Airlines will be required to propose up-front how the federal government could retain financial stakes in their companies in exchange for a share of $61 billion in coronavirus aid designated for the industry, according to guidelines released by the Treasury Department, Bloomberg News reported. The assistance is aimed at helping U.S. carriers stay afloat and continue to pay workers, as companies struggle with a near 90 percent drop in passenger traffic because of the widening pandemic. Instructions for applying for aid were posted by the Treasury yesterday, just days after President Donald Trump signed the $2.2 trillion stimulus package into law. The legislation negotiated by Treasury Secretary Steven Mnuchin with top U.S. lawmakers includes as much as $32 billion in payments for airlines to keep employees on their payrolls. Under the guidelines, recipients must refrain from making any furloughs or layoffs before Sept. 30 of this year. The measure also offers $29 billion in loans to carriers to help fund their operations. The guidelines say that applicants should submit details of existing debt and credit lines with outstanding balances, scheduled debt service for three years and employment levels.
