The US government can provide certain financial guarantees and capital injections to US airlines in exchange for becoming a partner.
This is what US Treasury Secretary Steven Mnuchin argues, Dow Jones reports, citing sources.
Steven Mnuchin has previously mentioned that direct liquidity support for airlines could be part of the possible aid package. It was not clear what form the support would take, but it is likely to be instruments that can be converted into shares at a certain price and that could provide the government with ”substantial compensation in return,” Dow Jones reports.
In the support package proposed on Wednesday evening, $50 billion was intended to go to airlines, with $25 billion of that going to loans while the remaining half would be given to the companies directly.
Source: Direct News Agency
