As a condition of aid, airlines must waive redundancies and wage cuts by September 30. The official said the structure of the agreement was a carefully negotiated compromise, as airlines sought subsidies without repayment and the administration preferred loans. Economic relief laws also provided $25 billion separated specifically for airline loans, but the official said negotiations with companies on those funds had not yet begun. The Ministry of Finance is also negotiating with carriers that can benefit from $8 billion in subsidies and loans. WASHINGTON – The Trump administration has agreed with major airlines on a $25 billion bailout to support an industry plagued by the coronavirus pandemic. « Our airlines are now in good shape and they are going through a very difficult time that was not caused by them, » Trump said. The Ministry of Finance announced Tuesday that 10 of the government`s 12 largest airlines had announced that they intend to accept $2.2 trillion in aid under the stimulus package adopted last month. All major U.S. airlines have already accepted government financial assistance to allow wages to be counted by the end of September, but this second round of credit goes to some of the airlines in the weakest financial positions in the midst of the pandemic. At the beginning of the year, American Airlines was the most indebted of all major U.S. airlines, while low-cost airlines such as Spirit, Frontier and Hawaiians suffered the damage caused by a massive shutdown of leisure and vacation travel. American, United, Delta, Southwest, JetBlue, Alaska and Frontier are among the airlines that agree to the terms.
Negotiations continue with others. At a briefing, President Trump said the aid would help airlines through a difficult time. WASHINGTON – The largest U.S. airlines have agreed on the principle of financial assistance to the federal government to avoid layoffs in a difficult industry. « We are pleased that a number of airlines have decided to participate in the Payroll Support Program, despite the restrictions imposed by the Ministry of Finance on this funding, » said Captain Joe DePete, President of the Air Line Pilots Association. « Unfortunately, the Ministry of Finance is undermining the intent of the CARES Act by treating some of the employment subsidies not as subsidies, but as credits, which will make it more difficult to stop layoffs and slow the recovery. » Airlines, hard hit by border closures around the world, had been working with the Ministry of Finance to secure facilities to keep workers on the payroll.