By Jamie Freed and David Shepardson
By Jamie Freed and David Shepardson
SYDNEY/WASHINGTON, March 20 (Reuters) – Shattered airways have been left counting the price of authorities assist as politicians in the USA and New Zealand set out situations for bailouts wanted to soak up the shock of coronavirus.
Situations embody provisions that loans might convert to authorities fairness stakes, with Air New Zealand Ltd’s AIR.NZ bailout additionally depending on suspending its dividend and paying rates of interest of seven% to 9%, whereas U.S. airways can not improve govt pay or offering “golden parachutes” for 2 years.
New Zealand on Friday supplied its nationwide provider a NZ$900 million ($510 million) lifeline, which Finance Minister Grant Robertson stated would assist it survive after the federal government banned all non-resident arrivals to the nation.
“That places us in an excellent place over the following a number of months,” Air New Zealand chief govt Greg Foran advised reporters of the mortgage, which it won’t draw down instantly. “We’d anticipate the airline business will look totally different on the finish of…