Donald Trump has suggested that the US federal government should, “buy tickets at a very large discount, maybe 50 percent off or maybe more, and you buy into four or five years’ worth of tickets and you infuse them with some cash.”

“And in the meantime, we’re flying the people of our country for a fraction of the cost than it would be when the airlines get back. They will get back… but as an additional incentive where we buy tickets in advance at a very big discount, which I’ve liked really from the beginning. And we’re not up there.

“Look, the fact is that the airlines are going to be fine the way it is now, but I like that as an additional help for the airlines. I like it both ways. I like it for us too. We’re the largest user of the airlines. So, you buy tickets. I don’t know. This sounds good, right, if we get a good discount?”

There are a couple of issues at play here. First, yes, it could be a good idea for the government. But, if, “airlines are going to be fine the way it is now” why would they sell bulk seats up to four or five years in advance at massive discounts? And, let’s be realistic, government employees are still going to fly, so why jeopardize future revenue for short term cash if you don’t really need it?

Second, if travel restrictions continue or are severely curtailed for the rest of the year and into the next – will all the airlines still be around or could the Government end up with pre-paid tickets on a bankrupt carrier.

Third, the US government has already earmarked US $50 billion for the airline industry. $25 billion is composed of approximately 70 percent in grants and 30 percent in loans with a 1 interest percent rate. This amount must be used for employee salaries and benefits to keep staff on the payroll.

An additional $25 billion comprises entirely loans, with an interest rate yet to be determined. The Treasury will also receive stock warrants worth 10 percent of the loan amount that exceeds $100 million. The Treasury began making payments to airlines last week, and confirmed it has already distributed funds to 11 major airlines and 82 smaller air carriers, and will continue to make payments on a rolling basis.

The question then is, why would the airlines be amenable to the government bulk buying travel at massive discounts when they are already receiving aid without that requirement?