Necessary turbulence

15 April 2020 By Lauren Silva Laughlin Follow @TheRealLSL

The U.S. Treasury secretary negotiated potential equity stakes in the likes of American and United, as well as insisting they repay some of the $25 bln in virus grants. Airline officials aren’t happy. But the terms seem less punitive than banks got in 2008. On balance, it’s fair.

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Ten U.S. airlines plan to participate in the U.S. Treasury Department’s Payroll Support Program, the agency said on April 14. The companies include: Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines and Southwest Airlines.

The government agency and the airlines spent the weekend debating final terms of the bailout package, according to the Wall Street Journal.

On March 30, American Airlines offered voluntary and early retirement packages to employees. They had to apply for the packages by April 3 at 11:59 a.m. CT (1659 GMT).

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