WEDNESDAY APR 24, 2024
×
Search AeroXplorer
Trump Administration Releases Financial Aid Package for U.S. Airlines

Trump Administration Releases Financial Aid Package for U.S. Airlines

BY DANIEL MENA 19838d AGO 0 COMMENTS
Airport Photo
United Airlines aircraft resting at Houston IAH Airport pre-COVID-19. Credit: TheExplorerBlog | Daniel Mena

 

After a meeting with Steven Mnuchin, the United States Secretary of Treasury, Donald Trump and his administration have released an financial aid package that includes the larger airlines repaying loans with interest after the pandemic is over. 

 

Since the COVID-19 pandemic began, airlines have been struggling to stay afloat, as passenger demand has been diminishing greatly. These airlines have been forced to cut flights, greatly decreasing revenue. Many airlines have even been prompted to retire their aircraft early, as the idea of paying for maintenance of grounded aircraft has been unfavorable to airline executives. 

 

In response, Donald Trump met with Steven Mnuchin this weekend and finalized a plan that would provide financial aid to U.S. airlines impacted by the virus. These packages are mainly planned to be used for payroll assistance, as airlines have many employees that continue to work throughout the pandemic. The largest U.S. airlines, some of which planned to be given billions of dollars in payroll assistance, would have to pay back 30 percent within the next five years, with light interest. Loans given under 100 million dollars (mostly to smaller airlines) do not have to be repaid. So far, the U.S. government has already received 230 applicants for this financial aid grant.

 

This aid package is part of a much larger, $2 trillion federal stimulus bill includes grants dedicated to payroll assistance: $25 billion to passenger airlines, $4 billion for cargo airlines, and $3 billion for airline contractors, such as Swissport. On top of this, $29 billion is planned to be used for airline loans and $10 billion is allocated for airports.

 

Donald Trump plans to meet with airline executives this weekend to discuss specifics about the amount of pay to each airline. More information will be released as it becomes known.

 

Source: Yahoo Finance

 

 

 

Daniel Mena
President and Founder of AeroXplorer. Web Developer and Aviation photographer. Contact me for questions and inquiries through my Instagram DMs, linked below.

Comments (0)

Add Your Comment

SHARE

TAGS

NEWS coronavirus covid-19 trump treasury financial aid finance

RECENTLY PUBLISHED

ANALYSIS: Some Pacific Airports Could be Underwater Sooner Than We Think As some nations shrink into the sea, aviation remains important to keeping the economy and tourism industries alive. INFORMATIONAL READ MORE »
Dream Big: 8 Thrilling Aviation Careers That Don't Involve Flying Are you considering a career in the aviation industry, but you do not think you are quite cut out to be a pilot? Here are some alternative jobs that you can pursue if you want to work in the aviation industry. INFORMATIONAL READ MORE »
The World's Top 5 Most Breathtaking Airport Designs Airports are more than just places for planes to land and take off; they serve as ambassadors of the communities they serve. In many cases, they provide the first impression of a city or country to passengers passing through. INFORMATIONAL READ MORE »


SHOP

$2999
NEW!AeroXplorer Aviation Sweater Use code AVGEEK for 10% off! BUY NOW

FOLLOW US ONLINE