Treasury wants major airlines to repay part of grants, give up warrants

Secretary Steven Mnuchin said he wants airlines to repay some of $25B in cash grants

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U.S. Treasury Secretary Steven Mnuchin told major airlines on Friday he wants them to repay some of the $25 billion in cash grants the U.S. Congress approved last month to cover payroll costs, three industry officials briefed on the matter told Reuters.

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Mnuchin spoke with the chief executives of major airlines in separate calls on Friday and told them the department was offering 70% of the grants that would not need to be repaid, while airlines would be required to offer warrants and repay low-interest loans in exchange for the remaining 30%, the sources said.

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Regional carriers receiving $100 million or less will not need to grant warrants to the government.

Treasury did not immediately comment.

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