Trump suggests government buys tickets in bulk to aid airlines
President Trump says the government is mulling another option to inject some more cash into struggling airlines.
He suggested that the US government should buy airline travel in bulk with a purchase of four or five years’ worth of plane tickets to boost airlines’ threadbare finances.
As one of the biggest customers for air travel, it’s a win-win Trump says.
Airlines get the cash upfront when they need it most and the taxpayer gets a better deal with the government negotiating big discounts.
"One of the ways we can help the airlines is buying tickets at a very large discount, maybe 50% off or maybe more, and you buy into four or five years’ worth of tickets, and you infuse them with some cash," Trump said.
"And in the meantime, we’re flying the people of our country for a fraction of the cost it would be when the airlines get back."
It sounds like a good deal for the government but not a great one for airlines as business travel by air by government officials is not going to disappear if airlines baulk at the idea.
It would mean airlines losing out on a lot of high-yield future revenue for a short term gain.
It is not a new idea as large corporations have similar contract agreements albeit much less expansive than Trump’s proposal.
The Hong Kong government recently said it would buy 500,000 tickets direct from airlines to prop up their businesses.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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