Skip to main content

Treasury Department could upsize airline loans as Delta, Southwest stay on sidelines

NewsColony
Treasury Department could upsize airline loans as Delta, Southwest stay on sidelines

A member of a ground crew walks past American Airlines planes parked at the gate during the coronavirus disease (COVID-19) outbreak at Ronald Reagan National Airport in Washington, U.S., April 5, 2020.

Joshua Roberts | Reuters

The Treasury Department on Tuesday said airlines could receive larger federal loans than previously expected after some carriers opted out, freeing up more funds in the program.

Congress in March approved $25 billion in federal loans for U.S. passenger airlines to help them weather the coronavirus pandemic, which has kept air travel demand at roughly 30% of last year’s levels.

Despite preliminary agreements, Southwest Airlines and Delta Air Lines have said they ultimately don’t plan to pursue the loans, thanks to other sources of financing. Delta, for example, earlier this month said it was able to upsize a debt sale backed by its SkyMiles frequent flyer program to $9 billion from the $6.5 billion it planned.

Airlines have until Wednesday to decide whether to take the federal loans.

Seven airlines —  Alaska, American, Frontier, JetBlue, Hawaiian, SkyWest and United are planning to take the loans, the Treasury Department said.

American last week said it secured $5.5 billion from the program, more than the $4.75 billion it had expected to receive. The Fort Worth-based carrier said it expects it will have up to $7.5 billion available, the maximum amount for a single carrier.

U.S. passenger airlines also received portions of $25 billion in payroll support, mostly grants, from the government. Those funds prohibit carriers from cutting jobs until Oct. 1, but in just hours, the airlines, mostly American and United, plan to cut more than 30,000 jobs.

Airlines and their labor unions are urging Congress for an additional $25 billion that would preserve sector jobs through March 31.

Source: Cnbc

The post Treasury Department could upsize airline loans as Delta, Southwest stay on sidelines appeared first on NewsColony.
NewsColony



source https://newscolony.com/treasury-department-could-upsize-airline-loans-as-delta-southwest-stay-on-sidelines/

Comments

Post a Comment

Popular posts from this blog

What you should do if you have coronavirus

NewsColony What you should do if you have coronavirus Click to expand Replay Video UP NEXT Watch a COVID-19 Lab Test Watch a COVID-19 Lab Test Redding Record Searchlight Redding’s first cannabis store, Synergy, opens for business Redding’s first cannabis store, Synergy, opens for business Redding Record Searchlight Five tips to be a rock painter Five tips to be a rock painter Redding Record Searchlight SETTINGS OFF HD HQ SD LO Skip Ad UP NEXT You wake up with a dry cough or headache. It could be the common cold or allergies, or it could be the coronavirus.  So, what should you do next?  The Centers for Disease Control and Prevention and other public health experts recommend taking the following steps if you’re feeling sick and think you may have COVID-19.  Start the day smarter. Get all the news you need in your inbox each morning. Do an inventory of symptoms:  Dry...
Post a Comment
Read more

Coronavirus Live Updates: Online Retailers Plan Campaign to Rescue Postal Service

NewsColony Coronavirus Live Updates: Online Retailers Plan Campaign to Rescue Postal Service Here’s what you need to know: Image A United States Postal Service employee making deliveries in the Bronx last month. Credit… Desiree Rios for The New York Times Online retailers, including Amazon, want Congress to save the Postal Service. A coalition of online retailers backed by Amazon plans to start on Wednesday a seven-figure advertising blitz opposing President Trump’s demand that the beleaguered United States Postal Service ratchet up its package delivery rates to avoid bankruptcy during the coronavirus crisis, its top lobbyist said. The ads will begin running nationally Wednesday night on “Hannity,” one of Mr. Trump’s favorite programs on Fox News, and on Rush Limbaugh’s radio show on Thursday. They do not mention the president but label his proposal to raise delivery prices “a massive package tax” on small businesses and Americans who rely on the mail for pre...
Post a Comment
Read more

China’s military is world’s first to use experimental virus vaccine

NewsColony China’s military is world’s first to use experimental virus vaccine © AFP An experimental coronavirus vaccine has been approved for use by the Chinese military – a first for the armed forces of any country. Photo: AFP China has approved military use of an experimental coronavirus vaccine developed by the People’s Liberation Army and a Chinese pharmaceutical company, in a first for the armed forces of any country. The vaccine, identified as Ad5-nCoV, was jointly developed by a team at the Academy of Military Medical Sciences, led by Major General Chen Wei, and Tianjin-based company CanSino Biologics . It is the first time that a vaccine candidate for Covid-19, the disease caused by the coronavirus, has been authorised for use for the military of any nation. CanSino said on Monday that the candidate had been through two phases of clinical trials, which indicated it was safe and there was “relatively high” immune response to the antigen. The candidate is yet to start ...
Post a Comment
Read more