U.S. lawmakers nearing deal for massive aviation sector bailout - sources

[turbinetree]

Source: Reuters

POLITICS MARCH 24, 2020 / 12:11 PM / UPDATED 35 MINUTES AGO

WASHINGTON/CHICAGO (Reuters) - U.S. lawmakers are nearing agreement on a $61 billion rescue package for the aviation sector that would include $25 billion in payroll grants for passenger airlines weathering a sharp falloff in travel demand amid rising coronavirus outbreaks, three people briefed on the matter said.

The deal, which still needs final approval from lawmakers, is also expected to include $4 billion in grants for cargo carriers and $3 billion for contractors like caterers to cover payroll costs, as well as another $29 billion in loans.

The package follows a forceful push by airlines and unions that any aid include grants, rather than just loans as in a preliminary Republican proposal envisioned over the weekend.

Airlines have warned that without cash grants they could be forced to lay off hundreds of thousands of people as U.S. travel demand has collapsed, leaving the airlines without trained staff to jump-start their operations, and the economy, once demand returns.

Read more: https://www.reuters.com/article/us-health-coronavirus-airlines/u-s-lawmakers-nearing-deal-for-massive-aviation-sector-bailout-sources-idUSKBN21B2LS

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Airlines previously agreed to forgo stock buybacks and dividends and limit executive compensation if they won cash grants. It is unclear if U.S. Treasury will be able to demand equity as a condition of the assistance.

U.S. airline stocks were up sharply on Tuesday afternoon on optimism a deal was near. American Airlines Group Inc (AAL.O) shares were up 30% at $13.32, Delta Air Lines (DAL.N) jumped 15.8%, United Airlines (UAL.O) rose 20.4% and JetBlue Airways Corp (JBLU.O) was up 27.7%.

Other airlines around the world, contemplating months without flying, have also said they need the support of their governments to survive.

Reporting by David Shepardson in Washington and Tracy Rucinski in Chicago; Editing by Sandra Maler and Matthew Lewis

So basically the taxpayers will have warrants...........................

[NCjack]

1. No grants for Trump. His oligarch backers in Russia have deep pockets.

Force Trump to sell them a bigger piece, if that's possible.

[bucolic_frolic]

2. So these workers will be paid with government bailout money, and receive $1200 each too?

[captain jack]

3. "Airlines...need the support of their governments to survive." Not just the airlines.

I bet the corporations are grateful the Republicans have failed to "shrink government to the size where we can drown it in a bathtub."

Oh and then there's this one from Reagan: "The nine most terrifying words in the English language are: I'm from the Government, and I'm here to help."

I'd say "I'm from the Corporation, and I'm here for more help" is far more terrifying.

[captain jack]

5. And keep in mind, we, the People, are the Government they are speaking about. nt

[hibbing]

4. What happened to the magic hand of the free market?

I get that some of this will be needed, but you know with the king of grifters and his whole grifting family will be all over this money and then call us socialists.

Peace

[FiveGoodMen]

13. It controls the government. That's the magic part.

[Bayard]

6. I'm a small business

Self-employed. I certainly wish I could get a "grant", I didn't have to pay back. My business went in the toilet with everything going on, and I'm not even sure I can get the $1,200 they're supposed to send out.

As Robert Reich was saying yesterday--its ridiculous to be bailing out airlines and cruise ships, when they can go get dirt cheap loans using their planes/ships as collateral.

[bucolic_frolic]

7. Congress repeals business cycle with financial engineering

The Fed, investment banks, hedge funds, and Powell are out of bullets.

[lark]

8. Fuck them, they got billions in tax decreases and used it to fatten their own wallets, & did nothing

at all for their workers and now they are getting rewarded for it? WTF Democrats - say no! Dont let them keep raping us, because this is part of the huge shortfall they engineered to use to destroy entirely our social safety net & steal all rhe social seurity funds and have given them to the rich who also got huge tax cuts! They will also end public schooling and all labor and environmental laws and end any type of birth control so we have a huge underclass of serfs who have little to no schooling and who have no rights and work for nothing, get sick and die young. This is the first step in their plan and Dems don't seem to be fighting hard enough.

[fleur-de-lisa]

9. I don't agree with the airlines getting assistance, but we need to keep cargo going.

[Traildogbob]

11. Airlines are one thing

But cruise ships that are not even registered under the US so not to pay taxes. Fuck any Corp that pays no taxes. Trump interprises???? Let trump Oversee the slush fund, are you nuts?

[fleur-de-lisa]

12. Yes, the cruise line can get fucked.

[Scalded Nun]

14. At what point does someone step in and stop this socialist effrontery to capitalism?

[ArizonaLib]

15. Probably when the billionaires get tired of hoarding money

The tinkle down effect at work.

[BigDemVoter]

16. WHAT?

I thought the Dems had managed to defeat this, because it all went to bonuses and stock buy backs last time, no?