Bailout interest rate for US airlines is as low as 1%
Almost a week after America’s largest airlines reached a bailout deal with the US Treasury, further details have emerged of the low interest rates the carriers will pay for taxpayer funding aimed at seeing them through the coronavirus pandemic. United Airlines said Monday it would pay a rate of 1% in interest on US$1.5b of funding for the next 5 years, after which the terms will reset to a rate tied to market interest rates. United said the terms for its loans matched what the govt had offered to other carriers receiving funds as part of a $50b aid package. The Treasury has also agreed to give large grants to airlines to help cover payroll costs. The loan portions of the bailout have to be repaid within 10 years and the Treasury will also receive warrants to buy shares in return for the funds. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-04-21/star/bailout-interest-rate-for-us-airlines-is-as-low-as-1
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Bailout interest rate for US airlines is as low as 1%
Almost a week after America’s largest airlines reached a bailout deal with the US Treasury, further details have emerged of the low interest rates the carriers will pay for taxpayer funding aimed at seeing them through the coronavirus pandemic. United Airlines said Monday it would pay a rate of 1% in interest on US$1.5b of funding for the next 5 years, after which the terms will reset to a rate tied to market interest rates. United said the terms for its loans matched what the govt had offered to other carriers receiving funds as part of a $50b aid package. The Treasury has also agreed to give large grants to airlines to help cover payroll costs. The loan portions of the bailout have to be repaid within 10 years and the Treasury will also receive warrants to buy shares in return for the funds. <br/>
