China Considers Cash Injections, Mergers to Bail Out Airlines
- Moves may include injecting billions of dollars into carriers
- Bigger airlines may be allowed to merge with smaller ones
An empty baggage claim area at Daxing international airport in Beijing, Feb. 14.
Photographer: Nicolas Asfouri/AFP via Getty ImagesChina is considering measures such as direct cash infusions and mergers to bail out an airline industry crippled by the coronavirus outbreak, according to people familiar with the matter.
One proposal involves allowing some of the nation’s biggest carriers -- which are controlled by the state -- to absorb smaller ones suffering the most from the collapse of travel, the people said, asking not to be identified because the information hasn’t been discussed publicly. Another option being explored is for the government to inject billions of dollars to bail out the industry, they said. Discussions are ongoing, and no decision has been made on what the final bailout package will look like, they said.