London evaluates the possibility of buying airlines due to the coronavirus crisis

London evaluates the possibility of buying airlines due to the coronavirus crisis

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The British government is evaluating the possibility of acquiring a stake in airlines and other companies hit by the COVID-19 pandemic, the economic newspaper Financial Times reveals on Saturday.

The idea is to inject billions of pounds into companies like British Airways (BA), part of the IAG airline group, in exchange for shares that would later be sold to private investors, the newspaper learned from sources familiar with the plan.

Airlines have been hit hardest by the new coronavirus pandemic, after being forced to cancel flights due to restrictive measures imposed by countries to contain the spread of COVID-19.

The British government appears to be considering this option after banks alerted it that measures already in place to tackle the crisis would not prevent the collapse of companies.

British Economy Minister Rishi Sunak announced yesterday that the Government will pay 80% of the wages of workers who are at risk of being fired by the coronavirus epidemic.

The plan will cover salaries up to a total of £ 2,500 a month (€ 2,700) and allow employees to keep their jobs even though their companies cannot pay them.

“There are certain sectors on which a capital injection in exchange for shares will be necessary,” a person familiar with this possible plan told the newspaper, adding that for many companies a loan in the end “will not work” to help them get out. ahead.

Another measure of the British Executive has been to freeze the payment of VAT tax to companies until the end of June, and firms will have time until the end of the year to pay the amounts due.



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