US: Mnuchin asks airlines to propose financial stake in aid bid

Airlines will be required to propose up-front how the federal government could retain financial stakes in their companies in exchange for a share of $61b in coronavirus aid designated for the industry, according to guidelines released by the Treasury Department. The assistance is aimed at helping US carriers stay afloat and continue to pay workers, as companies struggle with a near 90% drop in passenger traffic because of the widening pandemic. Instructions for applying for aid were posted by the Treasury late Monday, just days after President Donald Trump signed the $2.2t stimulus package into law. The legislation negotiated by Treasury Secretary Steven Mnuchin with top US lawmakers includes as much as $32b in payments for airlines to keep employees on their payrolls. Under the guidelines, recipients must refrain from making any furloughs or layoffs before Sept. 30 of this year. The measure also offers $29b in loans to carriers to help fund their operations. The guidelines say applicants should submit details of existing debt and credit lines with outstanding balances, scheduled debt service for three years and employment levels. “Each borrower will be required to identify the financial instruments it proposes to issue to the Treasury Department,” the agency says in preliminary guidelines.<br/>