bailout

Tag Archives for bailout.

Stimulus Checks Going Out The Door… To Airlines

woman using ATM
Apr 21 2020

So far $2.9 out of $25 billion has been disbursed “to 54 smaller passenger carrier and two major passenger airlines,” and agreements have been reached with Allegiant, American, Delta, Southwest, Spirit and United.

It turns out the government has put itself on a payment plan to fulfill its bailout commitments.

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What The Government Wants, In Exchange For Airline Payroll Grants

Apr 10 2020

The way the law was written the administration doesn’t have to just give away all the money. While the industry and Democratic senators (at the behest of airline unions) have argued that the money shouldn’t come with requirements, the Treasury Secretary reportedly placed a call to airline CEOs laying out the requirements for the $25 billion in payroll grants.

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U.S. Government Might Take Frequent Flyer Programs As Collateral For Bailout

Apr 08 2020

If airlines are going to receive a bailout, taxpayers should receive some assurance of recovering the funds when times are good. And any deal should be structured to incentivize airlines to get out from under partial nationalization as quickly as possible.

The Treasury Department is asking airlines seeking bailout funds to detail the economics of their frequent flyer programs as one source of collateral.

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