And packed in there is $15 billion for airlines, ostensibly to get them to hire back furloughed workers. … But there’s only about 40,000 furloughed workers, and the $15 billion is only meant to last four months – pay is retroactive to December 1.
Will American Airlines Get Bailout?
American Airlines, along with the likes of United, Delta, Southwest and other airlines, will now get their hands on a $15 billion slice of the $900 billion emergency funding package. … Airline workers will be hoping that an even larger bailout is proposed once President Elect Joe Biden takes office in January.
Did Delta Airlines get a bailout?
Bastian, perhaps inadvertently speaking for his fellow airline chief executives as well, defended Delta taking a $5.4 billion bailout from the federal government in March as part of the CARES Act stimulus package on the heels of years of stock buybacks – $11.5 billion, in fact, between 2013 and 2019.
How much did American Airlines get in bailout?
On Friday, American said in a Securities and Exchange Commission filing that it had agreed with the Treasury Department on a $5.5 billion loan, using its frequent flier program as collateral. The airline expects to be able to raise that number to $7.5 billion. The government initially offered American $4.75 billion.
Why are airlines getting bailouts?
In a first effort to help airlines weather the storm, Congress created a bailout package for US commercial airlines in April 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Did Southwest Airlines take bailout money?
Southwest Airlines says it doesn’t want — or need — to borrow any money from Uncle Sam after all. Earlier this year Southwest, which carries more domestic passengers annually than any other U.S. airline, took a grant of $3.2 billion from Congress via the CARES Act economic stimulus package approved in March.
Is a bailout a loan?
A bailout is the injection of money into a business or organization that would otherwise face imminent collapse. Bailouts can be in the form of loans, bonds, stocks, or cash. Some loans require reimbursement—either with or without interest payments.