Taxpayers to support Air NZ through $900 million debt arrangement; Deal enables Crown to convert debt to equity

Taxpayers to support Air NZ through $900 million debt arrangement; Deal enables Crown to convert debt to equity

The Government is stepping in to support Air New Zealand by providing a loan of up to $900 million.

Finance Minister Grant Robertson said it was clear Air NZ couldn't access this kind of funding elsewhere, and "without this intervention, NZ was at risk of not having a national airline".

Air NZ will be able to draw down on the “standby loan facility” if its cash reserves drop below a minimum threshold.

The deal gives the Government the ability to seek repayment by converting the loan into equity or getting the airline to do a capital raise after six months, should this be necessary.

The Crown already has a 52% shareholding in Air NZ. Robertson wouldn't be drawn on the likelihood of the airline requiring more government support, possibly to the extent there’s a government takeover, saying the situation remains "fluid".

Under the deal, Air NZ is also required to suspend its interim dividend payment, worth $123 million. 

Air NZ's share price plummeted on Friday morning. When share trading was halted on Monday, shares were trading at $1.54. As at 11.50am, the share price had fallen to 85 cents. Air NZ shares had been trading at around $2.80 in late 2019/early 2020.

“This agreement means that Air NZ is in a position to play its part in making sure Kiwis can return home from overseas and that essential flights and freight lines for goods like pharmaceuticals remain open by ensuring flights continue to and from key international destinations," Robertson said. 

"The agreement also safeguards the domestic network, with flights assured to all current destinations.

“While today’s action means the company can continue to operate, given the unprecedented shock to the global aviation industry caused by COVID-19, Air NZ has advised that there will unfortunately be job losses as capacity is cut.

“The Government is actively working with Air NZ on what can be done to support these workers. This includes work underway through a separate process to mobilise some of Air NZ’s workforce to other areas of our fight against COVID-19, including supporting the health response."

The debt facility will be provided in two tranches - one of $600 million with an effective interest rate initially expected to be between 7% and 8% per annum, and a second tranche of $300 million, with an effective interest rate expected to be in the order of 9% per annum.

The facility will be available for 24 months. The effective interest rates on both tranches will step-up by 1% if the facility remains after 12 months.

Robertson said this style of finance had been chosen because it could be done immediately.

Here's a statement from Air NZ:

Air New Zealand has entered into a debt funding agreement with the New Zealand Government. Under the terms of the agreement the Government will provide a standby loan facility (‘the facility”) of up $900 million to support the airline as it manages the unprecedented impact of the Covid-19 outbreak on its business.

The facility will provide Air New Zealand with the ability to draw down on funds should its cash reserves drop below a minimum threshold, providing additional funds if cash reserves are not at a satisfactory level. The facility was negotiated on an arms’ length basis, with each party having been independently advised. The facility will be provided in two tranches – a tranche of $600,000,000 with an effective interest rate initially expected to be between 7% and 8% per annum and a second tranche of $300,000,000 with an effective interest rate initially expected to be in the order of 9% per annum. The facility will be available for a period of 24 months. The effective interest rates on both tranches will step-up by 1% if the facility remains after 12 months. This debt funding will be used to support the airline’s business operations as it manages the implications of various government border restrictions and substantial reductions in travel demand.

The availability of each tranche of the facility is subject to certain conditions precedent, including agreeing an operating finance plan with the Government and other documentary conditions precedent. Another condition precedent which Air New Zealand must satisfy in order to have the facility available is the cancellation of the 2020 interim dividend of 11 cents per share (which equates to a total of $123 million) that was announced to the market on 27 February 2020 and was due to be paid to all shareholders, including the Government, on 25 March 2020. Air New Zealand’s Board of Directors believes that, given the highly uncertain environment that exists, the cancellation of this dividend is in the best interests of the airline, including because that action is a pre-requisite to the availability of the facility. Accordingly, the Air New Zealand Board has cancelled this interim dividend effective today.

