Airlines and Treasury Department reach agreement on coronavirus aid

[Right_in_Virginia]

Airlines and Treasury Department reach agreement on coronavirus aid
The Hill, Apr 14, 2020

Major U.S. airlines have reached an agreement with the Treasury Department to accept billions of dollars in coronavirus stimulus funds, the department announced Tuesday.

Treasury Secretary Steven Mnuchin said in a statement that he and the department “welcome the news” that 10 airlines have agreed to participate in the program. The airlines applied for parts of $25 billion in payroll grants.

The initiative was created through the third coronavirus stimulus bill and requires the airlines to agree not to furlough or cut the pay rates of employees through Sept. 30.

“This is an important CARES Act program that will support American workers and help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers,” he said in the statement.

Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines and Southwest Airlines will all take part in the program, Mnuchin said.

The secretary added that other airlines may join the program, and the department is reviewing applications for smaller passenger air carriers “as quickly as possible.”


More:  https://thehill.com/policy/transportation/aviation/492809-airlines-and-treasury-department-reach-agreement-on

[Right_in_Virginia]

Airlines, Treasury reach deal on $25B coronavirus relief package
Fox Business, Apr 14, 2020

The U.S. Treasury Department and the major U.S. airlines have reached a deal on the $25 billion coronavirus relief package.

U.S. Treasury Secretary Steven T. Mnuchin issued the following statement on the Payroll Support Program for passenger air carriers:

“We welcome the news that a number of major airlines intend to participate in the Payroll Support Program. This is an important CARES Act program that will support American workers and help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers.

“Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines, and Southwest Airlines have told us that they plan to participate in the Payroll Support Program. Conversations continue with other airlines regarding their potential participation. Treasury is also working to review and approve applications for smaller passenger air carriers as quickly as possible and will provide further guidance for cargo carriers and contractors very soon. We look forward to working with the airlines to finalize the necessary agreements and disburse funds as quickly as possible.”

American Airlines released the following details on its $5.8 billion assistance as part of the package.

"The funds, which are targeted to support team member salaries and benefits, will come in two forms: a direct grant of $4.1 billion, and a low-interest rate loan of $1.7 billion. In addition to the $5.8 billion, American expects to separately apply for a loan from the U.S. Treasury of approximately $4.75 billion," American said in a press release.

“The Payroll Support Program recognizes the extraordinary dedication of our entire team, and importantly, sustains the critical air service being provided by our frontline team members,” said American CEO Doug Parker.

Specifics from the other airlines, including Delta, United, Southwest and JetBlue, are expected.


https://www.foxbusiness.com/money/airlines-treasury-reach-deal-on-25-billion-relief-package

[Right_in_Virginia]

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