MAJOR AIRLINES LINE UP TO SPLIT $25 BILLION IN PAYROLL AID
The Treasury Department said this week that the
nation’s major airlines have tentatively agreed to
terms for $25 billion in federal aid to pay workers
and keep them employed through September.
The assistance will include a mix of cash and
loans, with the government getting warrants
that can be converted into small ownership
stakes in the leading airlines.
The airlines did not want to give up equity,
but Treasury demanded compensation for
taxpayers. The airlines have little leverage —
their business has collapsed as the COVID-19
pandemic reduces air travel to a trickle and they
face mass layoffs without the federal aid.
The nation’s six biggest airlines — Delta,
American, United, Southwest, Alaska and JetBlue
— along with four smaller carriers have reached
agreements in principle, and the Treasury
Department said talks were continuing with others.