logo
Plus   Neg
Share
Email

US Treasury Department Reaches Loan Agreements With 5 Major Airlines

The U.S. Department of the Treasury Thursday announced that 5 major US airlines, including American Airlines, Frontier Airlines, Hawaiian Airlines, Sky West Airlines, and Spirit Airlines, have agreed to the terms on which Treasury would extend loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

"We are pleased that major air carriers intend to use this important program and for Treasury to use its authority under the CARES Act to provide much-needed financial assistance, while ensuring appropriate taxpayer compensation," said Secretary Steven Mnuchin. "Conversations with other airlines continue, and we look forward to finalizing agreements as soon as possible."

The CARES Act authorizes the Department of the Treasury to make loans to eligible businesses related to losses incurred as a result of the coronavirus pandemic.

It requires borrowers to provide warrants, equity interests, or senior debt instruments as appropriate taxpayer compensation.

Participating borrowers must also commit to certain requirements under the CARES Act to maintain employment levels and limit employee compensation, dividends, and share repurchases.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Amazon.com, Inc. can be held liable for damages caused by defective goods sold on its Marketplace including third parties, according to a ruling by a California appeals court. The California Fourth District Court of Appeals was pronouncing the ruling in a case where a defective replacement laptop battery caught fire and inflicted a woman with third-degree burns. Facebook has launched "Voting Information Center" on Facebook and Instagram platforms, with a view to boosting the number of Americans vote in the upcoming U.S. presidential election in November. The social media giant's latest initiative is expected to help 4 million voters register this year, and help them navigate a 'confusing election process'. Epic Games Inc., the developer of popular game Fortnite, has filed lawsuits against both Apple Inc. and Google after they removed the game from their app stores. The development reflects disputes related to app store fee the tech giants take from each purchase. Epic Games, which has been against the 30 percent revenue cut the two tech giants take from paid apps, added a direct payment option.
Follow RTT