US Airlines To Receive $25bn Rescue Package

47
656

US Airlines To Receive $25bn Rescue Package

The US has agreed a roughly $25bn (£19.8bn) rescue package for 10 of the country’s biggest airlines as travel plunges due to the coronavirus.

American Airlines, United, Delta and Southwest are among the recipients.

The money is to be used for payroll and will be provided through a combination of low-cost loans and direct grants.

Congress had planned for the aid as part of its roughly $2tn emergency relief bill last month but airlines had been negotiating the deal.

Rescue package

Under terms outlined by the US Treasury Department last week, major airlines were expected to repay about 30% of the payroll funds they receive.

Congress had also included conditions when it crafted the emergency aid law, such as prohibitions against involuntary furloughs and bars on reducing worker pay and benefits until the end of September.

The terms also limit share repurchases until the end of September 2021 and executive pay until the end of March 2022.

US Treasury Secretary Steven Mnuchin on Tuesday said the airline deal would “support American workers and help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers”.

“We look forward to working with the airlines to finalise the necessary agreements and disburse funds as quickly as possible.”

Confirmation that the airlines would use the payroll bailout lifted industry shares in after-hours trading, sending American Airlines up more than 8% and United Airlines up more than 7%.

American Airlines boss Doug Parker said his company expects to receive more than $10bn in support, including$5.8bn in payroll funds, of which it expects about $4.1bn is set to be a grant. The firm will also apply for a government loan through a different programme.

“The support our government has entrusted to us carries immense responsibility and an obligation that American Airlines is privileged to undertake,” American chief executive Doug Parker said.

Other companies set to receive aid include Southwest which said it would receive a total of $3.2bn, including $2.3bn in payroll support.

Banner

Bailout concerns

Global airlines group IATA has forecast more than $300bn in losses related to the coronavirus and warned that some 25 million jobs are at risk.

In the US travel has dropped more than 95%, leading to widespread cancellations, fleet groundings and billions in losses.

WTA Tour Event Postponed Until August 2021

However, the industry had faced criticism for spending money in recent years to repurchase shares, instead of investing the money back into the company or it workers.

Politicians have also been worried that bailouts of private firms will lead to controversy as happened during the 2008 financial crisis.

The labour union that represents flight attendants, the Association of Flight Attendants-CWA International, said it believed Congress had intended airlines to receive all $25bn in payroll support in the form of grants but it nevertheless welcomed news that the industry and the White House had come to terms.

“We are closer than ever to almost a million airline workers knowing they will receive their pay cheque and keep their healthcare and other benefits, at least through September,” the group’s president, Sara Nelson, said. “This is an unprecedented accomplishment – a truly workers-first stimulus.”

At the beginning of April, 250 trades unions and environmental groups signed an open letter opposing unconditional bailouts of airlines.

US Airlines To Receive $25bn Rescue Package

47 COMMENTS

  1. Youre so awesome! I don’t intend Ive check out anything like this prior to. So good to discover someone with some initial thoughts on this subject. realy thank you for starting this up. this web site is something that is required on the internet, a person with a little originality. beneficial work for bringing something brand-new to the net!

  2. I have figured out some points through your site post. One other stuff I would like to say is that there are several games out there designed specially for toddler age children. They incorporate pattern identification, colors, family pets, and forms. These usually focus on familiarization as opposed to memorization. This makes children engaged without sensing like they are studying. Thanks

  3. Good post. I learn something much more difficult on various blogs day-to-day. It will always be stimulating to review material from other authors as well as practice a something from their store. I?d favor to make use of some with the web content on my blog whether you don?t mind. Natually I?ll offer you a web link on your internet blog. Many thanks for sharing.

  4. What i don’t realize is in reality how you’re no longer actually a lot more well-preferred than you may be right now. You’re very intelligent. You already know thus significantly in relation to this subject, produced me personally imagine it from numerous numerous angles. Its like women and men are not involved except it is something to do with Girl gaga! Your individual stuffs outstanding. At all times handle it up!

  5. There are certainly numerous details like that to take into consideration. That could be a nice point to carry up. I offer the ideas above as normal inspiration however clearly there are questions just like the one you convey up where a very powerful thing will probably be working in sincere good faith. I don?t know if greatest practices have emerged round issues like that, however I’m sure that your job is clearly identified as a good game. Both girls and boys really feel the influence of only a moment’s pleasure, for the rest of their lives.

  6. Normally I don’t learn post on blogs, but I would like to say that this write-up very forced me to check out and do it! Your writing style has been amazed me. Thanks, quite great post.

  7. Have you ever considered about adding a little bit more than just your articles? I mean, what you say is important and everything. But think of if you added some great photos or videos to give your posts more, “pop”! Your content is excellent but with pics and clips, this website could undeniably be one of the very best in its field. Terrific blog!

  8. Greetings from Florida! I’m bored at work so I decided to browse your website on my iphone during lunch break. I enjoy the knowledge you present here and can’t wait to take a look when I get home. I’m surprised at how fast your blog loaded on my phone .. I’m not even using WIFI, just 3G .. Anyways, great site!

