U.S. Treasury Continues Talks on $25 Billion in Aviation Subsidies

Talks between U.S. airways and the Treasury Department over how to award $25 billion in cash grants allocated for payroll assistance because of the coronavirus pandemic had been set to continue into the evening Tuesday, individuals briefed on the matter stated.

U.S. Treasury Continues Talks on $25 Billion in Aviation Subsidies

Airlines and the Treasury have been in discussions since last week over what compensation the government will demand as a condition of the grants. Treasury has sought additional data from airways as the discussions have progressed on a method for determining government compensation, the folks stated.

Treasury Secretary Steve Mnuchin has repeatedly stated taxpayers will probably be “compensated” for the grants and that the assistance isn’t a “bailout,” while some Democrats in Congress and aviation unions have requested him not to demand equity or warrants.

Earlier Tuesday, the U.S. Transportation Division finalized minimal service guidelines for airways receiving help. The division stated the place a number of airports serve the identical level; carriers don’t want to maintain service to all of them, which might “impose undue prices.”

Bigger carriers might want to fly at the least five instances every week on routes the place they beforehand flew no less than 25 weekly flights. Smaller carriers might want to fly three weekly flights on routes they beforehand served not less than five instances per week.

U.S. airways have canceled lots of 1000’s of flights and minimize thousands of seats as journey demand has almost collapsed.