UK Government Plans To Buy Stakes In Airlines
Amid a worldwide drop in the number of people flying due to the coronavirus, the government of the United Kingdom is considering buying a stake in British Airways and other UK based airlines.
According to reports in the Financial Times, the UK government is drawing up contingency plans to buy equity stakes in the countries’ airlines and other businesses hardest hit by the coronavirus pandemic. This latest news comes after warnings that the economic packages that the government has announced so far to help UK businesses weather the storm will not be enough to save the airlines.
Billions of pounds will be used to buy shares
In its plan, the United Kingdom would see billions of pounds of taxpayer money being used to purchase airline shares, which will then later be sold back to private investors according to people familiar with the idea.