Thursday the Treasury Department that it had signed letters of intent for new loans to American, Spirit Airlines, Frontier Airlines, Hawaiian Airlines and SkyWest Airlines.
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American Airlines along with four smaller carriers have reached agreement with the government for billions more in federal loans, due to pandemic a sign of the industry’s desperate fight to survive a downturn in air travel .
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These mentioned five are the first carriers to accept loans from a separate $25 billion kitty that Congress set aside under a $2.2 billion measure to help companies suffered by the COVID19 .Although all leading all leading U.S. airlines had previously accepted a combination of grants and loans to help cover payroll cost sept 30.
As per the sources, American Airlines said it signed a term sheet with Treasury for a $4.75 billion loan, which would be in addition to $5.8 billion that Treasury has already agreed to extend to American.
American CEO Doug Parker and President Robert Isom said in a note. “We have to complete some legal work to reach a definitive credit agreement, but we expect to finalize that loan during the third quarter, . They said the additional loan would give American liquidity of about $15 billion.