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Mnuchin flexes muscles on airline coronavirus aid — a taste of what other companies may face
CNBC ^ | 13 Apr 20 | Leslie Josephs and Lauren Hirsch

Posted on 04/13/2020 5:23:51 PM PDT by SkyPilot

GP: Steven Mnuchin, 200402

The Treasury Department is sending a message to large companies weighing government aid to weather the coronavirus pandemic: No free rides.

Negotiations between airlines and the department over payroll grants have dragged on longer than expected after the Treasury Department requested more information and proposed additional conditions for the aid, a hint of what companies could face as they seek government assistance to blunt the impact of the virus and harsh measures like shelter-in-place orders aimed at slowing its spread.

U.S. passenger airline executives cheered when Congress passed a $2 trillion coronavirus relief package that included $25 billion in airline payroll grants on the condition that they they don’t furlough or cut the pay rates of their employees through Sept. 30, as carriers face the deepest crisis in their history.

But Steven Mnuchin’s Treasury Department has asked the country’s largest airlines to pay back 30% of the grants for which they applied, essentially turning them into low-interest loans, according to people familiar with the matter. The grants would also come with equity warrants for 10% of the value of the loan. Talks continued over the weekend and airlines are closing in on deals, which could be announced early this week, according people familiar with the discussions.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: airlines; bailout; bidencovidfor2020; coronavirus; mnuchin
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1 posted on 04/13/2020 5:23:51 PM PDT by SkyPilot
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To: SkyDancer; taildragger

Ping


2 posted on 04/13/2020 5:24:55 PM PDT by SkyPilot
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To: SkyPilot

keeping one eye on boeing...


3 posted on 04/13/2020 5:26:12 PM PDT by SteveH
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To: SkyPilot

Why didn’t anyone ask the very simple question when will physical checks be mailed?

...which he should have stated anyway without being asked.


4 posted on 04/13/2020 5:28:28 PM PDT by bramps (It's the Islam, stupid!)
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To: SkyPilot

If corporations haven’t accumulated savings necessary to ride out the crisis, it is only fair for them to sell their equity to the federal government.


5 posted on 04/13/2020 5:30:22 PM PDT by MinorityRepublican
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To: bramps

You can enter your bank info on a special IRS site but i’m guessing you probably know that and don’t want to.

Just trying to help FRiend


6 posted on 04/13/2020 5:30:36 PM PDT by dp0622 (Radicals, racists dont point finges aat me I'm a small town white boy Just tryin to make ends meet)
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To: SteveH
American Airlines Retiring 737s, A330s, And More


7 posted on 04/13/2020 5:31:04 PM PDT by SkyPilot
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To: SkyPilot

Yeah! The only free-rides are for banks and financial companies!! Everyone knows that.


8 posted on 04/13/2020 5:31:34 PM PDT by PGR88
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To: MinorityRepublican

I say if they want to be bailed out, all executives and board members must resign.


9 posted on 04/13/2020 5:31:37 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: SkyPilot

basically what the Government is doing is taking equity stakes in airlines if they want a bailout...


10 posted on 04/13/2020 5:31:53 PM PDT by srmanuel
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To: MinorityRepublican
If corporations haven’t accumulated savings necessary to ride out the crisis, it is only fair for them to sell their equity to the federal government.

They blew it all on stock buybacks.

11 posted on 04/13/2020 5:31:59 PM PDT by SkyPilot
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To: SkyPilot

great, i could use a rebuilt jet engine for my jeep, lol


12 posted on 04/13/2020 5:34:31 PM PDT by SteveH
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To: dfwgator

The airlines have had travel cut down by 96%. How is that their fault? And what happens if they go under?


13 posted on 04/13/2020 5:35:06 PM PDT by Mr Rogers (Professing themselves to be wise, they became fools)
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To: SkyPilot
This is a really, really bad decision - economically and politically.

Trump shut down the American economy.

Now, Trump is telling the airline industry, their employees, and American voters that he - Trump - has no responsibility for what happens next.

You OWN this issue, Mr. President.

Re-open the country.

Today!

14 posted on 04/13/2020 5:39:32 PM PDT by zeestephen
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To: dfwgator
I say if they want to be bailed out, all executives and board members must resign.

What did they do to cause this?

15 posted on 04/13/2020 5:42:30 PM PDT by Balding_Eagle ( The Great Wall of Trump ---- 100% sealing of the border. Coming soon.)
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To: Mr Rogers
And what happens if they go under?

Somebody buys their liquidated fleets and starts a new airline.

16 posted on 04/13/2020 5:42:41 PM PDT by IndispensableDestiny
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To: dp0622

You can enter your bank info on a special IRS site

:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

Thank you. I heard him say that before but not tonite. Makes me wonder if that option is actually going to come to fruition. You’re right that I don’t plan on using it but I also don’t want to hear that they have no definitive date for checks to go out (which means I should put it in my will).


17 posted on 04/13/2020 5:46:11 PM PDT by bramps (It's the Islam, stupid!)
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To: SkyPilot; All
I'll try to ask the right questions here, because I am not sure what the money is supposed to do for the airlines.

1. I realize that employees will retire, be furloughed, or be laid off or even terminated. Is the money supposed to be used to mitigate the severance of employees from service?

2. A lot of planes are going to be grounded. Will the money be used to keep those planes service worthy, with qualified mechanics employed to do so?

3. Will the money be used so that airlines don't have to down size corporate headquarters?

4. Will the money be used to keep salaries at high levels for airline executives?

Friends, I am not a hater of airlines and their employees. (I despise the TSA though). What will this money accomplish for an industry which will have bleak prospects for a long time to come back to prosperity and widespread use?

18 posted on 04/13/2020 5:46:20 PM PDT by Enterprise
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To: Mr Rogers

They may just decide to file bankruptcy.

If they’re getting the dud deal, here.


19 posted on 04/13/2020 5:47:41 PM PDT by Jane Long (Praise God, from whom ALL blessings flow.)
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To: SkyPilot

Okay, this hits home. I own a small business (at least for now). I had no choice in this boondoggle where the government tells me and everybody else to stay home. If they are going to take our business and livelihood away with these hair-brain schemes, then by golly, they should pay for this disaster!

The airlines are similar, but they have access to funds that most small businesses do not. Maybe they get a little different treatment. But, Mnuchin is not delivering for any of us. Hello DJT!

The CARES Act has been all smoke and mirrors for the small business person!


20 posted on 04/13/2020 5:54:07 PM PDT by icclearly
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