British government intends to redeem share in authorized capital of airlines

The UK government is considering buying back stakes in airlines and other companies most severely affected by the coronavirus pandemic, Report informs citing TASS, with reference to Financial Times.

According to the newspaper, the Cabinet of Ministers intends to take such a step because this week's announced government plan of credit guarantees to businesses for 330 billion pounds ($400 billion at current exchange rates) may not be enough to save many companies from bankruptcy. Among the companies whose shares the government can buy is British Airways, which, like all other airlines, found itself in a complicated situation due to a sharp drop in flight volumes. It is planned that at the end of the crisis, the government will no longer participate in these companies.

"The main goal is to solve the problems of the companies that will need own certain funds in addition to loans, as the financial structure of each company has limits on the amount of debt depending on the area in which they operate," the newspaper quotes the source.

A source in the government confirmed to the newspaper that such negotiations are underway. According to the Financial Times, their success is not yet guaranteed in light of their extreme complexity.