US Treasury, airlines reach deal on financial aid

US Treasury Secretary Steven Mnuchin and major US airlines on Tuesday reached an agreement on aid amid the coronavirus pandemic, in a bid to pay workers and avoid bankruptcies in an industry that employs 750,000 people.

The Treasury came to terms with 10 airlines, including the four largest -- Delta Air Lines, Americans Airlines, United Airlines and Southwest Airlines.

Some were initially hesitant to accept the money for fear of nationalization despite the damage done by the virus, which has brought air travel to a standstill.

"We look forward to working with the airlines to finalize the necessary agreements and disburse funds as quickly as possible," Mnuchin said in a statement.

Congress last month approved a USD 2.2 trillion stimulus plan to rescue the world's largest economy, which includes USD 25 billion for airlines to continue paying employees' salaries and benefits until September 30.

While details of the agreement were not disclosed, a source close to the negotiations said the US government would become a minority shareholder in the airlines.

In his statement, Mnuchin said the deal "will support American workers and help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers."