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Details on Airline Bailouts in Stimulus Bill

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Details on Airline Bailouts in Stimulus Bill

Old 03-26-2020, 01:19 PM
  #11  
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(b) DEPARTMENT OF TRANSPORTATION AUTHORITY TO CONDITION ASSISTANCE ON CONTINUATION OF SERVICE.—
(1) IN GENERAL.—The Secretary of Transportation is authorized to require, to the extent reasonable and practicable, an air carrier provided financial assistance under this subtitle to maintain scheduled air transportation service, as the Secretary of Transportation deems necessary, to ensure services to any point served by that carrier before March 1,
13 2020.
(2) REQUIRED CONSIDERATIONS.—When considering whether to exercise the authority provided by this section, the Secretary of Transportation shall take into consideration the air transportation needs of small and remote communities and the need to maintain well-functioning health care supply chains, including medical devices and supplies, and pharmaceutical supply chains.
(3) SUNSET.—The authority provided under
this subsection shall terminate on March 1, 2022, and any requirements issued by the Secretary of Transportation under this subsection shall cease to
apply after that date.

SEC. 4115. PROTECTION OF COLLECTIVE BARGAINING AGREEMENT.
(a) IN GENERAL.—Neither the Secretary, nor any other actor, department, or agency of the Federal Govern- ment, shall condition the issuance of financial assistance under this subtitle on an air carrier’s or contractor’s im- plementation of measures to enter into negotiations with the certified bargaining representative of a craft or class of employees of the air carrier or contractor under the Railway Labor Act (45 U.S.C. 151 et seq.) or the National Labor Relations Act (29 U.S.C. 151 et seq.), regarding pay or other terms and conditions of employment.
(b) PERIOD OF EFFECT.—With respect to an air car- rier or contractor to which financial assistance is provided under this subtitle, this section shall be in effect with re- spect to the air carrier or contractor beginning on the date on which the air carrier or contractor is first issued such financial assistance and ending on September 30, 2020.

SEC. 4116. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION.
(a) IN GENERAL.—The Secretary may only provide financial assistance under this subtitle to an air carrier or contractor after such carrier or contractor enters into an agreement with the Secretary which provides that, during the 2-year period beginning March 24, 2020, and ending March 24, 2022, no officer or employee of the air carrier or contractor whose total compensation exceeded $425,000 in calendar year 2019 (other than an employee whose compensation is determined through an existing collective bargaining agreement entered into prior to enactment of this Act)—
(1) will receive from the air carrier or contractor total compensation which exceeds, during
any 12 consecutive months of such 2-year period, the total compensation received by the officer or employee from the air carrier or contractor in calendar year 2019;
(2) will receive from the air carrier or contractor severance pay or other benefits upon termination of employment with the air carrier or contractor which exceeds twice the maximum total compensation received by the officer or employee from the air carrier or contractor in calendar year 2019;
and
(3) no officer or employee of the eligible business whose total compensation exceeded $3,000,000 in calendar year 2019 may receive during any 12 consecutive months of such period total compensation in excess of the sum of—
(A) $3,000,000; and
(B) 50 percent of the excess over $3,000,000 of the total compensation received by the officer or employee from the eligible business in calendar year 2019.
(b) TOTAL COMPENSATION DEFINED.—In this sec- tion, the term ‘‘total compensation’’ includes salary, bo- nuses, awards of stock, and other financial benefits pro- vided by an air carrier or contractor to an officer or em- ployee of the air carrier or contractor.

{To Be Continued}
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Old 03-26-2020, 01:20 PM
  #12  
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SEC. 4117. TAX PAYER PROTECTION.
The Secretary may receive warrants, options, pre- ferred stock, debt securities, notes, or other financial in- struments issued by recipients of financial assistance under this subtitle which, in the sole determination of the Secretary, provide appropriate compensation to the Fed- eral Government for the provision of the financial assistance.

Last edited by DrJekyll MrHyde; 03-26-2020 at 01:44 PM.
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Old 03-26-2020, 01:38 PM
  #13  
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{Skipping back to Sec 4003 regarding loans}

SEC. 4003. EMERGENCY RELIEF AND TAXPAYER PROTEC- TIONS.
(a) IN GENERAL.—Notwithstanding any other provi- sion of law, to provide liquidity to eligible businesses, States, and municipalities related to losses incurred as a result of coronavirus, the Secretary is authorized to make loans, loan guarantees, and other investments in support of eligible businesses, States, and municipalities that do not, in the aggregate, exceed $500,000,000,000 and pro- vide the subsidy amounts necessary for such loans, loan guarantees, and other investments in accordance with the provisions of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).

