- Title: U.S. Senate approves big rescue for struggling aviation sector
- Date: 26th March 2020
- Summary: BIRMINGHAM, ALABAMA, UNITED STATES (MARCH 25, 2020) (REUTERS) VARIOUS AERIALS OF PARKED DELTA AIR LINES PASSENGER PLANES
- Keywords: Delta Senate airlines coronavirus parked rescue package
- Reuters ID: LVA001C6OVOZR
- Location: BIRMINGHAM, ALABAMA, UNITED STATES
- City: BIRMINGHAM, ALABAMA, UNITED STATES
- Country: USA
- Duration: 00:00:39
- Aspect Ratio: 16:9
- Topics: Company News Markets,Economic Events
- Story Text:The U.S. Senate voted late Wednesday (March 25) 96-0 to give the U.S. aviation industry $58 billion in a coronavirus-rescue package, half in the form of grants to cover some 750,000 employees' paychecks, in a badly needed lifeline for an industry facing the worst travel downturn in history.
The $2 trillion economic rescue package awards passenger airlines $25 billion in grants and $25 billion in loans, cargo carriers another $8 billion divided between loans and grants, and airport contractors like caterers up to $3 billion in grants. The U.S. House of Representatives is expected to vote to approve the measure Friday and President Donald Trump has promised to sign it into law.
The bill has restrictions on stock buybacks, dividends and executive compensation, and allows the government to take equity, warrants or other compensation as part of the rescue package, but does not require it.
Airlines would also receive tax relief on fuel purchases and, in a move that may bring down passenger fares, a temporary suspension on ticket taxes.
As the coronavirus has spread around the world, travel demand has plummeted, with airlines drastically reducing flights and warning of more cuts to come.
(Production: Bob Mezan)
- Copyright Holder: REUTERS
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- Embargoed:9th April 2020 05:42
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