(TAN): The United States Treasury Secretary Steven Mnuchin has indicated that the federal government would take stakes in airlines in exchange for the grants it will offer the firms as part of the coronavirus stimulus package worth USD 2 trillion, reports said.
According to reports, the bill that the Senate passed will give the airline companies a total of USD 50 billion – with one half in loans and guarantees, and the other in direct grants.
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The bill will also allow Mnuchin to oversee how the grants are distributed, and whether any compensation is required, as per reports.
Mnuchin had reportedly said the final aid package could comprise a possibility for the government to earn equity in the businesses that obtain direct grants.
Airlines endured massive blows as a result of the pandemic, with many compelled to severely reduce their services amid a decline in demand and travel restrictions, reports said.
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United Airlines will bring down its international schedule by about 90% in April, while flying six daily services covering Asia, Australia, Latin America, the Middle East and Europe. The carrier will suspend all operations to Canada from April 1, and its final Cape Town-New York/Newark service will take off from Cape Town, South Africa on March 28.
American Airlines has offered to waive change fees for passengers who book flights until April 15. The offer is available for all of the airline’s non-refundable published fares.
