US airlines desperate for cash but fear government involvement

US airlines have been all but paralyzed by the coronavirus, and as they face an uncertain future they have turned to Washington for financial help, but that might mean ceding part of their companies to the federal government. Industry sources say a behind-the-scenes tug of war has begun between airline executives and the US Treasury, which is in charge of distributing the $2.2t stimulus package signed by President Donald Trump into law late last month that includes $50b specifically for airlines. Treasury Secretary Steven Mnuchin has spoken of airlines as a priority, saying on Tuesday he was aiming to move "very quickly" to determine how to spend the money, half of which is earmarked to pay employee salaries through September 30. The Treasury wants to avoid the impression that it is giving airlines a blank check, fearful of a repeat of the public ire that followed Washington's response to the global financial crisis more than a decade ago. Aiming to get taxpayer money paid back, the government is considering taking an equity stake in airlines, at least temporarily. That an outcome is one the four major US carriers -- Delta, United, Southwest and American -- want to avoid, industry sources say, as they fear Wall Street would reject having the government as majority shareholder, even though the companies desperately need the cash.<br/>