The Turkish Wealth Fund is in talks to provide emergency financing to Turkish Airlines, one of the companies hardest hit in the country by the coronavirus pandemic.
According to Reuters, sources said that the company, which flies to destinations around the world more than any other airline, may receive capital or financing support, despite Nothing has been finalized yet.
It is unclear how much funding the Turkish wealth fund may provide for what a source described as a financial rescue. The Turkish wealth fund declined to comment.
In a statement to the stock exchange, Turkish Airlines said that the company had not received any information related to talks about allocating liquidity or financing support to the company.
The movement restriction measures in the wake of 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 financial bailout in June.
Turkish Airlines incurred losses of 2.33 billion pounds (287 million dollars) in the second quarter, when the scope of the general isolation measures expanded inside the country and abroad. It agreed with a union to cut wages between 30 and 50 percent until the end of 2021, but it avoided laying off employees.
one of the sources said, it is very clear that Turkish Airlines needs a rescue program. It could be capital support or financing support.
The source added that the Turkish Wealth Fund has conducted a large study of Turkish companies that are experiencing difficulties in the transport and tourism sectors, indicating that other bailouts may be imminent. / p>
The fund owns 49.12 percent of Turkish Airlines, which have a market capital of 14.6 billion pounds (1.9 billion dollars). Its shares have fallen 31 percent since borders were temporarily closed and international flights halted after February. Shares rose 2.5 percent after the financing news on Friday.
