American Airlines to receive $5.8 billion in payroll support from U.S. Department of the Treasur

American Airlines will receive $5.8 billion in government aid to pay its employees as the airline announced on April 14th. Amid a sharp decline in profits and revenue, the airline joined a coalition of others to seek government aid. Now, after the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, American Airlines will receive funds to pay its employees salaries and benefits.

The fund will come in two directions ,a direct grant of $4.1 billion, and a low-interest rate loan of $1.7 billion. In addition to the $5.8 billion, American expects to separately apply for a loan from the U.S. Treasury of approximately $4.75 billion.

American Airlines Chairman and CEO Doug Parker commended the support.

“The Payroll Support Program recognizes the extraordinary dedication of our entire team, and importantly, sustains the critical air service being provided by our frontline team members,” he said. “Those team members are our heroes, and we are elated that this program will enable us to continue to employ and pay our team while they fly through this period of depressed consumer demand. This program would not have come about without the collaborative, bipartisan approach that was undertaken, and we applaud the administration, Secretary Mnuchin, Secretary Chao and congressional leadership for their efforts and vision. We also are thankful for the extraordinary support of our team and the unions that represent them.

“The support our government has entrusted to us carries immense responsibility and an obligation that American Airlines is privileged to undertake. We recognize the importance of our service as evidenced by the customers who continue to fly today for important reasons, including medical professionals getting to where they are most needed and family members getting to where they feel most safe. It is our privilege to continue flying through the downturn and to be in a ready position as our country and the world return to the skies.”

Source: American

Leave a Reply

Your email address will not be published. Required fields are marked *