U.S. airlines to accept billions in federal loans Description video: The largest U.S. air carriers have struck deals for billions of dollars in federal loans.\n\nSubscribe: http://smarturl.it/reuterssubscribe\n\nReuters brings you the latest business, finance and breaking news video from around the globe. […]
U.S. airlines to accept billions in federal loans
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All Major US Airlines Apply for Federal Loans
Major American airlines have signed agreements with the US Treasury Department on the terms of the government loans they need to help weather the new wave of coronavirus.
Delta Air Lines, United Airlines, JetBlue Airways, Southwest Airlines and Alaska Airlines have signed letters of intent to receive loans from the US government. It was announced last week that American Airlines, Frontier, Hawaiian, SkyWest and Spirit have also entered into aid agreements. The CARES (Coronavirus Aid, Relief and Economic Security) Act, a $ 2.2 trillion coronavirus relief package passed in March, provides $ 25 billion in funding for U.S. passenger airlines.
«We look forward to working with airlines to negotiate agreements and enable airlines to access these credits if they so desire.», – the finance minister said in a statement Steven Mnuchin.
Airlines facing the worst crisis in the industry as the coronavirus pandemic has nearly zeroed demand for air travel must decide by September 30 whether to take out a loan and whether they can provide vacations or will be forced to liquidate jobs starting October 1.
Travel has increased in some areas over the past two months as the economy has partially opened up and travel restrictions have eased, although the recent spike in COVID-19 cases in some U.S. states has led to new restrictions and has begun to affect flight bookings again..
On Monday «United Airlines» told its employees that it is preparing to receive notifications of potential vacations this week under the Worker Adjustment and Retraining Notification Act, known as «WARN», a knowledgeable source told Reuters.
US airlines warn tens of thousands of jobs could be threatened in fall.