WASHINGTON | The responsible democrats in Congress called Sunday for the administration to Trump speed up the bailout of the airlines in the face of the Covid-19, to avoid layoffs, according to the New York Times.
“We urge you to conclude quickly and fairly, and agreements of direct aid to wages “, ask for the responsible democrats in a letter Sunday to Treasury secretary Steven Mnuchin and cited by the daily.
“Aid must not be accompanied by unreasonable conditions that would lead an employer to choose the bankruptcy” rather than keep its employees alert even Nancy Pelosi, chair, democratic party of the House of representatives, and Chuck Schumer, leader of the minority democrat in the Senate, in this letter.
They “recognize the need […] to protect the taxpayers’ money used to bail out the industries, but emphasize that “the directors must ensure that businesses undertake to protect the workers,” explains the New York Times.
The airlines have to keep their workforce until the end of the month of September if they accept financial aid, says the New York Times.
These companies have been particularly affected by the crisis linked to the pandemic of the Covid-19, constraints to suspend a majority of their activity in a global effort to stop the spread of the virus.
Most transatlantic flights by american companies, have been suspended, and a large part of their domestic routes are stopped.
A special provision is planned for this area in the huge plan of economic aid of 2 200 billion, adopted by the Congress and then ratified by Donald Trump on march 27.
This $ 25 billion that should be allocated to the airlines, $ 4 billion to air cargo carriers, and $ 3 billion to the contractors to pay the wages. In addition, it is anticipated an additional 25 billion dollars in loans and loan guarantees to the airlines and $ 4 billion in air cargo.
In exchange, the federal government could take equity stakes in these companies, in the form of ” warrants “, financial securities giving their holder the right to buy or sell an asset at a certain price until a specified date when they are issued. These securities may be converted into shares.