Other terms of the agreement (which is in the form of a binding terms sheet to be converted into long form agreements), include: a prohibition on payment by Air New Zealand of any dividends or other distributions to shareholders (including the Government) while any amount is available to be drawn under the facility, the giving of security for the loan by Air New Zealand and certain of its subsidiaries over their assets (subject to certain exceptions), the Government having the ability to seek repayment through a capital raise by the airline after six months, or converting the loan to equity (subject to compliance with laws and any necessary regulatory and/or shareholder approvals), Air New Zealand giving various undertakings, representations and operational and informational and other undertakings, and typical events of default. NZX Regulation has granted Air New Zealand waivers from the requirements under the NZX Listing Rules to obtain shareholder approval for entry into and performance of the facility with the Government (as a related party of Air New Zealand). Those waivers were granted because of the recent, extraordinary decline in Air New Zealand’s market capitalisation, and on the grounds that Air New Zealand’s Board of Directors have confirmed that: entry into the facility is in the best interests of all Air New Zealand shareholders (other than the Government); there has been an arms’ length negotiation in relation to the facility, and that the Government has not influenced Air New Zealand’s decision to enter into the facility.

Both Air New Zealand and the Government acknowledge that the terms of the facility do not alter the fundamental principles of their relationship, with the airlines Board of Directors, Greg Foran as CEO and the Executive Team maintaining responsibility for all commercial and operational decisions of the airline.

Separately, and distinct from this agreement, the Government is working with Air New Zealand to ensure other key services can be provided, including repatriation flights, maintaining critical cargo transport lines and having Air New Zealand staff assist the health response. Those services will be provided for under separate commercial arrangements to be negotiated in the future on an arms’ length basis between the airline and the Government. 

Here's a statement from Robertson: 

The Coalition Government has stepped in to protect Air New Zealand with a significant financial deal that protects essential routes and allows the company to keep operating.

The Government and Air New Zealand have agreed a debt funding agreement through commercial 24-month loan facilities of up to $900 million*. The agreement also allows for the conversion of the loan to equity at the request of the Crown.

“Without this intervention, New Zealand was at risk of not having a national airline,” Finance Minister Grant Robertson says.

“Air New Zealand has a unique and critical role in our economy and society. Also, the Government owns 52% of the company, which means we have a responsibility towards it. We have acted swiftly to put this loan agreement in place and support our national carrier.

“This agreement means that Air New Zealand is in a position to play its part in making sure Kiwis can return home from overseas and that essential flights and freight lines for goods like pharmaceuticals remain open by ensuring flights continue to and from key international destinations. The agreement also safeguards the domestic network, with flights assured to all current destinations.

“While today’s action means the company can continue to operate, given the unprecedented shock to the global aviation industry caused by COVID-19, Air New Zealand has advised that there will unfortunately be job losses as capacity is cut.

“The Government is actively working with Air New Zealand on what can be done to support these workers. This includes work underway through a separate process to mobilise some of Air New Zealand’s workforce to other areas of our fight against COVID-19, including supporting the health response.

“This shows how we are all working together in New Zealand in this battle against the virus,” Grant Robertson said.

“Air New Zealand will play an important role in our economic recovery, when the disruption caused by this global pandemic is over.”

Separately, and distinct from this agreement, the Government is working with Air New Zealand to ensure other key services can be provided, including repatriation flights, maintaining critical cargo transport lines and having Air New Zealand staff assist the health response. Those services will be provided for under separate commercial arrangements to be negotiated in the future on an arms’ length basis between the airline and the Government.

* note

The debt funding agreement will be provided on, and was negotiated on, an arms’ length basis, with each party having been independently advised. The facility will be provided in two tranches – a tranche of $600,000,000 with an effective interest rate initially expected to be between 7% and 8% per annum and a second tranche of $300,000,000 with an effective interest rate initially expected to be in the order of 9% per annum. The facility will be available for a period of 24 months. The effective interest rates on both tranches will step-up by 1% if the facility remains after 12 months.

There are a number of other conditions precedent which Air New Zealand must satisfy in order to have the facility available, including the cancellation of the 2020 interim dividend of 11 cents per share (which equates to a total of $124 million) that was announced to the market on 27 February 2020 and was due to be paid to all shareholders, including the Government, on 25 March 2020.

 The loan agreement does not affect the Government’s operating position or net debt as it is a commercial loan which is expected to be repaid.

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Very high interest rate. Expecting the borrowing to be converted to equity at the appropriate time to save on interest.

I don’t understand the interest rate. Not a lot of help from the government there.

Maybe AIR NZ should go to a bank and see what they are offered first?

