US Airlines Seeking Nearly $60 Billion to Sustain Industry During Virus Outbreak
WASHINGTON – U.S. Airlines are asking for close to $60 billion in government assistance to help them deal with industry travails associated with the ongoing coronavirus outbreak.
Airlines for America, the trade association that represents Delta, United, American and Southwest, among other carriers, urged the Trump administration to provide the industry with immediate and long-term assistance in the form of grants, loans and tax relief.
The association is specifically seeking up to $25 billion in grants for passenger carriers to compensate for reduced liquidity and in the medium-term $25 billion in low- or zero-interest loans.
It is also seeking a temporary repeal of the Aviation Excise Tax and a rebate of all federal excise taxes paid by the carriers since the first of the year.
“Carriers have seen a dramatic decline in demand, which is getting worse by the day,” said association president and CEO Nicholas Calio in a written statement.
“Carriers have been forced to remove flights from their schedule and make historic capacity cuts. Cancelations are spiking, and for U.S. carriers those cancelations are outpacing new bookings,” he continued.
“The economic impact on U.S. airlines, their employees, travelers and the shipping public is staggering. This crisis hit a previously robust, healthy industry at lightning speed and we remain concerned that the impacts of this crisis will continue to worsen,” he said.
The aid, if received, would be the industry’s first broad bailout since the wake of the Sept. 11, 2001 attacks.
The association asks that the Treasury Department immediately begin designing the grant program, and the Federal Reserve to do the same when it comes to the liquidity facility program.
It says it hopes to see the programs launched within the next 15 days.
“This is a today problem, not a tomorrow problem. It requires urgent action,” Calio concluded.
In The News
Billionaire Investor Mark Cuban headlined a virtual discussion hosted by Axios Friday afternoon focused on leading in a crisis, sharing his thoughts on specifically how to lead and work together for social good in the midst of a global pandemic. “When you deal with imperfect information,... Read More
WASHINGTON — House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer urged the Treasury Department to move more quickly to help airlines to save industry jobs and refrain from imposing “unreasonable conditions” that might spur some carriers to decline payroll assistance. In a letter Sunday... Read More
WASHINGTON - The rating agency Moody's downgraded its outlook for non-bank mortgage lenders in the U.S. from "stable" to "negative" on Thursday, warning the industry faces "intense" liquidity problems due to the ongoing coronavirus outbreak. As previously reported in The Well News, nonbank lenders like ABC... Read More
WASHINGTON (AP) — It may be an odd gesture at a time of social distancing, but President Donald Trump is leaning into his plea to Congress to restore full tax benefits prized by business for fine dining and schmoozing. Trump is seizing on the pandemic crisis... Read More
WASHINGTON - The Treasury Department provided some guidance Monday night on how it will award grants and loans to airlines affected by the coronavirus outbreak, urging them to apply for "payroll support" by Friday. The department said the resources it was making available online are intended... Read More
WASHINGTON - Even before Congress had passed the third economic stimulus package of the coronavirus era on Friday, talk had turned to what should be included in a currently hypothetical, but no less likely, fourth stimulus bill. Among the welcome steps taken so far are decisions... Read More