ANNOUNCEMENT 29 Sep 2020

The U.S. Treasury agreed to make a loan of up to USD 1.14 billion to JetBlue Airways Corporation pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES).

 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The U.S. Department of the Treasury, COVID-19 Economic Relief, “Loans to Air Carriers, Eligible Businesses, and National Security Businesses”. Available at: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-industry/loans-to-air-carriers-eligible-businesses-and-national-security-businesses

The U.S. Department of the Treasury, COVID-19 Economic Relief, JetBlue Airways Corporation Transaction Summary. Available at: https://home.treasury.gov/system/files/136/JetBlue-Airways-Transaction-Summary.pdf

Inception date: 29 Sep 2020 | Removal date: open ended

State loan

On 29 September 2020, the U.S. Department of the Treasury agreed to extend a loan to the air carrier JetBlue Airways Corporation to provide liquidity to the company related to the losses incurred as a result of the Coronavirus pandemic. Within the scope of the loan agreement, JetBlue Airways Corporation will receive up to USD 1.14 billion loan from the U.S. Treasury. The agreement includes some commitments by the company to comply with certain restrictions on employee compensation, stock repurchases, dividends and reductions in employment levels.

The loan agreement has been made as part of the government’s USD 25 billion aid package for airline companies, repair station operators and ticket agents under the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The loan has an interest rate equal to LIBOR plus 2.75% and matures on 29 September 2025. The loan is secured by the Company’s TrueBlue loyalty program, certain aircraft, and engines.

On 3 November 2020, the U.S. Treasury approved a second loan (see related state act).

 

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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