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U.S. Treasury wants major airlines to repay part of grants, give up warrants: sources

Published 04/10/2020, 05:41 PM
Updated 04/10/2020, 05:45 PM
© Reuters. U.S. Secretary of the Treasury Mnuchin walks to the meeting for a coronavirus relief package in Washington

WASHINGTON (Reuters) - U.S. Treasury Secretary Steven Mnuchin told major airlines on Friday he wants them to repay some of the $25 billion in cash grants the U.S. Congress approved last month to cover payroll costs, three industry officials briefed on the matter told Reuters.

Mnuchin spoke with the chief executives of major airlines in separate calls on Friday and told them the department was offering 70% of the grants that would not need to be repaid, while airlines would be required to offer warrants and repay low-interest loans in exchange for the remaining 30%, the sources said.

Regional carriers receiving $100 million or less will not need to grant warrants to the government.

Treasury did not immediately comment.

Latest comments

The US does not need to be worrying about airlines. There will not be many flights during a depression. You need to get money in the hands of people. There is no demand in the small business world.
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