Coronavirus Relief - Pandemic Relief for Aviation Workers

PSP1: direct financial assistance payments to passenger air carriers, cargo air carriers and certain contractors aimed at preserving aviation jobs. The financial assistance payments must be used exclusively for the continuation of payment of employee salaries, wages, and benefits. PSP2: direct financial assistance payments to passenger air carriers and certain contractors aimed at preserving aviation jobs. The financial assistance payments must be used exclusively for the continuation of payment of employee salaries, wages, and benefits. PSP3: direct financial assistance payments to passenger air carriers and certain contractors aimed at preserving aviation jobs. The direct financial assistance payments must be used exclusively for the continuation of payment of the recipient’s employee salaries, wages, and benefits. The CARES Act, the PSP Extension Law, and the ARP authorizes the U.S. Department of the Treasury to receive warrants, promissory notes, and other financial instruments issued by companies, for the provision of financial assistance under PSP1, PSP2, or PSP3. Accordingly, certain recipients provided statutorily required taxpayer protection in the form of a ten-year term promissory note equal to 30 percent of the payroll support provided over $100 million to passenger air carriers, 44 percent of the payroll support provided over $37.5 million to contractors, and for PSP1 only, 56 percent of the payroll support provided over $50 million to cargo air carriers. Certain passenger air carriers and contractors also provided warrants which Treasury may exercise to potentially receive a cash settlement or shares of common stock. Each warrant expires five years after the date it was issued. Unlike PSP1, PSP3 was available only to passenger air carriers and certain contractors. Unlike PSP2, carriers and contractors must have received funding under PSP2 to be eligible for PSP3 financial assistance payments.