A bipartisan coronavirus aid package in the Senate offers $58 billion to the nation’s airlines, split evenly between loans and payroll grants.
The coronavirus bailout package, which aligns with requests made by US airlines, would prohibit stock buybacks and share dividends for at least a year after the loans have been repaid. It also restricts executive compensation.
Airlines would be prohibited from laying off or furloughing employees through September, should the crisis for air carriers continue past then, effectively protecting “hundreds of thousands of jobs,” one union official said.
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Airlines will receive nearly $60 billion in financial assistance as part of the Senate’s rescue package, meeting their request as the industry falls into a tailspin due to the coronavirus pandemic.
The bill grants $25 billion in loans and loan guarantees for passenger airlines, and an additional $4 billion for cargo air carriers.
Additionally, the bill gives airlines $25 billion in grants to pay workers through September. Cargo air carriers get an additional $4 billion.
A separate $17 billion in loans is specified for companies “critical to maintaining national security.” Boeing is reported to be the intended recipient for a large portion of the amount.
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Source:: Businessinsider – Politics