British Government Wants to Take State Interest in Affected Companies
The British government is working on a plan to take a state interest in airlines and other companies hard hit by the corona crisis. The Financial Times writes this based on insiders.
According to the business newspaper, the British government would like to invest billions of pounds in companies, including British Airways.
That would happen in exchange for shares that could eventually be sold back to investors.
Such measures are also being considered in other countries. For example, the German government has already announced that it will not exclude the nationalization of essential companies to prevent them from falling over.
Airlines such as British Airways, part of the international airline group IAG, are severely affected by the outbreak of the new coronavirus.
Numerous countries have imposed travel restrictions and no-fly time, which means that flights can be flown less and demand for tickets has dried up considerably.
Earlier this month, the curtain fell for the British company Flybe. It had been in a difficult financial situation for some time. Due to the virus outbreak, the company got into extra trouble, which gave the final push.