U.S. Treasury Sends Airlines Coronavirus-Related Financial Aid
April 20 2020 - 10:08PM
Dow Jones News
By Kate Davidson
WASHINGTON -- The U.S. Treasury Department sent $2.9 billion in
aid to airlines Monday, the first payments the government has made
as part of a grant and loan program to help the industry weather
disruptions caused by the coronavirus pandemic.
The Treasury said it sent the payments to two large airlines and
54 smaller passenger carriers, and would continue to disburse funds
on a rolling basis. It didn't identify the airlines.
It also said that it had completed agreements with six large
companies: American Airlines Group Inc., Delta Air Lines Inc.,
United Airlines Holdings Inc., Southwest Airlines Co., Spirit
Airlines Inc. and Allegiant Air.
Alaska Airlines, Frontier Airlines, Hawaiian Airlines, JetBlue
Airways Corp., and SkyWest Airlines have indicated that they plan
to participate in the grant and loan program, which will allocate
$25 billion for passenger air carriers to help them continue paying
workers' salaries and benefits through the summer.
Together, the 11 large airlines represent 95% of U.S. airline
capacity, the Treasury said Monday.
Air travel has plunged as governments around the world imposed
travel restrictions to help contain the pandemic.
"The Payroll Support Program is critical to supporting American
workers and preserving our airline industry, which is a vital part
of the U.S. economy," Secretary Steven Mnuchin said. "We continue
to work quickly to deliver this needed relief."
The $25 billion for airlines is part of the $2.2 trillion
economic relief package Congress passed in March.
Southwest said Monday that it had completed its agreement to
receive $3.2 billion under the program, and would receive an
immediate payment of $1.6 billion with the rest paid in
installments in May, June and July.
"This assistance will support valuable jobs which exist to serve
the flying public and the infrastructure, supply chain, and
recovery of our national economy," Southwest Chief Executive Gary
Kelly said in a statement.
Write to Kate Davidson at kate.davidson@wsj.com
(END) Dow Jones Newswires
April 20, 2020 21:53 ET (01:53 GMT)
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