Cash grants for airlines look set to fail

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A last-ditch effort by U.S. airlines and cargo carriers to win $29B in cash grants (of $58B in assistance) appears to be unsuccessful, according to four congressional aides and airline officials.

In return, they had offered not to make any job cuts through Aug. 31, accept restrictions on executive pay and forgo paying dividends or stock buybacks.

“Time is running out” and “draconian measures” such as furloughs may now be necessary, said the CEOs of United (NASDAQ:UAL), Delta (NYSE:DAL), American (NASDAQ:AAL), Southwest (NYSE:LUV), JetBlue (NASDAQ:JBLU), Alaska Air (NYSE:ALK), Hawaiian (NASDAQ:HA) FedEx (NYSE:FDX), UPS (NYSE:UPS) and Atlas Air (NASDAQ:AAWW).

Senate Republicans hope to unveil $50B in collateralized loan and loan guarantees for passenger airlines and $8B for cargo carriers on Sunday, though Senate Democratic Leader Charles Schumer said final airline provisions could change.

In related news, the U.K. government is planning to buy equity stakes in airlines and other companies affected by the coronavirus pandemic, including IAG-owned British Airways (OTCPK:ICAGY).

Source: dailystockbuzz

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