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Airlines wait as Treasury applies strings to payroll aid

3 months 4 weeks 2 days ago Monday, April 13 2020 Apr 13, 2020 April 13, 2020 5:19 PM April 13, 2020 in News - AP Texas Headlines

By DAVID KOENIG
AP Airlines Writer

The Treasury Department has missed a deadline for issuing payroll grants to airlines and continues to negotiate with carriers over terms of the grants designed to avoid massive layoffs. The chief holdup is Treasury’s insistence that some of the $25 billion in payroll assistance be in the form of loans, not cash. The airlines thought they had a deal: Congress agreed to give passenger airlines $25 billion in cash grants to cover payroll costs for six months. Now airlines and their unions are pressing Treasury Secretary Steven Mnuchin to start distributing the grants, which were due to be paid out beginning April 6.

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