(b) LOANS, LOAN GUARANTEES, AND OTHER INVESTMENTS.—
Loans, loan guarantees, and other investments made pursuant to subsection (a) shall be made
available as follows:
(1) Not more than $25,000,000,000 shall be
available to make loans and loan guarantees for passenger air carriers, eligible businesses that are certified under part 145 of title 14, Code of Federal Regulations, and approved to perform inspection, repair, replace, or overhaul services, and ticket agents(as defined in section 40102 of title 49, United
12 States Code).

(2) Not more than $4,000,000,000 shall be
available to make loans and loan guarantees for cargo air carriers.
(3) Not more than $17,000,000,000 shall be
available to make loans and loan guarantees for businesses critical to maintaining national security.
(4) Not more than the sum of $454,000,000,000 and any amounts available under paragraphs (1), (2), and (3) that are not used as provided under those paragraphs shall be available to make loans and loan guarantees to, and other investments in, programs or facilities established by the Board of Governors of the Federal Reserve System for the purpose of providing liquidity to the financial system that supports lending to eligible businesses, States, or municipalities by—
(A) purchasing obligations or other interests directly from issuers of such obligations or
other interests;
(B) purchasing obligations or other interests in secondary markets or otherwise; or
(C) making loans, including loans or other
advances secured by collateral.
(c) TERMS AND CONDITIONS.—
(1) IN GENERAL.—
(A) FORMS; TERMS AND CONDITIONS.—A
loan, loan guarantee, or other investment by the Secretary shall be made under this section in such form and on such terms and conditions
and contain such covenants, representations,
warranties, and requirements (including requirements for audits) as the Secretary determines appropriate. Any loans made by the Secretary under this section shall be at a rate determined by the Secretary based on the risk
and the current average yield on outstanding
marketable obligations of the United States of
comparable maturity.
{Skipping over Procedures section}
(2) LOANS AND LOAN GUARANTEES .—The Sec- retary may enter into agreements to make loans or loan guarantees to 1 or more eligible businesses under paragraphs (1), (2) and (3) of subsection (b) if the Secretary determines that, in the Secretary’s discretion—
(A) the applicant is an eligible business for which credit is not reasonably available at the time of the transaction;
(B) the intended obligation by the applicant is prudently incurred;
(C) the loan or loan guarantee is sufficiently secured or is made at a rate that reflects the risk of the loan or loan guarantee; and
(ii) is to the extent practicable, not
less than an interest rate based on market
conditions for comparable obligations prevalent prior to the outbreak of the coronavirus disease 2019 (COVID–19);
(D) the duration of the loan or loan guarantee is as short as practicable and in any case
not longer than 5 years;
(E) the agreement provides that, until the
date 12 months after the date the loan or loan
guarantee is no longer outstanding, neither the
eligible business nor any affiliate of the eligible
business may purchase an equity security that
is listed on a national securities exchange of the eligible business or any parent company of the eligible business, except to the extent required under a contractual obligation in effect as of the date of enactment of this Act;
(F) the agreement provides that, until the
date 12 months after the date the loan or loan
guarantee is no longer outstanding, the eligible
business shall not pay dividends or make other
capital distributions with respect to the common
stock of the eligible business;

(G) the agreement provides that, until Sep-
tember 30, 2020, the eligible business shall maintain its employment levels as of March 24, 2020, to the extent practicable, and in any case shall not reduce its employment levels by more than 10 percent from the levels on such date;
(
H) the agreement includes a certification by the eligible business that it is created or or- ganized in the United States or under the laws of the United States and has significant oper- ations in and a majority of its employees based in the United States; and
(I) for purposes of a loan or loan guar- antee under paragraphs (1), (2), and (3) of subsection (b), the eligible business must have incurred or is expected to incur covered losses such that the continued operations of the busi- ness are jeopardized, as determined by the Secretary.

{To Be Continued}
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Old 03-26-2020, 01:43 PM
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{Restrictions on Loans}

(ii) RESTRICTIONS.—The Secretary
may make a loan, loan guarantee, or other
investment under subsection (b)(4) as part
of a program or facility that provides direct loans only if the applicable eligible
businesses agree—
(I) until the date 12 months
after the date on which the direct loan
is no longer outstanding, not to repur-
chase an equity security that is listed
on a national securities exchange of
the eligible business or any parent
company of the eligible business while
the direct loan is outstanding, except
to the extent required under a contractual obligation that is in effect as of the date of enactment of this Act;
(II) until the date 12 months after the date on which the direct loan is no longer outstanding, not to pay dividends or make other capital distributions with respect to the common
stock of the eligible business; and
(III) to comply with the limitations on compensation set forth in section 4004.

