President Trump has an idea to help the airlines make it through to the future, while getting a deal for taxpayers: pay up front for several years of travel, but get a bigger discount from the airlines for doing it.
bailout
Tag Archives for bailout.
An Airline That Doesn’t Actually Exist Applied For $15 Million Airline Bailout
Avatar Airlines applied for $15 million in CARES Act funding seeking a portion of the federal airline bailout – even though by their own admission they “have no flights, no overhead, administrative expense, or fixed costs at the present time.”
Stimulus Checks Going Out The Door… To Airlines
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.
Bailout Double Cross: We Gave Airlines Money Not To Reduce Worker Pay, They’re Doing It Anyway
The airline bailout provided cash to continue to pay employees. They aren’t allowed to involuntarily lay off employees or reduce rates of pay through September 30. However one U.S. airline found a workaround: requiring unpaid time off. That way they keep the money to protect shareholders at the expense of employees.
Airlines Agree To Bailout Terms. Will They Take Travel Vouchers Instead?
American Airlines announced that it will receive a $5.8 billion bailout: $4.1 billion grant, and $1.7 billion loan. They will also apply for a separate $4.75 billion loan.
Southwest Airlines announced that it will receive $3.2 billion: a $2.3 billion grant and a $1 billion loan.
What The Government Wants, In Exchange For Airline Payroll Grants
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.
U.S. Government Might Take Frequent Flyer Programs As Collateral For Bailout
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.
Israel’s Finance Ministry Refused A Bail Out For El Al
Israel’s Ministry of Finance turned down El Al’s request for a $350 million government-backed loan. In explaining the decision, the finance ministry said it “did not believe El Al would be able to repay” the money.
El Al has suspended all commercial flights and is operating only cargo and government-sponsored repatriation flights.
How The Government Bailout Could Wind Up Unionizing Delta Air Lines
Delta can’t take government money and furlough pilots. Without the ability to furlough pilots they can’t get pilots to agree to cuts. And pilots getting full pay while everyone else suffers is going to make it hard for Delta to make the case to other work groups to remain non-union.
How To Get Your Piece Of The Government Airline Bailout
The federal Paperwork Reduction Act Notice estimates that your request for billions of dollars should take just two hours to complete. So out of those of you with a good faith belief that you’re an airline contractor under the Act, who’s in? You can just submit a request for funds by e-mail.