US President Donald Trump dropped another big hint that he is set to bail out US airlines and planemakers on Wednesday.
Speaking to reporters as part of the White House’s daily coronavirus briefing, President Trump said, “Airlines would be number one. You go from having the best year they have ever had to having no passengers because of what we have had to do to win this war – and it’s a war.”
Following a series of tough days on Wall Street, the President moved to allay fears over the future survival of the US airline and aviation industry as the COVID-19 outbreak continues to impact the industry globally.
While the President stressed that the details still need to be ironed out, including where the lines would be drawn to decide what industries were eligible for relief, he stressed the help was coming.
Despite the details being sketchy, some experts predict the Trump administration is planning a bailout package of approximately US$50 billion, which has received support from both sides of the US political spectrum.
Senator Elizabeth Warren signalled tentative support for the program, with some stipulations expected, tweeting, “Let me be clear: We’re not doing no-strings-attached bailouts that enrich shareholders or pay CEO bonuses. Period.”
Unlike the bank bailouts during the global financial crisis, this package is expected to include strict stipulations regarding executive payouts, as part of US Treasury documents seen by The Washington Post.
This revelation comes as major US carriers like Delta reveal they will cut capacity by 70 per cent, parking 600 aircraft, while United has said it will be cutting capacity by 60 per cent.
President Trump reiterated his support for the companies and the broader US stimulus package, stating, “This is not their fault. We have to help them.”
https://twitter.com/realDonaldTrump/status/1239685852093169664?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1239685852093169664&ref_url=https%3A%2F%2Fthewofa.com%2F2020%2F03%2Fvolatile-day-for-us-shares-as-industry-awaits-bailout-news%2F
The reassurance comes after President Trump tweeted on Tuesday he would be “powerfully supporting” airlines and the wider industry to beat what he called the “Chinese Virus”.
On Monday, Airlines for America, a trade body that represents Delta, United and American, called on the US government to provide an immediate bailout.
The organisation said, “This is a today problem, not a tomorrow problem. It requires urgent action.”
It added the coronavirus crisis “appears to have no end in sight” and urged the government to provide grants, loans and tax relief. It called its impact “staggering”.
Story by Stephen Kuper
