Treasury wants warrants, repayment from major U.S. airlines on 30% of grant money

[alp227]

Source: Reuters

WASHINGTON/CHICAGO (Reuters) - U.S. Treasury Secretary Steven Mnuchin told major airlines on Friday he wants them to repay some of the $25 billion in cash grants the U.S. Congress approved last month to cover payroll costs as airlines weather an unprecedented crisis due to the coronavirus, three industry officials briefed on the matter told Reuters.

The Treasury said in a statement Mnuchin will not require passenger air carriers that will receive $100 million in payroll assistance or less to provide compensation and “funds will be available promptly upon approval of their applications.”

Reuters first reported earlier on Friday that Treasury would not seek warrants from smaller regional carriers, which had urged the government not to demand compensation.

Mnuchin spoke with the chief executives of major airlines in separate calls on Friday and told them the department was offering 70% of the aid in grants that would not need to be repaid, and 30% in low-interest loans for which the airlines would be required to offer warrants, the sources said. The interest rates would rise over time if airlines had not repaid them, the sources said.

Read more: https://www.reuters.com/article/us-health-coronavirus-usa-airlines-progr/exclusive-treasury-wants-warrants-repayment-from-major-u-s-airlines-on-30-of-grant-money-sources-idUSKCN21S1Y7

[customerserviceguy]

1. And while we're at it

Laws involving further bailouts should specify a certain minimum seat pitch, to restore a tiny bit of comfort to those who choose to fly. It will be awhile between the time when this pandemic is over with and people start flying in large numbers, aircraft workers can change seating configurations in that time instead of building more airliners.

[VarryOn]

11. Amen! I'd also throw in...

A moratorium on checked bag fees. They've made a killing off those the last few years.

If taxpayers are going to help airlines out, they need to show some gratitude.

[customerserviceguy]

12. Checked bag fees

are why cattle class has become hell, with everyone jostling for the tiny bit of space available in the overhead bins. By the way, while the airlines were adding rows of seats, those overhead bins remained the same size.

[yaesu]

2. So they spent their trillions of tax break money on stock repurchases to fatten their bank accounts

and now they are crying to their sugar daddy who will gladly bail them out. In the meantime they are letting USPS go under because they want to sell what is left to the highest corporate bidder & destroy all those union jobs.

[msongs]

3. contact every congressperson u can and demand they protect the USPS nt

[aggiesal]

5. Privatize profits. Socialize debts! ...

That's how capitalism works.

[ProfessorGAC]

7. They've Also Run Cash Lean

Better to have held that cash & external bond investments than buy back stock.
Now, the storm hit and they have no shelter.
I hate Mnuchin, but I want that money paid back, too.
With interest.
Top execs can't develop a business plan to do it without concessions from workers, fire them all & bring in someone who can.

[Roy Rolling]

4. "Some"?

Repay some of the $25 billion?

Fuck him. They refuse to help the USPS which is under attack by his privatization buddies.

That $2.2 trillion in aid is re-election money for Trump.

Don’t fall into that trap. When there’s a Democratic President, Republicans will be screaming to cut the budget they blew up.

[OnlinePoker]

6. And here's Trumps reaction when someone questioned it

Not good Gregg, but it is what it is. Have to save the airlines!

Link to tweet

--------------------

I thought good capitalists allowed companies to survive or fail on their own. Bankruptcy and restructuring as Trump is in a habit of doing.

[bucolic_frolic]

8. Oh yes, warrants will be good for selling to cronies below the radar

[Skittles]

9. why not all of it?

what bullshit

[JCMach1]

10. 100pct perhaps

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