Agreed, who else is going to pour $900m to an insolvent airline currently burning through over $400m/month so they can try to restructure early in an economic slowdown? The reason AirNZ has a lifeline is it maintains a monopoly. AirNZ should be a warning about the need to carry deep cash reserves in cyclical industries.

What I've ready is that we're looking at 12-18months before a vaccine is out. Not sure how $900m is going to help if we're in lock down for next 12months...

@independant observer: Air NZ has about 1.1 billion itself. The cash and loans are probably about right to get the airline through one year assuming a heap of cut costs from parking up planes, laying off workers, lower hours, fewer materials use, fuel etc.

Coronavirus isn't a cycle. There is no lesson to be had here. If everyone was always planning for the worst, we would hardly ever move forward.

There will be NO Dividends to pay out due to Minimal Funds coming into their coffers.

The High Interest rate will be in Lieu of any Dividend payments IMHO.

What about the other shareholders ? Can they convert their shares into debt and receive the interest ?

Funny.

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So thats about $200 from each New Zealander. I sure hope Air NZ remembers our kindness in the future.

At 7-9% id hardly consider it kindness.

It is when the likelihood of default is 100%.

Government kills air NZ then pretends to help by providing an overdraft facility, don't worry I bought $10k at 90c - easy money. This is me laughing all the way to the bank hahahahahahahahahahahahahahahahahahahahahahhaahahahhahaahahahahahahahahhahahahahahahahahaha!

And people are absolutely outraged by the $25/week extra for beneficiaries. Which costs $100 per year per taxpayer.

AirNZ provide a service, those on a benefit do not.

I was unaware the beneficiaries have to pay the money back.

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Countless small businesses are about to go bankrupt. Many of them have been more prudent than Air New Zealand, with enough cash to last months, rather than the days/weeks of lost revenue it seems to take a multi-billion dollar company to go completely belly up. Will those small businesses get a bailout? Fat chance. They didn't over-leverage themselves like Air New Zealand, they know that if a rainy day comes no one is going to save them.

This is why people are rejecting capitalism. This form of it isn't fair, plain and simple. As I've said repeatedly, there will be social consequences for this.

In small not-for-profit land 3 to 6 months of reserves if all sources of income immediately stopped is what gets recommended.

Speaking of capitalism, imagine how much bigger the world's recession-fighting arsenal would've been if only global corporations were to be held to the same tax standards as local businesses? Can't think of a better time than now to slap a revenue tax on the likes of Apple Inc., Facebook, Microsoft, etc. to shore up billions in tax dollars for supporting honest businesses and workers.
Barring a few sales people (and of course, lobbyists), these companies contribute very little in terms of jobs to NZ anyways. I believe we can survive without the new line of bendy iPhones that are coming out shortly.

Air NZ is owned by NZ government. Any shareholder will do what they can to save their own company. Maybe government should also be a shareholder in every small company in NZ? Government is people embodied (at least in a democratic country like NZ, it is). If Air NZ has been poorly managed, it has been poorly managed by NZ Government.

"In November 2013 the New Zealand Government reduced its share in Air New Zealand from 73% to 53%"

And what happened? Did air NZ became a different entity? no it did not. 53% owned air NZ is the same as 73% owned in terms of controls. And Air NZ pre and post the sale have remain pretty much the same company owned and ran by NZ government.

See mine below. The Government makes no direction on how the airline has been run. It is a majority, passive investor. ( and a White Knight at that, as we are seeing again!)

You're talking nonsense. In no way was Air New Zealand run by the government. The government receives a dividend, the company is run by the board and executives, with minimal government involvement.

If it were run by the government it would be much lower quality and more expensive, no doubt.

As the majority shareholder, air NZ appoints those directors, they in turn appoint the executives. Like any other shareholders the government can chose to trust its appointed directors and let them run the company as see fit or try a more hand on approach. What is nonsense in this? if government does not own AIR NZ why it is audited by NZ Auditor General?
NZ Government has tried to behave like a private shareholder in its profit oriented companies. It may change that now. It may not. I do not know. It may be for better or worse, I dont know. But had NZ government been in total control of air NZ up to now? absolutely yes.

And all of the politicians are going to voluntarily give up their Airpoints balances to help save Air NZ.

Yes, a prudent business would not offer free travel to MPs and partners for life.

As predicted earlier in the week, nationalised by morning smoko even! Good step, we'll need the airbridge for medical supplies once things start getting dicey...

