U.S. airlines apply for U.S. payroll help but terms still unclear

[turbinetree]

Source: Reuters

BUSINESS NEWS APRIL 3, 2020 / 11:05 AM / UPDATED AN HOUR AGO

Tracy Rucinski, David Shepardson
4 MIN READ

CHICAGO/WASHINGTON (Reuters) - Major U.S. airlines applied on Friday for payroll grants from the U.S. Treasury meant to keep workers employed during a sharp downturn from the coronavirus, though the terms of any aid were still unclear and some warned that funds would not be enough to help them through their toughest crisis ever.

American Airlines Group Inc (AAL.O), United Airlines Holdings Inc (UAL.O), Delta Air Lines Inc (DAL.N), Southwest Airlines Co (LUV.N) and JetBlue Airways Corp (JBLU.O) each said they had submitted grant applications but did not disclose details or terms.

Treasury had asked companies to propose financial instruments such as warrants or equity options as possible taxpayer compensation for up to $32 billion in payroll grants for airlines, cargo carriers and airport contractors under the CARES Act passed by Congress last week.

Treasury set a 5 p.m. EDT (2100 GMT) Friday deadline to expedite the grants. There is a second final deadline on April 27.

Read more: https://www.reuters.com/article/us-health-coronavirus-airlines-usa/u-s-airlines-apply-for-u-s-payroll-help-but-terms-still-unclear-idUSKBN21L2AL

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https://en.wikipedia.org/wiki/Warrant_of_payment

[matt819]

1. Tsk tsk

Politicians always demand that the proletariat have at least 3 months of savings for a rainy day. Looks like corporations, who are people too, don’t gsvrvto do the same.

[Igel]

2. Will the workers accept the money?

Even if they still have savings?

Because that's what this money's for--not for the corporations to use. I've taken to calling this money "pass-through funding", since the businesses are just administering it, providing the conduit to get it from the Treasury into a worker's paycheck.