NBAA & NATA Welcome Treasury’s COVID-19 Accommodations for Charter Companies

The Treasury Department will not require passenger air carriers that will receive $100 million of payroll assistance or less to provide financial instruments as appropriate compensation. As such, for passenger air carriers with payroll support payments up to $100 million, funds will be available promptly upon approval of their applications. The majority of these requests seek less than $10 million. Due to the small size of the awards, and not needing to conduct negotiations over financial instruments, Treasury anticipates being able to promptly distribute the funds.

Air carriers receiving payroll support must meet minimum service requirements, limit any share buybacks, follow executive compensation limitsand refrain from involuntary furloughs; however, the provision of financial instruments to the government as appropriate compensation is no longer required.

According to guidance by the Treasury Department, applications will continue to be accepted “until 11:59 p.m. EDT on April 27, 2020. However, applications submitted after April 3 may receive less immediate consideration. Applications received after April 27, 2020 may or may not be considered at the discretion of the Treasury Department, subject to the availability of funds.”