  9. I’m extremely impressed with your writing skills as well as with the layout on your blog. Is this a paid theme or did you customize it yourself? Anyway keep up the excellent quality writing, it is rare to see a nice blog like this one nowadays..

  10. I do trust all of the ideas you have presented in your post. They are very convincing and can definitely work. Still, the posts are very brief for starters. May you please prolong them a little from subsequent time? Thanks for the post.

  11. Thanks for sharing your ideas. I’d also like to state that video games have been at any time evolving. Modern technology and improvements have helped create authentic and enjoyable games. All these entertainment video games were not actually sensible when the real concept was first being attempted. Just like other areas of technology, video games too have had to advance by means of many years. This itself is testimony on the fast development of video games.

  12. 71210 276122not every person would need a nose job but my girlfriend genuinely needs some rhinoplasty coz her nose is kind of crooked- 83890

  13. I must show my thanks to you for bailing me out of this type of issue. Just after searching throughout the internet and seeing advice that were not pleasant, I thought my entire life was gone. Existing minus the approaches to the problems you have solved by means of your good guide is a serious case, and ones which might have adversely affected my entire career if I hadn’t discovered your web blog. Your good training and kindness in playing with the whole lot was tremendous. I don’t know what I would have done if I hadn’t discovered such a stuff like this. I can also at this point look ahead to my future. Thanks for your time very much for this reliable and sensible help. I will not be reluctant to endorse your web blog to anyone who should get direction about this area.

  14. Youre so amazing! I do not mean Ive check out anything like this before. So wonderful to find someone with some initial thoughts on this subject. realy thanks for beginning this up. this internet site is something that is required on the web, somebody with a little originality. valuable task for bringing something new to the internet!

  15. Get help to stop drinking. Helping women quit drinking alcohol. Coach Mary Wagstaff. Feel better, mind, body and soul. Mindfulness based coaching and alcohol recovery. Yoga for recovery.

  16. Thank you for the sensible critique. Me & my neighbor were just preparing to do some research about this. We got a grab a book from our area library but I think I learned more from this post. I’m very glad to see such wonderful information being shared freely out there.

  17. One important thing is that if you find yourself searching for a student loan you may find that you’ll want a co-signer. There are many circumstances where this is correct because you should find that you do not use a past credit standing so the financial institution will require that you have someone cosign the credit for you. Interesting post.

  18. Good day very nice blog!! Guy .. Excellent .. Amazing .. I’ll bookmark your site and take the feeds also…I am happy to find a lot of useful information here in the put up, we’d like develop more techniques in this regard, thank you for sharing.

  19. Interesting article. It is very unfortunate that over the last 10 years, the travel industry has already been able to to handle terrorism, SARS, tsunamis, bird flu virus, swine flu, as well as the first ever real global downturn. Through everything the industry has proven to be effective, resilient plus dynamic, getting new methods to deal with adversity. There are always fresh challenges and the opportunity to which the field must yet again adapt and answer.

  20. Hey, I think your site might be having browser compatibility issues. When I look at your website in Opera, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, wonderful blog!

  21. Intimately, the post is actually the freshest on that laudable topic. I fit in with your conclusions and will certainly thirstily look forward to your approaching updates. Simply saying thanks can not simply be acceptable, for the excellent lucidity in your writing. I definitely will immediately grab your rss feed to stay informed of any updates. Solid work and also much success in your business enterprize!

  22. Interesting blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple adjustements would really make my blog shine. Please let me know where you got your theme. Bless you

  23. Hey, you used to write great, but the last several posts have been kinda boring… I miss your tremendous writings. Past several posts are just a little bit out of track! come on!

  24. Thanks for the auspicious writeup. It in reality used to be a amusement account it. Glance advanced to far brought agreeable from you! However, how could we communicate?

  25. The following time I check out a blog, I really hope that it doesn’t disappoint me as high as this set. I suggest, I understand it was my selection to read, yet I in fact thought youd have something interesting to say. All I hear is a lot of whining regarding something that you might repair if you werent too busy trying to find focus.

  26. One other issue issue is that video games can be serious anyway with the major focus on knowing things rather than amusement. Although, it has an entertainment aspect to keep children engaged, each one game is usually designed to improve a specific group of skills or program, such as math or scientific discipline. Thanks for your write-up.

  27. I have to show my thanks to this writer just for bailing me out of this particular situation. Just after looking out through the the web and obtaining strategies that were not helpful, I was thinking my life was gone. Existing without the approaches to the difficulties you’ve sorted out as a result of your good review is a critical case, as well as the ones which may have adversely damaged my career if I hadn’t come across your web page. Your primary ability and kindness in playing with the whole lot was important. I’m not sure what I would have done if I hadn’t come upon such a point like this. I can also at this moment look ahead to my future. Thanks so much for your reliable and amazing guide. I will not think twice to endorse your web sites to anybody who wants and needs direction on this area.

LEAVE A REPLY

Please enter your comment!
Please enter your name here