Airports slots provide a much-needed loan for JetBlue

Aviation website simpleflying.com is reporting that US carrier JetBlue has pledged slots at three airports in New York and Washington DC area as collateral for a US$750 million loan. The airline has reached an agreement with lenders on 17 June in an effort to raise much needed cash for the carrier. The airline will still continue with its normal schedule flights.

JetBlue is just one of the carriers that has been struck hard by the COVID-19 pandemic, and although the US government has provided assistance to help out airlines, the money is only to support the airline’s payroll, leaving other expenses unaccounted for. So, JetBlue has now entered into a $750 million Term Loan Credit Agreement.

For collateral, JetBlue has pledged takeoff and landing slots at three airports. This includes New York’s LaGuardia Airport, John F. Kennedy International Airport, and Washington, DC’s Reagan National Airport. All of these airport slots are incredibly valuable. The airline did not reval how many slots at each airport are being put up.

As part of the agreement, JetBlue will continue to use its pledged slots per FAA guidelines.