Major US airlines were urging Treasury officials and the federal government's outside advisers on Saturday to scrap or revise a proposal that ...
WASHINGTON/CHICAGO: Major US airlines were urging Treasury officials and the federal government's outside advisers on Saturday to scrap or revise a proposal that would make part of the US$25 billion earmarked by Congress to help keep workers on the payroll repayable in the form of low-cost loans.
Airlines, in calls with US Treasury officials and the government's outside advisers, were making the case that Treasury should not require them to repay a big chunk of grants, in part because the US$25 billion is not sufficient to cover the full amount of payroll costs submitted. Under the terms laid out in the statute, companies receiving funds cannot lay off employees before Sep 30 or change collective bargaining agreements. Mnuchin has authority to demand compensation for the grants but is not required to do so.Sara Nelson, president of the Association of Flight Attendants union, wrote on Twitter Saturday that if Treasury insists on airlines repaying US$7 billion in grants,"job cuts will happen now AND longer term cuts will come in October.
Some airlines were seeking other changes in the terms including ensuring grant funds are paid as a lump sum rather than on a monthly basis.
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