U.S. could take equity shares in coronavirus-hit airlines – officials

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The massive financial rescue plan passed by the United States Congress designates $50 billion for the airline industry. coronavirus

AMERICAN AIRLINES. A Boeing 737 flown by American Airlines takes off from Ronald Reagan Washington National Airport in Arlington, Virginia, on March 11, 2019. File photo by Andrew Caballero-Reynolds/AFP

WASHINGTON, USA – The United States government could take equity shares in airlines and other troubled but vital American corporations as it moves to stabilize an economy amid theWhite House economics adviser Larry Kudlow said the government should get a stake in companies that receive direct cash grants from the federal government.

"I think in return for direct cash grants, which is what the airlines have asked for, I see no reason why the American taxpayer shouldn't get a piece," he said ontalk show, also said the government could take equity positions in return for infusions of taxpayer money."Some of them are very good companies that just need liquidity and will get loans. Some of these companies may need more significant help and we may be taking warrants or equity as well as that.

 

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