Five US Airlines Sign Up for Coronavirus Relief Aid, Others Could Follow Suit - Treasury
Five US airlines have signed up for relief from the federal government to address the effects of the measures imposed to fight the novel coronavirus, and other airlines could do the same, the Treasury Department said in a statement on Thursday
WASHINGTON (Pakistan Point News / Sputnik - 02nd July, 2020) Five US airlines have signed up for relief from the Federal government to address the effects of the measures imposed to fight the novel coronavirus, and other airlines could do the same, the Treasury Department said in a statement on Thursday.
"American Airlines, Frontier Airlines, Hawaiian Airlines, Sky West Airlines and Spirit Airlines have signed letters of intent setting out the terms on which Treasury would extend loans under Division A, Title IV, Subtitle A of the Coronavirus Aid, Relief, and Economic Security (CARES) Act," the statement said.
Treasury Secretary Steve Mnuchin said he was pleased that the five airlines had decided to seek much-needed financial assistance while ensuring appropriate taxpayer compensation.
"Conversations with other airlines continue, and we look forward to finalizing agreements as soon as possible," Mnuchin said.
Title IV of the CARES Act authorizes the Treasury Department to make loans to eligible businesses related to losses incurred as a result of the novel coronavirus pandemic, the statement said.
Borrowers were, however, required to provide warrants, equity interests, or senior debt instruments as appropriate taxpayer compensation, the statement also said.
Participating borrowers must also commit to certain requirements under the CARES Act to maintain employment levels and limit employee compensation, dividends, and share repurchases, the statement added.