Southwest Airlines to apply for stimulus grants
Apr 2, 2020, 9:31 pm
#1
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Southwest Airlines to apply for stimulus grants
Southwest Airlines to apply for stimulus grants
Dallas-based Southwest Airlines will apply for its share of $25 billion in industry grants that will require carriers to avoid layoffs and furloughs for six months.
CEO Gary Kelly made the announcement in a video message Thursday morning, also announcing that the company had secured $2.3 billion in loans to help it through the lean months ahead.
“We still don’t know the severity of the situation,” Kelly said. “We don’t know how long it will last, so we intend to apply for our portion of the government grants.”
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The grants are earmarked specifically for employee salaries and benefits. The stimulus law provides $58 billion total in loans and grants to airlines, including about $8 billion for cargo carriers and contractors.
“The grants will also help provide much-needed cash flow to cover a significant portion of our salaries, wages and benefits for our people through Sept. 30,” Kelly said. "And of course that helps us commit to job security for the next six months, and as always, that is my number one priority. "
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Southwest also said it was taking $2.3 billion out of a credit line through JPMorgan Chase. That adds to the $6 billion cash balance that the company said it was holding in March.
CEO Gary Kelly made the announcement in a video message Thursday morning, also announcing that the company had secured $2.3 billion in loans to help it through the lean months ahead.
“We still don’t know the severity of the situation,” Kelly said. “We don’t know how long it will last, so we intend to apply for our portion of the government grants.”
...
The grants are earmarked specifically for employee salaries and benefits. The stimulus law provides $58 billion total in loans and grants to airlines, including about $8 billion for cargo carriers and contractors.
“The grants will also help provide much-needed cash flow to cover a significant portion of our salaries, wages and benefits for our people through Sept. 30,” Kelly said. "And of course that helps us commit to job security for the next six months, and as always, that is my number one priority. "
...
Southwest also said it was taking $2.3 billion out of a credit line through JPMorgan Chase. That adds to the $6 billion cash balance that the company said it was holding in March.
Apr 2, 2020, 10:59 pm
#3
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If you meant government loans, it's not stated whether Southwest will apply for those. I do not know, but I suspect they have some stipulations, which may be why private sector loans (combined with free government money) seem more attractive.
Apr 3, 2020, 3:10 am
#4
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Another guess without knowing all the facts, but...
Applying for loans and/or grants will surely have some sort of "stipulations". And, whatever rules exist today will change tomorrow.
BUT - applying and actually ACCEPTING any money are two different things. They can apply and decide not to take money later if that makes more sense.
Applying for loans and/or grants will surely have some sort of "stipulations". And, whatever rules exist today will change tomorrow.
BUT - applying and actually ACCEPTING any money are two different things. They can apply and decide not to take money later if that makes more sense.