Comments from Mnuchin
The key revelation from Mnuchin in his latest appearance is that any bailout for airlines will be on market terms.
The airline bailout sets the standard for all the bailouts to come. Companies are pushing for cash grants but Mnuchin is hinting that won't come (Congress has the ultimate say).
Airlines are threatening to lay off employees if they don't get generous bailouts but that's a hollow threat. There are shortages of pilots and mechanics throughout the industry. If/when they restart operations, those people will be in high demand.
The important thing here is the nature of the bailouts. He said they could take equity stakes but if that's on 'market terms' it likely means dilution or (more likely) warrants like in the last bailout.
These will still be incredibly generous programs but not as generous as a company like Boeing would like.
