The industry has seen most of all flights grounded as the pandemic rages across the world.
Losses for the industry are expect to reach $113 billion.
US Treasury Secretary Steven T Mnuchin delivered the news on the Payroll Support Program to passenger air carriers.
He said: “We welcome the news that a number of major airlines intend to participate in the Payroll Support Program.
“This is an important CARES Act program that will support American workers and help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers.”
LATEST: Italy records 3,000 new COVID-19 cases ahead of easing lockdown measures
A range of airlines from Alaska Airlines to Southwest Airlines have told the secretary that they will participate in the Payroll Support Program.
Mr Mnuchin continued: “Conversations continue with other airlines regarding their potential participation.
“Treasury is also working to review and approve applications for smaller passenger air carriers as quickly as possible and will provide further guidance for cargo carriers and contractors very soon.
“We look forward to working with the airlines to finalise the necessary agreements and disburse funds as quickly as possible.”
American Airlines released details of how they will use the government funded relief plan.
They have called for $5.8 billion from the state released funds.
He said: “The funds, which are targeted to support team member salaries and benefits, will come in two forms: a direct grant of $4.1 billion, and a low-interest rate loan of $1.7 billion.
“In addition to the $5.8 billion, American expects to separately apply for a loan from the US Treasury of approximately $4.75 billion.”
EU coronavirus plan snubbed as member states ignore Brussels’ pleas and ease lockdowns [LATEST]
Social distancing measures may stay in place until 2022 – shock figures [INSIGHT]
Trump’s top doctor warns US is not ready to lift lockdown – ‘not there yet’ [ARTICLE]
The news of the bailout follows President Donald Trump pushing to reopen the countries economy as soon as possible.
On Tuesday The White House announced a task force of Great American Economic Revival Industry Groups, comprised of hundreds of corporate executives along with faith and thought leaders.
In a statement, they said: ““These bipartisan groups of American leaders will work together with the White House to chart the path forward toward a future of unparalleled American prosperity.
“The health and wealth of America is the primary goal, and these groups will produce a more independent, self-sufficient, and resilient Nation.”
The American aviation industry has struggled amid the pandemic as flights are grounded and borders closed.
Worldwide coronavirus cases approach the 2 million mark at 1,998,111.
The US has seen 611,156 of those cases as of Wednesday morning.
The death toll for the US has reached 25,924 people.
Source: Read Full Article