Senators unveil relief package with $ 17 billion for airlines

A bipartisan group of senators has revealed a relief plan that includes $ 17 billion for the airlines. Despite the end of wage bill support at the end of September, airlines continued to press for government support. However, while there was some desire to support the industry, this did not lead to new relief bills, leading to unintentional job cuts.

Additional assistance to airlines

Reuters says the new $ 908 billion relief proposal will include $ 17 billion for four months of airline payroll support, according to a spokesperson for Senator Mark Warner, a Democrat from Virginia.

The $ 17 billion is part of the $ 45 billion for transportation, including $ 15 billion for mass transit systems, $ 4 billion for airports, $ 8 billion for private buses and $ 1 billion for Amtrak. The money is expected to last four months, according to Democratic Senator from West Virginia Joe Manchin.

Republican Senator Mitt Romney said he spoke with Treasury Secretary Steve Mnuchin about a number for the airlines. It is currently unclear whether there is support from the White House, industry or lawmakers for this bill, which is one of many that have emerged since the first round of support after. the onset of the crisis.

Payroll assistance until early 2021

The four months of payroll support would cover the industry until early 2021. If passed in December, it would last for carriers until March, leading into the summer travel season of 2021. That would match. around the time the airlines were asking for a second round of industry support to last up.

In October, American Airlines CEO Doug Parker said he believed the airline would only need six more months of government support to keep critical infrastructure in place. He said he expected the industry to be in a much better position than in October and head for a strong season for the airlines.

What about actions already taken by airlines?

Tens of thousands of industry workers are unemployed, most choosing to take unpaid or involuntary leave. Although airlines said early on that they would bring back people who left involuntarily after the first round of leaves, which hit many groups of workers hard, it’s unclear if that’s a requirement of the bill. . Airlines may need to call back all staff on leave for assistance.

Other actions taken by the airlines include the suspension of services to many small regional destinations in the United States. Many carriers mentioned a sharp drop in demand, no mandate from the government to serve the routes, and no form of industry support to continue to fly profitably to these cities.

During the first phase of industry support, airlines had to offer minimum service levels based on the number of traditional flights to certain destinations and the season. While there were options for carriers to receive waivers to temporarily remove certain cities from their network, these were difficult to find for many airlines.

It would not be surprising to see this provision reappear in this bill. This would ensure that airlines continue to keep open some small towns with essential transport and air transport corridors.

Will it pass?

There is an appetite for a relief bill in Congress, but there was one for several months after it became clear that the first round of support would not last through most of the crisis. However, whether this becomes another dead bill depends on the level of support it gets from members of Congress, the White House and outside industry groups. Several invoices came and went.

A massive package like this will need a few rounds of tweaking. Certain elected officials, industrial groups and government representatives seek more or less funds in certain pools. However, whether the bill reaches this stage depends on whether leaders in Congress or the White House support the bill. For now, this is just a bill.

Do you think this package should be approved? Should airlines get more money for relief? Let us know in the comments!