US government holding firm on airline aid plan

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US government holding firm on airline aid plan
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US government holding firm on airline aid plan, could end up with 3per cent of American Airlines

REUTERS: The US Treasury Department is holding firm on the terms of a US$25 billion offer for government aid to airlines to help them meet payroll during the coronavirus downturn, officials said on Monday , and the plan could give the government more than 3 per cent of American Airlines Group Inc .

One airline official said the warrant price had been locked before Monday, when airline shares fell sharply. The potential equity dilution is lower than many analysts had feared. Still, airline shares fell on Monday on disappointment that a portion of a US$25 billion payroll support package would have to be repaid.

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