US Airlines Request $50B Bailout Over Coronavirus
As we’ve seen in past recessions and pandemics, companies are now seeking federal financial aid; beginning with US airlines requesting a $50 billion bailout over the coronavirus.
The aid package seeks up to $25 billion grants for passenger air carriers, and $4 billion grants for cargo carriers, and the same amount for loans or loan guarantees. This would be the first broad bailout since the wake of the Sept. 11, 2001 attacks.
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The Airlines for America group stated, “US carriers are in need of immediate assistance as the current economic environment is simply not sustainable. This is compounded by the fact that the crisis does not appear to have an end in sight.”
In addition to airlines in the US, three of the biggest global airline alliances, oneworld, SkyTeam and Star Alliance, which represents more than 58 of the world’s leading carriers, also urged global governments to “evaluate all possible means” to assist the industry.
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Furthermore, President Donald Trump has addressed the concerns of the airlines, which employs more than 700,000 people directly.
Though they’ve yet to provide details on what the aid would entail, Trump stated on Monday (Mar 16), “We’re going to back the airlines 100% – it’s not their fault. We’ll be backstopping the airlines and helping them very much.”