US Treasury starts distributing $15b in payroll aid to airlines

The US Treasury Department on Friday began distributing $15b in new payroll assistance to airlines, money allocated by Congress to help more than 32,000 aviation workers return to jobs through at least March 31. Large airlines receiving assistance must repay 30% of it to the government in 10-year, low-interest loans. They must also issue warrants to the government as part of the assistance and must agree to extend restrictions on executive compensation and a ban on paying dividends and share repurchases through March 2022. The Treasury said Friday it was initially awarding more than $12b in payroll support for major passenger air carriers and had released $6.1b on Friday. Treasury and airline officials said the government plans to release the remaining payroll assistance by the end of March. Delta said it expects to receive $2.9b in total aid this round, with $830m in the form of an unsecured loan. The airline said it received the first installment of $1.4b on Friday. Southwest said it expected to receive $1.73b in total and received $863.7m on Friday.<br/>