20 APRIL 2020

Index


© 2022 Business Travel News Ltd.

Article from BTNews 20 APRIL 2020

American airlines get cash

Ten US airlines have agreed to the US Treasury Department's bailout terms, including loans which must be repaid.

They are Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, SkyWest Airlines, Southwest Airlines and United Airlines according to a statement from treasury secretary Steven Mnuchin.

According to the government agency, major carriers will receive 70% of the funds for payroll in cash assistance that will not need to be paid back, while smaller carriers receiving $100m or less will not need to repay any funds.

American Airlines quickly announced it agreed a $5.8bn package, which includes a $1.7bn loan to be repaid.  It said it may also apply for a further loan of $4.75bn.

Southwest Airlines will receive $2.3bn in payroll support and a low-interest loan of nearly $1bn.

"We applaud the quick action by the US department of treasury to try to keep businesses open and people on the job," Southwest chairman and CEO Gary Kelly said.

The arrangement comes after strong reluctance by the carriers to accept the deal but the take it or leave stance by Mnuchin prevailed.  It also includes the handing over of warrants for part of the loan amounts which potentially gives the Government a minority share of airlines' stock.

https://home.treasury.gov/news/press-releases/sm973

Index/Home page
 

OUR READERS' FINEST WORDS (All times and dates are GMT)

All comments are filtered to exclude any excesses but the Editor does not have to agree with what is being said. 100 words maximum


www.btnews.co.uk