Just months after an initial bailout worth billions of dollars, airlines might be receiving another round of assistance from Uncle Sam. Two Republican senators are introducing legislation to help U.S. carriers with another $28 billion in aid. Here’s what you need to know about a second airline bailout:
New Airline Bailout Proposal Introduced
Senators Susan Collins (R, ME) and Roger Wicker (R, MI) are proposing a new $28 billion round of airline relief, with legislation introduced to the U.S. Senate this past week. The senators claim the legislation will help protect industry workers, amidst a spate of layoffs.
The new airline relief package seeks to protect airline workers and airport staff through the end of March 2021.
“Additional Relief Is Needed”
Despite the earlier airline bailout, part of the approximately $2 trillion CARES Act, many U.S. carriers announced plans for sweeping layoffs earlier this summer. Both American Airlines and United look set to slash their employee numbers by 10,000 jobs each, with over 40,000 jobs at stake in the industry.
While the terms of the CARES Act prevent airlines form announcing layoffs until October 1, 2020, these job cuts seem a certainty without further relief.
“The CARES Act successfully saved thousands of jobs that support the airline industry and provided these businesses with some breathing space after the drastic drop in air travel caused by the COVID-19 pandemic. However, the market has not turned around as much as we had hoped, and additional relief is needed.”
The new airline relief package seeks to protect airline workers and airport staff through the end of March 2021. How successful the legislative proposal will be remains to be seen. With little time before the October 1 deadline, bipartisan support is essential for the future of any new bailout.
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