Budget airline EasyJet has secured a £600million coronavirus loan from the UK Treasury and the Bank of England.
The carrier, which grounded all its planes last month as a result of the virus outbreak, has received the funding through the Covid Corporate Financing Facility (CCFF) – a scheme to help larger companies through the disruption caused by the pandemic.
EasyJet said it had also made a request to borrow another $500million (£407million) through creditors, which would be secured against aircraft assets.
The airline said its planes could possibly be grounded for a “prolonged period” – but that it expected to have access to cash reserves of around £2.3billion by April 9.
However, it added that it would “continue to consider” other liquidity and funding options.
Johan Lundgren, EasyJet chief executive, said: “We remain absolutely focused on ensuring the long-term future of the airline, reducing our costs and preserving jobs, to make sure EasyJet is in the best position to resume flying once the pandemic is over.”
The CCFF provides businesses with access to funds at commercial rates that were available before the coronavirus crisis – and any UK company that had an investment grade rating before the pandemic can apply.
The news comes as EasyJet and the British Airline Pilots Association (BALPA) reached an agreement on furlough arrangements for EasyJet’s British pilots and cabin crew.
Around 4,000 of the 9,000 will be furloughed during April and May, according to the Guardian.
Mr Lundgren added: “We are pleased that we have now reached agreement with both Unite and BALPA regarding furlough arrangements.”
Following the FCA’s recent update on reporting guidelines, EasyJet said it would release a trading update in the second half of April and its half-year results announcement would take place on June 30, 2020.