WASHINGTON - The US Senate passed a US$58 billion rescue package bill for US airlines affected by the coronavirus (Covid-19) pandemic on Wednesday (25/3).
As reported by Reuters, part of the aid is used as grants to pay around 750,000 airline staff wages. In addition, airlines receiving the aid are not allowed to lay off employees before September 30, 2020.
The rescue package bill contains restrictions on stock buybacks, dividends, and executive pay. It also enables the US government to take equity, warrants, or other compensation as part of the package.
The US House of Representatives is expected to back the bill on Friday (27/3), while President Donald Trump has promised to sign it.
The International Air Transport Association (IATA) estimates that the Covid-19 pandemic will cost the global aviation industry US$252 billion in lost revenues. It has urged countries, particularly G20 members, to provide financial support for major airlines.
“The spread of the Covid-19 pandemic around the globe and the resulting government-mandated border closings and travel restrictions have led to the destruction of air travel demand,” said IATA CEO Alexandre de Juniac. (MS)