Delta Air reaches deal for $5.4 billion in federal relief funding

Source: Atlanta Journal-Constitution

Atlanta-based Delta Air Lines has reached an agreement for $5.4 billion in federal relief funding.

It’s among several deals Treasury Secretary Steven Mnuchin announced Tuesday as part of $25 billion in rescue financing for passenger airlines amid plunging traffic due to the coronavirus pandemic.

The funding conditions restrict airlines from cutting workers’ pay rates or benefits or conducting involuntary furloughs through Sept. 30. They also require airlines to maintain a minimum level of flights for essential travel.

...

The $5.4 billion for Delta, the dominant airline at Hartsfield-Jackson International Airport, includes a $1.6 billion unsecured, low-interest, 10-year loan. It also calls for Delta to provide the federal government with warrants to acquire about 1% of Delta stock at $24.39 per share over five years.

The stock warrants open the door to the government owning stakes in airlines. Mnuchin said the airline funding will support workers and “help preserve the strategic importance of the airline industry while allowing appropriate compensation to the taxpayers.”

Read more: https://www.ajc.com/news/breaking-news/delta-air-reaches-deal-for-billion-federal-relief-funding/JyJEeun6gNexCxZqTQd7cJ/

---

My girlfriend works for Delta, and has had her hours reduced from 40 hours / week to 25 hours / week. She's been there 5 years as a full time, salaried employee, but her offer letter tied her salary to a 40 hour work week. It's interesting how companies can get around the rules of no pay cuts / furloughs with these types of bailouts.