US: Democrats urge US Treasury not to delay $25b in grants to airlines
US House Speaker Nancy Pelosi urged the US Treasury on Wednesday not to hold up $25b in cash grants approved by Congress last week to airlines for payroll costs. "We do want them to honour what our conversation was, which is this is just a stopping-off point for the check. It goes to the airline and directly to the employee," Pelosi said. "We just don't want to hold it up." Major aviation unions and some airline officials are concerned the US Treasury will demand too much in warrants or equity as a condition of the grants for airline payroll costs. Treasury on Monday told airlines to propose financial instruments as part of their applications for grants that they want to see by Friday. The legislation requires equity, warrants or other financial compensation for taxpayers for the $25b in loans, but gives Treasury Secretary Steven Mnuchin discretion over whether to seek compensation for the grants. A group of unions representing more than 100,000 flight attendants urged Mnuchin in a letter on Wednesday not to exercise his authority to demand warrants or equity as a condition for the $25b in grants. "If the airlines were required to pay back the grants in full with an equity position of $25 billion, that would give the government the equivalent of a 40% stake in airlines in exchange for keeping workers on the payroll for six months," the letter said, adding it "effectively renders the payroll grants a poison pill that will cost us our jobs."<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-04-02/general/us-democrats-urge-us-treasury-not-to-delay-25b-in-grants-to-airlines
https://portal.staralliance.com/cms/logo.png
US: Democrats urge US Treasury not to delay $25b in grants to airlines
US House Speaker Nancy Pelosi urged the US Treasury on Wednesday not to hold up $25b in cash grants approved by Congress last week to airlines for payroll costs. "We do want them to honour what our conversation was, which is this is just a stopping-off point for the check. It goes to the airline and directly to the employee," Pelosi said. "We just don't want to hold it up." Major aviation unions and some airline officials are concerned the US Treasury will demand too much in warrants or equity as a condition of the grants for airline payroll costs. Treasury on Monday told airlines to propose financial instruments as part of their applications for grants that they want to see by Friday. The legislation requires equity, warrants or other financial compensation for taxpayers for the $25b in loans, but gives Treasury Secretary Steven Mnuchin discretion over whether to seek compensation for the grants. A group of unions representing more than 100,000 flight attendants urged Mnuchin in a letter on Wednesday not to exercise his authority to demand warrants or equity as a condition for the $25b in grants. "If the airlines were required to pay back the grants in full with an equity position of $25 billion, that would give the government the equivalent of a 40% stake in airlines in exchange for keeping workers on the payroll for six months," the letter said, adding it "effectively renders the payroll grants a poison pill that will cost us our jobs."<br/>
