Loganair which provides lifeline services to Scottish islands is seeking a government bailout to weather the storm of the coronavirus.

The Scottish airline, which gets subsidies from the Scottish Government for some remote routes, had already cut 'lifeline services' as it emerged it has further cut flights after in mid-March saying it would reduced flights by half in April with an emergency timetable due to the impact of coronavirus.

Now it says it plans to approach the UK government for financial aid shortly.

The airline's chief executive Jonathan Hinkles has now said that while the Department for Transport and Civil Aviation Authority have been providing “superb” operational support, this would not be enough to keep it afloat.

“I think what was made clear by the Chancellor last week is there won’t be an industry-wide bailout programme, airlines have got to try recourse to their shareholders and their lenders first. We respect that, that’s a fair position to take,” Mr Hinkles said.

“But [the Chancellor said] if you can’t bridge the gap after that, only then can you come and talk to us.

READ MORE: Coronavirus -  Scottish airline reduces 'lifeline services' in emergency timetable

“I do think that like the vast majority of UK airlines we will be going back to take up that invite for further conversation with the Treasury in coming days because we have to.”

Chancellor Rishi Sunak said last week that the government would only step in to help airlines as “a last resort”, and that decisions would be taken on a “case-by-case” basis.

In mid-March, Loganair, which also delivers mail and goods, including pharmaceutical products, to island airports. said forward bookings had dropped by around 75% compared with their usual levels in the last four days.

The Herald:

While the airline said it would maintain “lifeline services” to the islands, it admitted their frequency will be reduced.

By the end of the month, Loganair was to cut operations from around 214 to 95 scheduled flights each weekday - a cut of 55%.

Air services between Kirkwall on Orkney and Sumburgh on Shetland to Inverness and Glasgow were to be  suspended from April 17 until May 31. There were still to be weekend flights.

The emergency timetable changes meant for Sumburgh Airport on Shetland there would be two daily services to/from Edinburgh via Kirkwall and two daily services to/from Aberdeen.

For Benbecula there will be two flights per day to Glasgow shared with Stornoway, the main town of the Western Isles, which is having Edinburgh services suspended till the end of May.

But even these have now been further cut.

A $2 trillion stimulus bill passed in the US last week includes $58 billion in loans and loan guarantees for passenger airlines and cargo carriers.

Mr Hinkles said Loganair had been working with its owners, shareholders and suppliers to try and minimise cost.

But he added: “There is a wider package of support that the government can put in place to help airlines get through this impossibly difficult period.

“This isn’t about deferring payments, it’s about getting rid of payments.

“What no airline can afford to do is rack up huge debts for the future that it’s going to have to service, because we are looking at a position even after this where the demand environment is going to be depressed for quite some time.”

The airline’s staff have already been  asked to consider measures aimed at protecting employment levels, including reducing working hours by 20% and accepting a 20% reduction in salary as a result or taking a period of unpaid leave.

Glasgow-based Loganair has over 70 routes across Scotland, England, the Channel Islands, Belgium, the Isle of Man, Norway, Ireland, Denmark and Germany.

Loganair announced it would take on 16 routes flown by Flybe and hire some of its staff after that airline collapsed earlier this month.

Mr Hinkles said the plan to recruit former Flybe staff will continue, but with a delay to employment start dates.

Asked by the BBC whether he expected British Airways to seek further government support, Loganair’s Jonathan Hinkles commented: “The magnitude of what we’re dealing with here as an industry is so significant that I would be surprised if any airline is able to get through this without a request for support in some form or another.”

Joanne Dooey, president of the travel agents group, the Scottish Passenger Agents' Association said:  “The importance of Loganair and its contribution to the Scottish and UK economy cannot be underestimated. Loganair operates lifeline services for the people of Scotland, especially those in the remotest parts of the country.

"It should not be forgotten that, in addition to flying passengers, Loganair also transports essential medicines, mail and newspapers which would not otherwise reach those who need them. Loganair’s routes also provide the framework for connectivity from these areas to the rest of the world.

“As a provider of these essential services, The SPAA urges the government to consider any application which Loganair may make for emergency support during these unprecedented times.”

Meanwhile budget airline Easyjet has grounded its entire fleet, while Ryanair boss Michael O’Leary has said he does not expect the airline to fly in April or May.

Virgin Atlantic will fly just six out of its 41 aircraft for passenger and cargo services in the coming weeks, and has suspended all flights from Gatwick, Manchester, Glasgow and Belfast.