US could get stake in airlines in exchange for virus grants
The Trump administration is raising the possibility of the govt getting ownership stakes in US airlines in exchange for US$25b in direct grants to help the carriers survive a downturn caused by the coronavirus pandemic, according to people familiar with the matter. Details were unclear Thursday, but one approach being considered by treasury secretary Steven Mnuchin is to give the govt warrants — options to buy shares in airlines that accept grant money, the people said. A key factor would be the price at which the govt could exercise the warrants. Airlines would balk if the govt could buy their shares near the current, depressed prices. Aid to airlines is one of the last sticking points in Washington's negotiations over the economic-rescue plan. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-03-27/general/us-could-get-stake-in-airlines-in-exchange-for-virus-grants
https://portal.staralliance.com/cms/logo.png
US could get stake in airlines in exchange for virus grants
The Trump administration is raising the possibility of the govt getting ownership stakes in US airlines in exchange for US$25b in direct grants to help the carriers survive a downturn caused by the coronavirus pandemic, according to people familiar with the matter. Details were unclear Thursday, but one approach being considered by treasury secretary Steven Mnuchin is to give the govt warrants — options to buy shares in airlines that accept grant money, the people said. A key factor would be the price at which the govt could exercise the warrants. Airlines would balk if the govt could buy their shares near the current, depressed prices. Aid to airlines is one of the last sticking points in Washington's negotiations over the economic-rescue plan. <br/>
