U.S. Airlines Close to Accepting Government Payroll Aid Package
Some giant U.S. passenger airlines are close to accepting the terms of a $25 billion offer for government coronavirus payroll aid, with bulletins possible as early as Tuesday, sources briefed on the matter said.
Airline business officers expect all giant airlines to accept the subsidies in the coming days, and U.S. Treasury Secretary Steven Mnuchin stated Monday he expects decisions to come out soon.
Brent McIntosh, the Treasury undersecretary for global affairs, said Monday the agency was not planning to change the terms mentioned Friday, which require 30% of the funds earmarked to each airline to be repaid.
As per the wages and benefits in the second and third quarters of the last year, American Airlines Group and United Airways Holdings were each eligible for nearly $6 billion in subsidies, Delta Air Lines about $5.6 billion, and Southwest Airlines some $4 billion.
Nevertheless, one airline official said giant carriers might receive just about 75% of the payroll assistance sought because the overall amount of funds sought overpassed $25 billion.
Earlier, officials said all the giant U.S. airlines had been more and more resigned to the terms.
U.S. passenger airlines, suffering an unprecedented slowdown in demand because of the coronavirus, are also eligible for a different $25 billion loan package deal under the CARES Act.