MAJOR AIRLINES INE UP TO SPLIT $25 BILLION IN PAYROLL AID

The Treasury Department said this week that the nation’s major airlines have tentatively agreed to terms for $25 billion in federal aid to pay workers and keep them employed through September.

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The assistance will include a mix of cash and loans, with the government getting warrants that can be converted into small ownership stakes in the leading airlines.

The airlines did not want to give up equity, but Treasury demanded compensation for taxpayers. The airlines have little leverage — their business has collapsed as the COVID-19 pandemic reduces air travel to a trickle and they face mass layoffs without the federal aid.

The nation’s six biggest airlines — Delta, American, United, Southwest, Alaska, and JetBlue — along with four smaller carriers have reached agreements in principle, and the Treasury Department said talks were continuing with others.

Treasury Secretary Steven Mnuchin said the department would work with the airlines to finalize deals “and disburse funds as quickly as possible.”