15:57 GMT04 August 2020
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    WASHINGTON (Sputnik) – Five more US air carriers have reached loan agreements with the federal government to help them cope with the fallout of the coronavirus pandemic, Treasury Secretary Steven Mnuchin said in a statement on Tuesday.

    "We welcome the news that Alaska Airlines, Delta Air Lines, JetBlue Airways, United Airlines, and Southwest Airlines have now also signed letters of intent,” Mnuchin said.

    Last week, five other US air companies - American Airlines, Frontier Airlines, Hawaiian Airlines, Sky West Airlines and Spirit Airlines - signed up for relief to address the effects related to the coronavirus pandemic under Division A, Title IV, Subtitle A of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

    The major US airlines play a significant role in the nation's economy and were heavily affected by disruptions in social and economic activity caused by the pandemic, Mnuchin said.

    "Treasury’s authority under the CARES Act to provide up to $25 billion in liquidity to passenger air carriers and related businesses will help preserve America’s aviation industry while also protecting taxpayers," he added.  "We look forward to working with the airlines to finalize agreements and provide the airlines the ability to access these loans if they so choose."

    Borrowers are required to provide warrants, equity interests, or senior debt instruments as appropriate taxpayer compensation, the statement said.

    They also commit to certain requirements under the CARES Act to maintain employment levels and limit employee compensation, dividends and share repurchases, the statement added.

    Tags:
    United Airlines, Alaska Airlines, COVID-19, loans, airlines, Steven Mnuchin, United States
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