US: Treasury Department selects Wall Street banks to advise on airline aid

The Treasury Department plans to hire three Wall Street banks for advice on doling out tens of billions of dollars in aid to the airline industry, which is hemorrhaging cash as a result of the coronavirus pandemic. The department is expected to tap PJT Partners, Moelis & Co. and Perella Weinberg Partners for help with the airline portion of the $2t stimulus bill, according to people familiar with the matter. Each bank is likely to advise on aid to one of three subsectors: commercial airlines, cargo carriers and firms critical to national security, such as Boeing, the people said. The assignments could be disclosed this week, though the plans could change or be delayed as they are still being finalized. The stimulus bill includes $50b for passenger airlines, half of it in outright grants to be used to cover payroll for six months and the rest in loans and guarantees. Lawmakers allocated another $8b to air-cargo carriers, $3b to airline contractors such as catering companies and $17b to companies deemed essential to national security. The law also authorized the Treasury Department to take a stake in airlines. <br/>