This Saturday, the Trump administration said that they have provided 12.4 billion for 93 air carriers in order to help them in preserving jobs. The airline sector is already struggling very hard in the coronavirus crises.
The treasury department stated that they will continue making additional payments on a regular basis.
In the USA, the aviation sector is stuck due to the global pandemic which is forcing the airlines to cancel thousands of flights.
The cargo aircarriers are also facing problems.
All those carriers receiving $5o million or less of payroll support or those contractors receiving $37.5 million or less of payroll will not be asked to provide financial instruments in exchange for the aid.
In mid-April, the biggest US air companies and the Trump administration both reached an agreement according to which the administration will help these companies from getting bankrupt and will help avoid massive layoffs in the industries.
The terms of the agreement have not been revealed yet. Some sources say that it calls for the federal government in exchange for financial aid in order to get warrants or financial products that can, later on, convert into shares. This way the state will become a minority shareholder among the other participant air companies.
It is the Treasury’s responsibility to distribute the 2.2 trillion in emergency aid agreed by the congress and signed by the president last month.
The administration will avoid the suggestion of favoritism and the suggestion of distributing billions without liability.
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