Airlines must suggest possible U.S. compensation for grants -Treasury

FILE PHOTO: Planes are seen parked at gates at San Francisco International Airport, as coronavirus disease (COVID-19) disruption continues its spread across the global industry, in San Francisco, California, U.S., March 17, 2020. REUTERS/Shannon Stapleton

WASHINGTON (Reuters) – The U.S. Treasury Department issued guidelines on Monday to airlines and airport contractors as it prepares to quickly hand out $32 billion in cash assistance.

Airlines and contractors must “must identify financial instruments” that would “provide appropriate compensation,” Treasury said, adding that it could include “warrants, options, preferred stock, debt securities, notes, or other financial instruments issued by the applicant.”

The department told applicants to apply by April 3 at 5 p.m. to receive funds as soon as possible. Congress approved legislation last week authorizing $25 billion for passenger airlines, $4 billion for cargo carriers and $3 billion in cash for airport contractors like caterers and airplane cleaners.

Reporting by David Shepardson and Tracy Rucinski

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