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Virus relief bill has US taking stakes in airlines: report

AFP  |  New York 

The US government plans to take stakes in major airlines in exchange for aid included in a USD 2 trillion coronavirus economic rescue package, the Wall Street Journal reported on Thursday.

Treasury Secretary Steven Mnuchin indicated the plan for government stakes in conversations with lawmakers, said the report, which cited unnamed officials.

The newspaper said the precise terms of the arrangement were not yet clear, but one option is that the government could receive a warrant that allows it to buy shares at a certain price.

The bill that passed the Senate includes USD 25 billion in loans to US airlines and another USD 25 billion in grants.

Major US carriers including United Airlines and Delta Air Lines did not immediately respond to a request for comment.

The coronavirus has left the worldwide airline industry in dire straits as governments bar significant air travel to try to limit the spread of the virus.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 26 2020. 21:22 IST
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