[Slashdot] - The Trump Administration and a Group of Major Airlines Have Agreed On a $25 Billion Bailout

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According to The New York Times, the Trump administration has reached an agreement in principle with major airline companies over a $25 billion bailout to prop up the struggling industry. From the report: The terms of the agreement were not disclosed on Tuesday. The Treasury Department said that Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines and Southwest Airlines will be participating in the payroll support program, which was created as part of the economic stabilization package that Congress passed last month. The administration has been haggling with the airlines over the terms of the bailout, with Mr. Mnuchin pushing the airlines to agree to repay 30 percent of the money over a period of five years. The Treasury Department also has been seeking warrants to purchase stock in the companies that take money. Airlines have complained that Treasury was effectively turning the grants into loans by requiring repayment. Last week, the Treasury Department said that it would not require airlines that receive up to $100 million in bailout money to give the government equity stakes or other compensation. The government had received over 200 applications from American airlines seeking payroll support and Treasury said that the majority of those were asking for less than $10 million. Airlines for America, an industry lobbying group, said that as of April 9, American airline carriers had idled 2,200 aircraft and that passenger volume was down 95 percent from a year ago. The industry expects global passenger revenues to fall by $252 billion this year.

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