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The Turkish company flies more to destinations around the world than any other airline (Getty)
“Reuters” quoted 4 sources as saying that the Turkish wealth fund is in talks to provide emergency financing to Turkish Airlines, one of the companies most affected in the country by the Corona virus pandemic that has stopped all flights of the famous airline.
Sources familiar with the matter added that the airline, which flies more to destinations around the world than any other airline, may receive capital support or financing, although nothing has yet been finalized.
It was unclear how much the Turkish wealth fund would fund for what one source described as a bailout. Turkey’s wealth fund declined to comment, while Turkish Airlines did not immediately comment.
Movement restriction measures following the coronavirus pandemic have caused significant losses, layoffs and closures at airlines around the world. German Lufthansa, one of the world’s largest airlines, agreed to a $ 10 billion government bailout in June.
Turkish Airlines incurred losses of 2.33 billion lira ($ 287 million) in the second quarter, as the scope of general isolation measures was expanded within the country and abroad. She agreed with a union to cut wages by 30 to 50 percent through the end of 2021, but avoided laying off employees. (One dollar = 7.7695 pounds).
One of the sources said: “It is very clear that Turkish Airlines needs a rescue program. It can be capital support or financial support.”
The source added that the Turkish Wealth Fund conducted an extensive study of Turkish companies that are experiencing difficulties in the transport and tourism sectors, indicating that more rescue operations may be imminent.
The fund owns 49.12 percent of Turkish Airlines, which has a market capital of 14.6 billion lira ($ 1.9 billion). Its shares have fallen 31% since the borders were temporarily closed and international flights stopped after February. The shares were up 2.5 percent on Friday’s financial news.
(Reuters)
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