US: Airlines hesitate over coronavirus stimulus package’s aid terms
The US$2t stimulus package passed last month included everything airlines requested, and some restrictions they find difficult to swallow. The aid offer includes $50b, half in direct payroll assistance and half in loans and loan guarantees. But the $25b to pay salaries and benefits this summer comes with more strings than the largest airlines were hoping for. Treasury secretary Steven Mnuchin told CEs of the largest airlines Friday that 30% of that money is to be repaid and that they will need to offer stock warrants on about 10% of the loan amount, which the govt could convert to shares later. That surprised some airline industry officials who had believed the money would be in the form of grants. Airline executives spent the weekend discussing concerns with an industry trade group and seeking to negotiate adjustments. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-04-13/general/us-airlines-hesitate-over-coronavirus-stimulus-package2019s-aid-terms
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US: Airlines hesitate over coronavirus stimulus package’s aid terms
The US$2t stimulus package passed last month included everything airlines requested, and some restrictions they find difficult to swallow. The aid offer includes $50b, half in direct payroll assistance and half in loans and loan guarantees. But the $25b to pay salaries and benefits this summer comes with more strings than the largest airlines were hoping for. Treasury secretary Steven Mnuchin told CEs of the largest airlines Friday that 30% of that money is to be repaid and that they will need to offer stock warrants on about 10% of the loan amount, which the govt could convert to shares later. That surprised some airline industry officials who had believed the money would be in the form of grants. Airline executives spent the weekend discussing concerns with an industry trade group and seeking to negotiate adjustments. <br/>
