The US Department of Treasury has published an updated list of payments allocated to American carriers under the Payroll Support Program (PSP), distributing the bulk of its USD25 billion budget for passenger airlines.
According to the list last updated on May 13, 2020, the Treasury allocated support to 202 passenger carriers. As announced in late April 20, the majority of the funds will be earmarked for the largest carriers, with American Airlines (AA, Dallas/Fort Worth) receiving up to USD5.8 billion, Delta Air Lines (DL, Atlanta Hartsfield Jackson) - USD5.4 billion, United Airlines (UA, Chicago O'Hare) - USD5 billion, and Southwest Airlines (WN, Dallas Love Field) - USD3.3 billion.
Airlines set to receive over USD100 million under the PSP will see the cash split between grants (70%) and loans (30%). Also, the US Treasury will assume warrants granting it the right to shares in the recipient airline (amounting to a single-digit shareholding if exercised) or cash payments.
The following airlines are also set to cross the USD100 million threshold:
- Alaska Airlines (AS, Seattle Tacoma International) - USD999.2 million,
- JetBlue Airways (B6, New York JFK) - USD935.8 million,
- SkyWest Airlines (OO, Salt Lake City) - USD438 million,
- Spirit Airlines (NK, Fort Lauderdale International) - USD334.7 million,
- Hawaiian Airlines (HA, Honolulu) - USD292.5 million,
- Republic Airways (YX, Indianapolis International) - USD206 million,
- Frontier Airlines (F9, Denver International) - USD204.9 million,
- Allegiant Air (G4, Las Vegas Harry Reid) - USD171.9 million, and
- ExpressJet Airlines (Atlanta Hartsfield Jackson) - USD109.9 million.
The smaller recipients of aid will receive the whole sum as a grant, and the Treasury will not assume warrants.
The Treasury has so far only allocated a small part of its USD5 billion budget for cargo carriers. Among the 12 cargo specialists which have already reached an agreement with the government are Amerijet International (M6, Miami International) (set to receive USD30.3 million), National Airlines (N8, Orlando Sanford) (USD15.8 million), and ten other airlines which would receive under USD3 million each.
As the threshold for cargo carriers to receive loans and provide warrants has been set at USD50 million, so far none of the cargo recipients had to do so.
Among the 202 passenger airlines awarded PSP support is Delux Public Charters, d/b/a JetSuiteX Air (Rapid City Regional), which will receive USD9 million. The airline is a sister company to Superior Air Charter (SAC) LLC, the parent of JetSuite (Santa Ana, CA), which filed for Chapter 11 protection in late April 2020.
Funds received under the PSP must exclusively be used for the continuation of payment of employee wages, salaries, and benefits.
