-EU nations.

In the next phase of compensation starting July 2020, the allocated amount will compensate Finnair for all the losses that were caused due to the new and existing travel restrictions, given that most of the EU countries have lifted the travel ban in a bid to revive the economy.

As per a press release by the European Commission in 2019, Finnair operated with 59 aircraft with flights to over 130 destinations that are mainly focused on the European and Asian belts.