U.S. Sees Airline Loyalty Assets as Possible Collateral
- Carriers in talks with government about rescue loans
- Routes, planes are among other asset options for collateral
Photographer: David Paul Morris/Bloomberg
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The U.S. Treasury Department is in talks with some airlines about accepting their loyalty programs as collateral against government loans to help them weather the coronavirus crisis.
Other assets are also in play, including some international flight routes, planes, engines, airport gates and spare parts, according to people familiar with the negotiations, who requested anonymity because the matter is private. Applications are due Friday for the $25 billion loan program, the second round of U.S. funds made available to airlines. The people didn’t name the airlines.