Business

Alaska Airlines secures loans; casinos in NJ reopening

July 3, 2020 5:35 am

The outbreak of the coronavirus has dealt a shock to the global economy with unprecedented speed.

Following are developments Thursday related to the national and global response, the work place and the spread of the virus.

TRANSPORTATION: Alaska Airlines has secured nearly $1.2 billion in private loans to further secure its financial stability. The debt financing will be funded on or around Thursday.

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The company will use 61 of its owned aircraft as collateral to back the debt. This includes 26 Boeing 737-800s, 16 Boeing 737-900ERs and 19 Embraer 175s.

The aircraft will remain encumbered until the debt is repaid.

McGee Air Services, a wholly owned ground services subsidiary of Alaska Airlines that operates independently, has also received nearly $30 million in funding.

This is in addition to the $992 million in the form of a $725 million grant and a $267 million loan that Alaska Airlines and Horizon Air jointly received to be exclusively used to pay employee salaries, wages and benefits through Sept. 30.

The airline sector is trying to regain its footing by securing loans, expanding routes and increasing capacity.

— Factory and dealership shutdowns to stop the spread of the coronavirus sent U.S. new vehicle sales into a tailspin during the second quarter.

Sales fell about 34% from April through June a year ago to around 2.9 million, and they were down about 16% from the first quarter of this year, according to the Edmunds.com auto pricing site.

Car, truck and SUV sales showed a little strength in June as factories came back on line and dealerships reopened to sell cars in person rather than just online.

But they were still down an estimated 27% from June of last year.

Automakers used incentives such as 0% financing to help boost sales. Incentives rose 7% in June compared with a year ago, to $4,090 per vehicle, Morgan Stanley said Thursday.

Ford sales were down 33% for the quarter, while General Motors sales dropped 34% and Fiat Chrysler’s were off 39%. Toyota’s sales dipped 27% and Nissan sales were almost cut in half.

Automakers said the biggest drop came in sales to fleet buyers such as rental car companies.

— Qatar Airways said Thursday it will require passengers and crew members to wear disposable plastic face shields over their face masks. When it comes to face coverings, the Persian Gulf carrier is upping the ante: All leading U.S. airlines and many others around the world require masks but not shields, which are more often associated with health care workers during the virus pandemic. Qatar Airways, which flies to six U.S. cities, says it will provide the shields for free along with a mask, gloves and sanitizer gel.

ROLL OF THE DICE: For the first time in 108 days, slot machines beeped, dice tumbled and cards were be dealt at Atlantic City’s casinos Thursday as they reopened amid a coronavirus pandemic that has drastically changed things both inside and outside the casino walls.

Gamblers are not allowed to smoke, drink or eat anything inside the casinos. They must wear masks while in public areas of the casino, and have their temperatures checked upon entering.

TOURISM:

New statistics in Spain show the coronavirus outbreak cost the country’s key tourism sector more than 15 billion euros ($17 billion) in two months.