The U.S. Treasury Department said on Tuesday that major passenger airlines have agreed in principle to a $25 billion payroll support package meant to help airlines weather the economic impact of the coronavirus on travel demand.
“We look forward to working with the airlines to finalize the necessary agreements and disburse funds as quickly as possible,” Treasury said in a statement.
Based on wages and benefits paid in the second and third quarters of 2019, American and United were each eligible for about $6 billion, Delta about $5.6 billion, Southwest about $4 billion, and JetBlue and Alaska roughly $1.2 billion each. The statute gave Treasury the authority to demand compensation for the grants, but did not require it. According to the terms, companies receiving funds cannot lay off employees before Sept. 30 or change collective bargaining agreements.
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