U.S. airlines remain in ‘dire straits,’ needs new government assistance: industry group

U.S. airlines remain in ‘dire straits,’ needs new government assistance: industry group

News: U.S. airlines remain in ‘dire straits,’ needs new government assistance: industry group.

WASHINGTON (Reuters) – The head of a group representing major U.S. passenger airlines and a senior union official will propose a third round of government support to lawmakers on Tuesday, Reuters said.

As of March 2020, Congress has provided nearly $ 90 billion in government assistance and low-cost loans to passenger and cargo airlines, airports, and contractors, including two previous rounds of payroll for U.S. passenger airlines totaling $ 40 billion U.S. dollar.

The $ 1.9 trillion COVID-19 aid package approved by the U.S. House of Representatives last week includes an additional $ 14 billion for passenger airlines to keep workers on payroll for an additional six months. It is awaiting action from the US Senate.

Nick Calio, director of Airlines for America, a trade group representing American Airlines, Delta Air Lines, United Airlines and others, will tell the House Transportation and Infrastructure aviation subcommittee that tens of thousands of aviation workers “will lose their jobs – or will experience reductions.” Wages and Benefits – effective April 1st. “

Calio added that “the funding is an explicit acknowledgment that the industry continues to be in dire straits, even before considering the certainty that it will be inundated with debt in the years to come.”

In 2020, U.S. airlines’ passenger numbers dropped 60% to 368 million, the lowest since 1984, and reported pre-tax losses of $ 46 billion. They continue to burn “an estimated $ 150 million in cash every day,” Calio will say.

The current COVID-19 bill also includes $ 8 billion for airports and concessionaires and $ 1 billion for airline contractors.

Joseph DePete, President of the Air Line Pilots Association, will tell lawmakers that “dire long-term booking commitments and the near-lack of business travel demand leave some airlines with insufficient security to reactivate and retrain pilots on leave or otherwise inactive.”

The leaders of the General Aviation Manufacturers Association, Congress and the National Business Aviation Association will reiterate industry calls for steps to encourage sustainable aviation fuel production with tax incentives.

Reporting by David Shepardson and Tracy Rucinski. Adaptation by Gerry Doyle

Original Source © Reuters

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