- The United States Government has announced a rescue agreement with the main airlines of the country to alleviate the losses due to the coronavirus pandemic.
- The aid program would reach 25,000 million dollars.
- Companies in the sector have been warning for weeks that their cash position will not allow them to survive more than two months, and this Tuesday they announced that half of their business will disappear due to the coronavirus crisis.
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The Government of the United States has announced on Tuesday a rescue agreement with the main passenger airlines of the country to alleviate the losses derived from the economic situation generated by the coronavirus pandemic.
The aid program would reach 25,000 million dollars (more than 22,759 million euros) and would be aimed at preserving employment in the sector.
For now, already a dozen of the main airlines in the country have shown their willingness to take advantage of this program for the payment of payrolls, according to the Treasury Department.
These are Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines and Southwest Airlines.
At the same time, the Trump government continues in talks with other airlines to join this package.
The announcement comes shortly after, this Tuesday, the International Air Transport Association (IATA) has warned that half of its business will disappear due to the coronavirus crisis: it anticipates that the income of the companies in the sector will fall 55% this year compared to 2019, while traffic will drop 48%.
Companies in the sector have been warning for weeks that their cash position will not allow them to survive more than two months, on average, without financial help from governments, and that their bankruptcy would have a huge impact on the tourism sector, which is the main economic engine of Spain.
For now, large airlines around the world are already submitting separate ERTEs for the coronavirus while pointing to extraordinary extraordinary losses in their accounts and trying not to reimburse the tickets of the canceled flights to travelers, something that would also have a significant impact on their boxes and that would add to the rest of the costs that they have to continue assuming even if their planes do not fly.
Read more: Why airlines have so little operating margin … and the current crisis poses a serious threat to their survival
Returning to US aid, the companies that benefit from them must reimburse 30% of the money they receive and keep 90% of the workforce they had as of March 24, and the Government must receive “guarantees” to In exchange for your aid –financial products that can be converted into shares–, you have collected Europa Press.
Read more: Neither 9/11 nor the 2008 financial crisis: why the coronavirus is the greatest risk to the future of aviation, according to world airline employers
The measure is part of the economic stimulus program approved by the White House, the largest in the history of the United States, with a scope of 2 trillion dollars (1.84 trillion euros), to face the pandemic of Covid-19, which includes aid for SMEs, as well as for sectors in distress such as airlines, an expansion of unemployment coverage and the direct payment of cash to American families.