I honestly do not get what some commentators mean by "nationalise". Air NZ is already in absolute control of the government as it owns more than 50% of its voting rights. What will change if the ownership is increased to 80%?
Do you see Air NZ running as a "public benefit entity" that operates to meet non financial objectives? how this will look like? what those objectives be? What operating model you have in mind?

The Government has been at pains to state over many years; both strands of politics, that it does not interfere or control the day-to-day operations of Air New Zealand or issue instructions on how it should be run. That's what it leaves the airline Board and CEO to do. The Government remains ( until what's coming!) a passive investor.

you must be kidding BW. Who appoints more than 50% of Air NZ directors? AIr NZ financial statements are audited by the Auditor General for goodness sake. Come on man. Have you every heard substance over form? Air NZ substance is pure and simple Government owned business.

Will NZ government appointed directors behave contrary to what the NZ government want? No. NZ government might have selected a particular corporate structure and strategy for how it runs its profit oriented entity and they may or may not change that strategy once the dusts of the current global storm are settled. If the Cabinet replaces the Air NZ board of directors, what will change? can you please elaborate on that?

The Government is not looking to replace the Board of Directors out of choice. It has only two options in the current market of uncertainty (1) Leave it alone, and see what happens ( What, if this goes on for another month, years, decade?) or (2) Pump lifesaving liquidity into the business, as it did last time, and see what that achieves.
You can jump up and down all you like; look at how the 'Government' appointees have performed or not, and whether their roles was at the behest of The Government or not, but that makes no difference to where we are today.
The airline is basically bust. It has to change. The Government is the only one with the capacity to do that, or New Zealand will be airlineless.
My view is that it will end up 100% in Government hands ( not by choice) and given the outlook for the World economy - will stay there.
Who will run it? Probably the current management under active Government instructions, as opposed to what we had until today.

I have not problem with that. It is already that in my opinion. if Air NZ has been operating a certain way, it is only because the government wanted it to operate in that way. If NZ government wants to change their operation model because they want to or have to, they will change it. There is nothing new in that. 100% owned or 51% owned are the same. The nature of air travel business remain the same. The nature for its demands. the nature of its cost inputs, etc. And it is still owned by the same owner.

If it's 'already that' then the coming changes will make absolutely no difference?
Previously unexpected, society-crucial businesses are going to end up on the Public Balance sheet - one way or another.
The Market that we thought was 'so good' up until 2008 has been shown to be the failure that we see about us today.
It isn't Corvid19 that's causing all of this - it's the way the Markets have become structured, and their inability to cope with the unexpected.
What we will get when this all dies down, will be a set of industries back in Public 'control' - for better or worse - perhaps banks, power companies, transport provider - necessities to any society, and we will set about running them in a way that 'get's us through' to wherever the next System is. What that is I can only guess, but my guess won't be what we had in January 2020.

As they relate to air travel. No they will not change the slightest . You still will be buying the air crafts, the fuel etc from others. In intentional travel, you will still compete with other airlines. You will still need to accommodate ups and downs of air travel. You will still need to ensure that you are making more money by providing the air travel than you are spending on it. The same with power companies and transports. They have never been "open market" operators. They have been owned by national or local governments. May be government will change their operational objectives. Maybe instead of winter power subsidy to some, the power companies are ordered to give them free power.

Banks are a different story (and other financial institutions such as insurance, finance companies and the likes). They have been owned by private individuals. Changing their ownership (to government) is a meaningful change.

Agreed on all of that.
But your comment remind me of my words to my direct-report, way back in the mists of time...
I'd just gone through an explanation not dissimilar to yours above - 'what had and what was happening' to justify what my positions were..
He just looked at me calmly and said
"But what happens next?"

It may very well end up entirely back on the SOE register before long....I do think the airline ought to have some kind of regional service charter that provides an equitable air service to the regions. After living regionally for some years, I have to say that despite the majority govt shareholding the airline management have been allowed to pursue a completely unfair approach to local market pricing. Its just absurdly expensive to fly out to and in from the regions. If the commercial imperative was reduced somewhat allowing fares to be lowered to a sensible point and a dependable network of routes actually maintained then I think that would be a good thing for everyone.

Spot on.

Unfair marketing prices as opposed to what fair prices? you will need competition for fair prices. You will never get fair prices in a monopoly, never, ever. It will either be at the expense of customer (the current situation) or the expense of provider (the desired situation). Both cases have their own significant draw backs and both will be unfair to some.

