Delta bailout latest news
Here are the latest news updates on the Delta Air Lines bailout:
Latest Update: On October 26, 2020, the US Treasury Department announced that it would provide an additional $5.5 billion in funding to Delta Air Lines as part of the Payroll Support Program (PSP) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This brings the total amount of funding provided to Delta to $12.5 billion.
Background: In March 2020, Delta Air Lines received an initial $5 billion in funding from the US Treasury Department as part of the PSP to help the airline maintain its payroll and operations during the COVID-19 pandemic. The funding was provided in exchange for certain conditions, including a requirement that Delta not lay off employees or reduce their pay for a certain period.
Recent Developments:
- On October 15, 2020, Delta Air Lines announced that it would be cutting 1,900 jobs, or about 10% of its workforce, due to the ongoing pandemic and reduced demand for air travel.
- On October 22, 2020, the US Treasury Department announced that it would provide an additional $1.5 billion in funding to Delta Air Lines to help the airline maintain its payroll and operations.
- On October 26, 2020, the US Treasury Department announced that it would provide an additional $5.5 billion in funding to Delta Air Lines, bringing the total amount of funding provided to the airline to $12.5 billion.
Impact: The bailout has helped Delta Air Lines maintain its payroll and operations during the pandemic, which has had a significant impact on the airline industry. The funding has also helped the airline to avoid layoffs and reduce its debt.
Reactions: The bailout has been widely criticized by some as a form of corporate welfare, while others have argued that it is necessary to support the airline industry and maintain air travel services during the pandemic.
Sources:
- "Delta Air Lines to receive additional $5.5 billion in bailout funding" (CNN, October 26, 2020)
- "Delta Air Lines to cut 1,900 jobs due to pandemic" (USA Today, October 15, 2020)
- "Treasury Department provides additional $1.5 billion in funding to Delta Air Lines" (The Hill, October 22, 2020)
- "Delta Air Lines receives $5 billion bailout from US Treasury Department" (Forbes, March 25, 2020)