ANNOUNCEMENT 02 Jun 2020

This support to the aviation sector stems from the Coronavirus Aid, Relief and Economic Security Act (CARES Act) that President Trump signed into law on March 27, 2020.

 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 02 Jun 2020 | Removal date: open ended

Financial grant

On June 2, 2020 the Department of the Treasury reached an agreement with Haeco Airframe Services LLC under which the aviation contractor received $35,993,499 in support during the Covid-19 pandemic. Like comparable arrangements reached with other airlines and related firms, the agreement set the value of the payroll grant to the company and provided that the funds must be used exclusively for the continuation of payment of employee wages, salaries, and benefits.

This and other agreements in the aviation sector stem from the Coronavirus Aid, Relief and Economic Security Act (CARES Act) that President Trump signed into law on March 27, 2020. Division A, Title IV, Subtitle B of this law created a Payroll Support Program for the aviation industry, authorizing a total of up to $25 billion for passenger air carriers; $4 billion for cargo air carriers; and $3 billion for certain contractors. The amount to be received by each air carrier or contractor is based on its payroll expenses from April, 2019 through September, 2019.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A