Name: U.S. airlines receive extra $9.5 billion in payroll support: U.S. Treasury
Brand: reuters.com
SKU: reuters-com-1008
Availability: OnlineOnly

critic

U.S. airlines receive extra $9.5 billion in payroll support: U.S. Treasury

preview

By , WASHINGTON (Reuters) - The U.S. Treasury Department said on Saturday it has released $9.5 billion in additional funds from the Payroll Support Program to U.S. air carriers, bringing to $12.4 billion the total provided to the airline sector hit hard by the coronavirus pandemic.In total, the government has disbursed grant funds to 10 major airlines and 83 smaller carriers.Congress approved $25 billion in grants for payroll assistance for passenger airlines. Treasury required major airlines receiving more than $100 million in assistance to repay 30% in low-interest loans over 10 years and issue warrants equal to 10% of the loan amount.Airlines must not cut pay or jobs through Sept. 30 as a condition of the grants and are barred from buying back stock or paying dividends and face restrictions on executive compensation.“There is still much about the future and recovery that remains uncertain, and there is a very real possibility that we could be a smaller airline by the end of the year,” he wrote in a email seen by Reuters.Treasury is awarding major carriers 50% of the grant funds initially and then releasing the remainder through July.Treasury said additional money will continue to be provided to approved applicants “on a rolling basis.”The department is still reviewing how to award $4 billion in grants to cargo carriers and $3 billion to airport contractors such as caterers.Cargo carriers that receive $50 million or less of payroll support and contractors that receive $37.5 million or less “will not be required to provide financial instruments as appropriate compensation” for support, the department said.The Treasury Department also published on Saturday the application form for companies deemed critical to maintaining national security seeking loans from a $17 billion fund.Airlines may still need more money as U.S. air travel demand has fallen by 95% and shows no sign of improving.On Friday, President Donald Trump said the U.S. government could pre-buy airplane tickets at a steep discount of 50% or more for travel for the next four or five years. “You infuse them with some cash. And in the meantime, we’re flying the people of our country for ... a fraction of the cost,” he said.Airlines for America, a trade group representing major U.S. airlines, declined to comment.Reporting by Jonathan Landay and David Shepardson; Editing by Chizu Nomiyama, Marguerita Choy and Daniel WallisOur Standards:

By , WASHINGTON (Reuters) - The U.S. Treasury Department said on Saturday it has released $9.5 billion in additional funds from the Payroll Support Program to U.S. air carriers, bringing to $12.4 billion the total provided to the airline sector hit hard by the coronavirus pandemic.In total, the government has disbursed grant funds to 10 major airlines and 83 smaller carriers.Congress approved $25 billion in grants for payroll assistance for passenger airlines. Treasury required major airlines receiving more than $100 million in assistance to repay 30% in low-interest loans over 10 years and...

public

@Reuters reporter in DC covering transportation, aviation, autos + (anything that moves) @fcc tech Pvs @DetroitNews Michigan native. Father of three, husband

David Shepardson

Jonathan Landay

Top and breaking news, pictures and videos from Reuters. For more breaking business news, follow @ReutersBiz.

reuters.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

U.S. airlines receive extra $9.5 billion in payroll support: U.S. Treasury

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS