Posted on 04/14/2020 2:48:58 PM PDT by FewsOrange
The Trump administration has reached an agreement in principle with major airline companies over the terms of a $25 billion bailout to prop up an industry that has been hobbled by the coronavirus pandemic.
The Treasury Department said that Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines and Southwest Airlines will be participating in the payroll support program, which was created as part of the economic stabilization package that Congress passed last month.
“We welcome the news that a number of major airlines intend to participate in the Payroll Support Program,” Treasury Secretary Steven Mnuchin said ... American Airlines said it would receive $5.8 billion as part of the deal, with more than $4 billion in grants and the remaining $1.7 billion as a low-interest loan. The funds are intended to be used to pay employees, and the airlines that take them are prohibited from major staffing or pay cuts through September.
American Airlines plans to separately apply for a nearly $4.8 billion loan from the department as well.
...
Southwest Airlines said it expected to receive $3.2 billion, about $1 billion of which would come in the form of a low-interest loan with a 10-year term. That loan is expected to include about 2.6 million warrants issued to the agency.
The administration had spent weeks haggling with the airlines over the terms of the bailout, with Mr. Mnuchin pushing the airlines to agree to repay 30 percent of the money over a period of five years. The Treasury Department also has been seeking warrants to purchase stock in the companies that take money. Airlines have complained that Treasury was effectively turning the grants into loans by requiring repayment. ...
(Excerpt) Read more at nytimes.com ...
It is a loan. For now.
Why not? For the good of the country.
Collect the signed resignation from every CEO and board member. Leave the date blank.
Wouldn’t have to bail out everyone if you didn’t shut the country down based on bogus numbers. Experts said 2 million and it is 25,000.Only off by 100 times.
Fedzilla needs to start some kind of business interruption insurance thing akin to federally subsidized flood insurance.
If biz, small to large, want in on future bailouts, they’d bloody well better buy a policy and have some skin in the game.
Hopefully with a stipulation that bans future stock buybacks.
Agreed.
Any company that is “Too Big To Fail” in essence becomes a Government company because the taxpayers would be ultimately on the hook.
I have REALLY big kite.
Can I get a half a Mill?
Right. This multi billion dollar ‘loan’ is never getting paid back. Maybe pennies on the dollar at best.
Airlines have complained that Treasury was effectively turning the grants into loans by requiring repayment. ...
...
Good. There should either be repayment or equity.
And offshore outsourcing business functions.
That’s too much money. Divert some of it to small businesses.
I’ll take a few thousand for making paper airplanes
It’s only money. Plenty from where that was printed from.
President Trump speaking right now on FOX (Youtube)
Part of that agreement should be a requirement for the airlines to stop nickel and diming the passengers for anything and everything.
It’s only fair, since the passengers...aka TAXPAYERS are amongst those bailing out the airlines!
Great
Now I expect refunds for my flights they cancelled
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