WASHINGTON, April 14 (Xinhua) -- Major U.S. airlines and the Treasury Department have reached a tentative agreement over financial assistance for the industry heavily hit by the COVID-19 pandemic, the department announced Tuesday.
"We welcome the news that a number of major airlines intend to participate in the Payroll Support Program," U.S. Treasury Secretary Steven Mnuchin said in a statement, noting that the program is part of the 2.2-trillion-U.S.-dollar relief package passed by the Congress a few weeks ago.
The program would offer 25 billion dollars in direct aid to passenger airlines so that they could continue paying salaries and benefits to their employees in the next few months.
Ten airlines, including American Airlines, Delta Air Lines, and United Airlines, have told the Treasury Department that they intend to accept assistance through the program.
The program "will support American workers and help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers," Mnuchin said.
The treasury secretary said the department will continue conversations with other airlines regarding their potential participation, noting that it is also working on guidance for aid to cargo carriers and contractors.
"We look forward to working with the airlines to finalize the necessary agreements and disburse funds as quickly as possible," Mnuchin said.
At a White House briefing Tuesday afternoon, U.S. President Donald Trump said this agreement will help airlines get over "a very tough time."
Demand for air travel worldwide has plummeted over the past few months, as countries across the globe grapple with the COVID-19 outbreak, imposing restrictive measures to slow the spread of the virus.
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