U.S. Treasury delegates have asked airways to seek government payroll assist in providing additional detailed info on capital structure, liquidity, and loyalty programs.
Airlines’ daily money burn rates, once they expect to run out of cash and their finest estimates for projected wages and benefits between April 1 and September 30, are amongst details Treasury has requested as it evaluations applications for presidency aid, they said.
Treasury has requested information on the worth and historical cash flow of airways’ loyalty programs, in addition to an overview of all unencumbered assets resembling aircraft, engines, and spare elements.
On Friday, U.S. airlines utilized for a share of $25 billion in cash under a government relief package to help cover payroll and avoid layoffs until September 30.
Airlines had hoped the cash might arrive as soon as this week.
Under the legislation, U.S. Treasury Secretary Steven Mnuchin can demand equity, warrants or other monetary instruments to “present appropriate compensation to the federal authorities,” a condition that has triggered pushback by some airlines, unions and Democratic legislators.
Every day airlines are burning their cash reserves and looking at recent ways to save lots of costs whereas maintaining critical service even as passengers continue to plunge as people stay confined to their homes due to the new coronavirus.