Politics NewsTop News

Majority of U.S. House backs new bailout for U.S. passenger airlines

imagePolitics2 hours ago (Jul 27, 2020 07:10PM ET)

By David Shepardson and Tracy Rucinski

WASHINGTON/CHICAGO (Reuters) – A majority U.S. House of Representatives lawmakers signed a letter made public on Monday calling for a six-month extension of a $32 billion payroll aid program that they argue is crucial to keeping hundreds of thousands of aviation workers employed through March 31.

“Without an extension of the (payroll support program) before then, hundreds of thousands of airline workers will be fired or furloughed on October 1,” the lawmakers wrote. The letter, led by House Transportation Committee Chairman Peter DeFazio, was signed by 223 House members, including 195 Democrats and 28 Republicans.

The lawmakers said that without action the layoffs “will eclipse those of any furloughs the industry has ever seen.”

The payroll program is set to expire Sept. 30.

Congress awarded $25 billion in payroll assistance to U.S. passenger airlines in March, along with $4 billion for cargo carriers and $3 billion for airport contractors. Most of the bailout funds do not have to be paid back.

Senate Republicans on Monday introduced a proposal to address new coronavirus needs but did not include new airline payroll funding.

More than a dozen aviation unions applauded the letter, saying, “Congress has the power to ensure airline workers will continue to stay on payroll … and keep aviation workers ready to turn the industry around once this crisis is behind us.”

Airlines have said they are not actively seeking additional federal assistance but would accept funding without additional requirements.

When the first package was approved, large U.S. airlines hoped for a recovery in demand by October. But as the virus has accelerated, airline executives warn that demand that had shown signs of recovering was stalling again, threatening jobs. Between American Airlines (NASDAQ:AAL) and United Airlines, more than 60,000 frontline workers have received warnings that their jobs are on the line on Oct. 1.

Mass airline layoffs could take place just over a month before the 2020 presidential and congressional elections.

Majority of U.S. House backs new bailout for U.S. passenger airlines

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!