It’s your choice where you live. I absolutely reject the notion that you should be subsidised by others. Change your needs or suck it up. Don’t look for others to make your life easier. Socialists are a disease.

Luckily we over pay our illustrious "Leaders' to pay the excess for us all. We have been paying for them flitting around the World for years...So theoretically they should absorb the excess baggage of this Multi-Million Grand Gesture.

Plus they could forego any Pay...whilst this Pandemic Peters and others........shell out.

But what we could do is park up the used less Planes and use em to House our Homeless...the ones they did not support, when buying up Investment Houses ...themselves. To make themselves a mighty dollar.

Now that would be a wonderful gesture......but I do not think it will give the thumbs up...but a two fingered gesture like they do when Economical Housing is mentioned. Could not build rapport....never mind a tiny House...

The government should of stipulated, that not ONE employee in Airnz should be on over 100k for the next 12 months, you can't use the excuse "if we don't pay market rates we will lose people to others in the industry", as they have no market now.

Why the fixation on $100K? That's not that high a number in 2020, not to mention in Auckland. And what would you do about the huge amount of industrial action that would kick off? You wouldn't have a functional airline, all for the sake of one arbitrary number.

Because what you thought was a high salary in 2020 is flying out the window by the day...look at the pain after one week of the border shut down..now think about what it will be like in two months. Tourism was our second biggest sector, that has just been taken out of the economy.

I'm not sure how you plan on running an airline when you don't have any pilots, but OK. As for 2020 salaries - expenses and living costs are still at 2020s levels. The stock is already below $1, how low do you think it would go after most of the staff decide to leave and pursue grievances?

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Poor Mr Foran. He thought he was coming back to New Zealand to lead a money-making monopoly machine with an underwritten government guarantee. Destined to be feted for eternity by an army of overpaid sycophantic underlings. Just like Fyfe and Luxon before him.

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Too kiwi to fail, privatise the profits and socialise the losses.

Sadly I'm seeing better run businesses that won't survive more than three months at this rate and are unlikely to be the beneficiaries of corporate welfare.

Planes will be sitting on tarmacs at least till border restrictions are relaxed...which will be for a very long time. Many airlines will go under in the process, which will lead to less competition and more expensive prices to travel (imagine the debts to payback) when the dust settles. The world will be a different place I reckon.

900m here, 12.1 billion there, pretty soon it adds up to real money.....or real debt....

Was always going to happen. 20 years ago I worked for Air NZ. They had a presentation on what a difficult business the airline business is. Why? Because you're competing with companies which are subsidised by their respective countries. So they can be technically bankrupt but still operating.

So it's hard for a private airline to ever compete. I bet we'll see pretty much every country bail out their national airline.

Good deal for the tax payer that is.

Think Fyfe made public comment the last few days saying monthly running costs around $450m for airline? Not sure what costs that includes. But $900m won't last long if that's the case. Its might be 2-3 months and its gone - then if we're in lock down for 12months waiting for a vaccine....

They're not 'running' much - so those earlier operational costs are irrelevant. The government needs some planes in the air as a goods supply route. Simple and sensible as that.

An A320 carries more than 100 people right? Assuming we'll need to relax our rules idc around public gatherings.

Air New Zealand is in the airline business. Ansett, September 11th, SARS, The GFC, etc. It has been pretty good for a while. But when the sun is shining it is time for saving. Not largesse. It will always rain eventually. Why do the taxpayers always have to be the ones to provide the umbrella?

So the public who will be loaning Air NZ 900m will be repaid with the interest?

I’m not against bailing out air NZ but as with any loan I’d expect to be repaid.

Hmm it’s now the second time that Air New Zealand has been bailed out by the NZ taxpayer. Remember the Ansett investment fiasco? Maybe it’s time to nationalize Air New Zealand into an SOE....we could call it the National Airways Corporation (NAC).

Hmm it’s now the second time that Air New Zealand has been bailed out by the NZ taxpayer. Remember the Ansett investment fiasco? Maybe it’s time to nationalize Air New Zealand I to an SOE....we could call it the National Airways Corporation (NAC).

