British Airways could be bailed out by taxpayers in a desperate attempt to save the UK’s aviation industry, which has been brought to a near-standstill by the coronavirus pandemic.

Ministers are considering part-nationalising Britain’s flag carrier, as well as rivals such as Virgin Atlantic and easyJet, as the travel industry reels from restrictions on movement brought in by governments to curb the spread of Covid-19.

Transport officials in Whitehall are also understood to be considering slashing airport capacity. Sources said that Heathrow could go down to one runway — a suggestion the airport branded “fake news”. Most planes have already been grounded. A source said BA was burning through £200m a week. Its owner, IAG, is parking 75% of its planes.

An injection of equity