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

[Calista241]

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/

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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.

[Marrah_Goodman]

1. My bf has been with Delta for 40 years

He's been out recovering from a surgery but goes back next week. He has put in for a voluntary furlough due to age and pre-existing conditions. I think with the bailout your girlfriends hours will go back up.

[Calista241]

2. She's considering the 1 month voluntary furlough also

she can afford to pay her bills with the regular state unemployment benefit when combined with the $600 federal boost to unemployment.

[Marrah_Goodman]

3. It's a good plan.

He is putting in for the 12 month furlough and will probably take a retirement package if they offer during that period. All in all, Delta has been good to him over the years.

[RT Atlanta]

4. Delta employs a LOT of people in/around Atlanta

So in the regard that I generally hold them in good esteem, I am hopeful they will remain afloat (remember, they went through bk re-org less than 20 years back) and can keep their team members employed. I personally know good people that work over there.

[bucolic_frolic]

5. It's a lot of money

but an essential industry. Lots of goods move via air. If you lose transportation things will really come to a halt. But many people will fine teleconferencing convenient, less wear and tear, and companies will find it very very cheap compared to travel.

[msongs]

6. delta gets a wad, post office gets a death sentence. maybe we have resources for BOTH nt

[Cha]

12. That's the First thing I think of when I see the

bail-outs.

It's great for them.. but we need the Post Office too.. to Mail the Stuff that Delta etc etc flies around.

[C_U_L8R]

7. Mandate funding for W.H.O. first.

And the USPS too. Priorities.

[They_Live]

8. Agree. Good idea.

I wonder if Delta Air pays any tax?

[Igel]

9. Google is your friend.

https://www.stock-analysis-on.net/NYSE/Company/Delta-Air-Lines-Inc/Analysis/Income-Taxes

They paid state income tax, they paid no federal income tax in 2019 because that's what the tax code said.

If you play the same game that Piketty and others play with personal taxes--track down all the other taxes and fees to maximize the taxes paid--it might be a different story. If you flip the script and try to find every way that taxes they did pay really don't count, you'll find they paid less. You pick your definitions for the situation to produce your outcome, you get your outcome.

[Nacht Owl]

10. This is Great News

We have to help mom-and-pop businesses like Delta succeed.

[Polybius]

11. Perhaps they will figure out a way to dramatically cut costs of tickets

There have been commercial airlines since long before the 50's. A round trip ticket from NY to London should cost no more than $200. I don't feel sorry for them, only for the workers.

[yaesu]

13. Anything to boost the stock market plus tRump must sign every Delta jet in 5' letters

or not