Trump suggests the US could buy plane tickets and fuel in advance as a way to help struggling airlines and oil companies
During comments to the White House press pool on Friday, President Donald Trump suggested that the US government could look into advance purchases of fuel and flights as a way to help struggling energy companies and airlines.The oil industry has been in turmoil for several weeks as fuel demand plummets due to people around the globe staying home because of the coronavirus pandemic.
Similarly, the global airline industry has seen revenue effectively dry up as travel comes to a halt around the world.Although the first major federal financial assistance program related to the pandemic, the CARES Act, offered up to $50 billion of aid for US airlines, an oil company bailout did not appear to be imminent. Treasury secretary Steven Mnuchin said that the government was looking at alternatives, including taking stakes in energy companies.
Although airlines are in relatively stable position for the next few months under the CARES Act and as they seek to raise cash from other sources, including their frequent flyer programs, Trump said that the same idea of pre-purchases could apply to airlines. It was not immediately clear what those pre-purchases could look like, although they would presumably be for vouchers or credits that could be used for government travel once social distancing guidelines and governmental work travel restrictions are lifted.
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