Anyone buying the 40% dip :D

This is a different situation than Ansett crisis. I don't expect a repeat of the Helen Clark bounce. If you are brave enough to buy in and the share price does recover. Take your profits and get out. Airlines are a shitty long term investment.

I'd rethink that. Most countries will need 1 or 2 national carriers. AirNZ is ours. It's worth the investment, be it from government or the public.

I read a lot of comments saying that it is unfair that many prudently run businesses will go under where Air NZ, a supposedly poorly managed Air NZ, is rescued by government bail out.

I say any major business of strategic importance that is essential for NZ long term survival will deserve a similar treatment. However many prudently ran businesses may not have strategic importance. So unless we are comparing apples with apples, then it is really pointless to bash NZ government for a prudent measure (one likely to be taken by many other prudent governments, or any other governments who might have been in power now).
Also, those who say private profit social losses, Air NZ profit have benefited its major owner (NZ Government) the most over the past years as they got 28% of all its profits plus 52% of all its dividends. So that is socialised profit. Or is it something else?

What happens next?
I'll say this quietly, so as not to frighten nervous shareholders ....'yours'...

Australia's treasurer, Frydenberg refuses to rule out nationalising airline

I do not know. Future is yet to come and I have never been a visionary. All I am saying is that we have to be factually correct when we talk about a particular matter such as air NZ. That is all.
The impact of this virus on modern airlines all over the world is truly unprecedented. You cannot say that their ultra hard time is due to their poor management. What business organsiation can continue on full scale if their income is nil for 12 months or more?

Maybe this economic crash (or whatever) causes humans to pursue economic activities for human love and kindness. Maybe profit earning becomes a thing of past. I do not know. Maybe human technology and knowledge collapses and we go back to stone age. I do not know.

.

Don't start with assumptions.

Because they lead to comments like 'essential for long-term survival'.

Given the energy-source, the remaining stock of same and the fact that it not only powers the 'planes, iit underwrites the incomes of buyers of tickets
....... aviation as we have no viable alternative to technologically, was gone in the near-term anyway.

Mass aviation tourism is gone - aviation itself will be with us for some time to come.

I'm not sure Kate. I'd prefer a comparatively short airline flight to several days/weeks in a disease ridden boat, be it corona virus or noro virus!

What I mean is the masses won't be able to afford the overseas holidays as they have done in the past. A hollowing out of the global middle class (the numbers that keep the proliferation of airlines in business) is a near certainty (unless a miracle treatment ends the mayhem in a couple of weeks). But I think much of the deletion of 'wealth effect' on spending by the middle classes has already occurred.

Fair point Kate but that is why the basic economic models that drive policies need to change. It is the middle classes who drive most of the economy, and if they get further gutted things will get a lot worse and we stand closer to revolution. I sincerely hope the pollies have understood this. They really need a big lesson in economics to understand that pandering to big money is a shorter path to break down than any other.

"Do you hear the people sing?
Singing the song of angry men!
It's the music of a people who will not be slaves again!"

It will be business as usual once Corona is vanquished, which it will be.

The modern notion of BAU might become extinct.

When the immediate threat of the coronavirus has past and as things slowly get back to a 'new normal' has any one else thought about the price of airfares again?

My thoughts suggest that there will be no bargains or sale fares for International travel for a long time.

Those that had planned to travel but had to cancel will be most likely ready to book and go once again.

After 1 year or so of No International income there will be debts to pay back ( NZ Government - Air NZ ) so they will need to charge flying customers at a premium rate ( high demand plus lack of recent profits )

Just my thoughts!

AirNZ is built on air with such a competitive sector. Once the air is infected. Its all over rover ! Majority of planes should already be converted internally to cargo capacity with all seats remove. Marketing should be securing safe-flight cargo transport deals with ready-to-pay governments around the world where the plane is guaranteed to not carry the virus.

But no, easy path is to ask Government because its money for the boys who want to use some funds for share-buybacks once the shares bottom out. Note no provision in loan agreements for no share-buybacks. Once the shares are bought-back and spike up, the loan is repaid and all is good and even better than before for the elite management already planning their next resort holiday.

Boeing seeks $60bn bailout from US govt. Former UN ambassador Nicki Haley resigns from Boeing Board citing disagreement with Board's plans. There will be plenty of second hand planes available, but new could be hard to come by.

And another 1billion to benaficiries who have never worked to buy a bottle or two. Cheers to socialism and soon Chinese communism.

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