World News

U.S. Treasury wants major airlines to repay part of grants, give up warrants: sources

WASHINGTON (Reuters) – 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.

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.

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

Treasury did not immediately comment.

(Reporting by David Shepardson and Tracy Rucinski; Editing by Sandra Maler)

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