These airlines have received a bailout – Business Traveller | #corporatesecurity |

As with other U.S airlines (Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines and SkyWest Airlines), Southwest Airlines has accessed funding as part of the U.S the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Southwest Airlines has said that it will receive more than $3.2 billion, consisting of more than $2.3 billion in direct payroll support and a nearly $1 billion unsecured ten-year term loan (“loan”) with low interest rates and which may be repaid at any time prior to maturity at par.

The airline said that “the loan is expected to include approximately 2.6 million warrants issued to the US Department of Treasury. The programme includes certain conditions, such as: prohibitions against involuntary furloughs and reductions in employee pay rates and benefits through September 30, 2020; the elimination of share repurchases and dividends until September 30, 2021; and limits on executive compensation until March 24, 2022.”

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