ANNOUNCEMENT 26 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
On June 26, 2020 the Department of the Treasury reached an agreement with AGI-CFI Holdings Inc. under which the aviation contractor received $37,500,000 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. No condition was imposed that this firm cease operations, unlike wage support afforded by other governments during COVID-19-related "lockdowns."
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.