U.S. Govt to take small ownership stakes in airlines

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U.S. Govt to take small ownership stakes in airlines

Postby Greg on Tue Apr 14, 2020 6:39 am

Some large U.S. passenger airlines are close to accepting the terms of a $25 billion offer for government coronavirus payroll aid, with announcements possible as early as Tuesday, people briefed on the matter said.

Brent McIntosh, the Treasury undersecretary for international affairs, told Reuters on Monday the agency was not planning to change the terms laid out on Friday, which require 30% of the funds allotted to each airline to be repaid.

The U.S. government would also receive warrants equal to 10% of the loan amount.

According to airlines’ market capitalization on Friday, the government could end up owning about (3% of American) 2.3% of United, 1% of Delta, 1.3% of JetBlue Airways Corp (JBLU.O), and 0.6% of Southwest.

Reuters
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