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Stock impact report

Airline cash grants offered by federal government could force carriers to take on more debt [CNBC]

Delta Air Lines, Inc. (DAL) 
Last delta air lines, inc. earnings: 4/22 07:00 am Check Earnings Report
US:NYSE Investor Relations: ir.delta.com
Company Research Source: CNBC
Two weeks after approved a $50 Billion bailout of airlinesThe structure of the offers has caught U.S. airlines by surprise. "This is not what approved," said one industry executive who asked not to be identified given the ongoing discussions between airlines and the Treasury Department. "The aid was supposed to be $25 Billion in cash grants and $25 Billion in loans."The cash grant offers extended to the largest airlines on Friday also come with several important provisions including no mass layoffs of airline employees through September 30th, a stipulation airlines expected as was finalizing $50 billion in aid. As a result, all carriers have committed to not laying off employees for the next six months.Another stipulation of the grant offerscalls for the federal government to receive stock warrantsAdding a debt component to the grant offers comes at a time when airlines have taken out loans and opened credit lines for billions of dollars. As a result, the credit ratings for many air Show less Read more
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