{Done}
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Old 03-26-2020, 01:57 PM
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Looks like we can stop talking concessions as well. Starting now please.
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Old 03-26-2020, 02:01 PM
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It would take some serious balls to ask us all to write our elected officials for help, then turn around and deny that help because it requires them to share equity.

And yes, concessions are off the table.
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Old 03-26-2020, 02:53 PM
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Originally Posted by PulledBreaker View Post
It would take some serious balls to ask us all to write our elected officials for help, then turn around and deny that help because it requires them to share equity.

And yes, concessions are off the table.
Well, these boys got balls.

Remember when they said they couldn't even think about negotiating a pay raise for us per LOA67 because of Brexit?
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Old 03-26-2020, 03:31 PM
  #18  
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The Loans come with obligations for collateral as well: Paragraph B would apply to us (not a publicly traded company).

Page 525

FINANCIAL PROTECTION OF GOVERNMENT.—
(1) WARRANT OR SENIOR DEBT INSTRUMENT.—
The Secretary may not issue a loan to, or a loan guarantee for, an eligible business under paragraph (1), (2), or (3) of subsection (b) unless—
(A) (i) the eligible business has issued secu- rities that are traded on a national securities exchange; and
(ii) the Secretary receives a warrant or equity interest in the eligible business; or


(B) in the case of any eligible business other than an eligible business described in sub- paragraph (A), the Secretary receives, in the discretion of the Secretary—
(i) a warrant or equity interest in the eligible business; or
(ii) a senior debt instrument issued by the eligible business.
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Old 03-26-2020, 05:30 PM
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Do we have a simple version, Pilot friendly, for what airline is getting what ?
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Old 03-26-2020, 06:12 PM
  #20  
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Originally Posted by DrJekyll MrHyde View Post
Some light reading for you guys.



SEC. 4112. PANDEMIC RELIEF FOR AVIATION WORKERS.



(a) FINANCIAL ASSISTANCE FOR EMPLOYEE WAGES, SALARIES, AND BENEFITS.—Notwithstanding any other provision of law, to preserve aviation jobs and compensate air carrier industry workers, the Secretary shall provide financial assistance that shall exclusively be used for the continuation of payment of employee wages, salaries, and benefits to—

(1) passenger air carriers, in an aggregate

amount up to $25,000,000,000;

(2) cargo air carriers, in the aggregate amount

up to $4,000,000,000; and

(3) contractors, in an aggregate amount up to

$3,000,000,000.



(b) ADMINISTRATIVE EXPENSES.—Notwithstanding any other provision of law, the Secretary, may use $100,000,000 of the funds made available under section 4120(a) for costs and administrative expenses associated with providing financial assistance under this subtitle.



SEC. 4113. PROCEDURES FOR PROVIDING PAYROLL SUP-

PORT.



(a) AWARDABLE AMOUNTS.—The Secretary shall provide financial assistance under this subtitle—

(1) to an air carrier in an amount equal to the salaries and benefits reported by the air carrier to the Department of Transportation pursuant to part 241 of title 14, Code of Federal Regulations, for the period from April 1, 2019, through September 30, 2019; and

(2) to an air carrier that does not transmit re- ports under such part 241, in an amount that such air carrier certifies, using sworn financial statements or other appropriate data, as the amount of wages,salaries, benefits, and other compensation that such air carrier paid the employees of such air carrier during the period from April 1, 2019, through September 30, 2019; and

(3) to a contractor, in an amount that the contractor certifies, using sworn financial statements or other appropriate data, as the amount of wages, salaries, benefits, and other compensation that such contractor paid the employees of such contractor during the period from April 1, 2019, through September 30, 2019.



[Skipping Forward]



SEC. 4114. REQUIRED ASSURANCES.

5 (a) IN GENERAL.—To be eligible for financial assistance under this subtitle, an air carrier or contractor shall enter into an agreement with the Secretary, or otherwise certify in such form and manner as the Secretary shall prescribe, that the air carrier or contractor shall—

(1) refrain from conducting involuntary furloughs or reducing pay rates and benefits until September 30, 2020;

(2) through September 30, 2021, ensure that neither the air carrier or contractor nor any affiliate of the air carrier or contractor may, in any transaction, purchase an equity security of the air carrier or contractor or the parent company of the air carrier or contractor that is listed on a national securities exchange;

(3) through September 30, 2021, ensure that

the air carrier or contractor shall not pay dividends, or make other capital distributions, with respect to the common stock (or equivalent interest) of the air carrier or contractor; and (4) meet the requirements of sections 4115 and 4116.



{To Be Continued}
Thanks for sharing the product of your research, finding it in the bill, copying/pasting, all of that.

It's always better to read it from the original source than to be speculating from hear-say.

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