President Trump told reporters at a White House press conference on Friday afternoon that his administration was considering buying millions of discounted plane tickets to inject extra liquidity into embattled airlines to see them through the COVID-19 crisis. The measure could help airlines break even if social distancing rules such as blocking the middle seat becomes mandatory and will allow flights to continue even if demands remains sluggish post-pandemic.
“… One of the ways we can help the airlines is (to) buy tickets at a very large discount, maybe 50 per cent off or maybe more,” the President mulled. “And you buy into four or five years’ worth of tickets, and you infuse them with some cash,” he continued.
“And in the meantime, we’re flying the people of our country for, you know, a fraction of the cost that it would be if the — you know, when the airlines get back.”
Trump said he had liked the idea of buying discounted tickets “since the beginning” of the crisis and that such a measure would be “additional help” for airlines that have already received billions of dollars in taxpayer funded grants and low interest loans.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) signed by President Trump this month provides a total of $2.2 trillion in economic stimulus, including $61 billion in grants and loans for the nation’s airlines. More than half of that figure has been set aside to cover the wages and benefits of employees until the end of September.
Some airlines, including the likes of United Airlines and Southwest, have, however, signalled that involuntary furloughs and even job losses may be needed once the money runs out.
” … look, the fact is that the airlines are going to be fine the way it is now, but I like that as an additional help for the airlines,” he said of his idea of buying tickets at a “good discount”.
“We’re going to keep our airlines and all those employees totally intact,” President Trump continued, going on to say that his administration was “trying to make the airlines work again, and we will”.
