U.S. airlines absent from Senate COVID-19 relief proposal, unions plan action By Reuters

2/2
© Reuters. A sign alerts travelers to the danger of COVID-19 at LaGuardia Airport, during the outbreak of the coronavirus disease (COVID-19), in New York

2/2

By David Shepardson and Tracy Rucinski

WASHINGTON/CHICAGO (Reuters) – A U.S. Senate Republican coronavirus spending proposal to be introduced on Tuesday does not include new government assistance for U.S. airlines or airports, two aides said, as the sector races to save jobs before October.

More than 35,000 workers at two of the largest U.S. carriers alone – American Airlines (NASDAQ:) and United Airlines – are set to lose their jobs once an initial $25 billion in payroll support from the government expires this month.

That has fueled a furious push by unions for a six-month extension of the aid, with flight attendants and other aviation workers planning to march outside the U.S. Capitol on Wednesday.

U.S. President Donald Trump has floated the idea of airline aid without congressional action, but officials said last week the administration has yet to settle on an approach.

One possibility under discussion was redirecting unspent funds from the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in March, people familiar with the matter said, though it was unclear how conditions could be set without going through Congress.

The initial $25 billion airline payroll aid included restrictions on share buybacks and executive compensation and required airlines to protect jobs and pay through September.

The Senate measure, which is expected to be voted on Thursday, is seen as an opening salvo for talks that are expected to intensify once the U.S. House returns from recess next week.

Republicans and Democrats have been jockeying for months over the next phase of coronavirus aid, after passing more than $3 trillion this year. There has been bipartisan support for additional airline aid, even though it did not make it into the latest Senate proposal, which excludes $10 billion in assistance for airports that was part of an earlier Senate bill, the sources said.

Airlines are bracing for a slow recovery from the coronavirus pandemic but say they need trained workers ready to service and fuel any economic rebound.

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.

Be the first to comment

Leave a Reply

Your email address will not be published.


*