THE bipartisan legislative deal expected to be unveiled by US lawmakers on Sunday will grant US airlines US$15 bil in new payroll assistance that will allow them to return more than 32,000 furloughed workers to their payrolls through Mar 31, sources briefed on the matter told Reuters.
The legislative plan to provide about US$900 bil in COVID-19 relief and fund the government is also expected to include US$1 bil to passenger railroad Amtrak, US$14 bil for public transit systems and US$10 bil for state highways, the sources said.
It is also expected to include significant changes to how the Federal Aviation Administration certifies new airplanes following two fatal Boeing Co 737 MAX crashes that killed 346 people.
The aviation assistance comes after five months of furious lobbying – first by aviation unions and later by airline executives – who argued the industry desperately needed new government help as travel demand remains devastated by the COVID-19 pandemic.
The US$45 bil COVID-19 transportation package is also set to include US$1.75 bil for airports and US$200 mil for airport concessionaires and US$2 bil for the private motorcoach, school bus and ferry industries, according to two sources.
US airlines furloughed more than 32,000 workers in October, after a six-month US$25 bil bailout measure expired on Sept 30.
Airline workers would be paid retroactive to Dec 1 and airlines would have to resume flying some routes they stopped after the aid package expired, congressional aides briefed on the talks said earlier. Airline workers could not be furloughed through Mar 31 as a condition of the assistance.
In October, American Airlines furloughed 19,000 employees, while United Airlines furloughed more than 13,000.
American Airlines suspended flights to some smaller U.S. airports in October.
The new assistance program is expected to mirror the US$25 bil program approved by Congress in March, which required larger airlines to repay 30% of the payroll grants over time and offer the government warrants. It is also expected to include minimum flight requirements.
US carriers are losing US$180 mil in cash daily, with passenger volumes down 65% to 70% and cancellations rising, industry lobby Airlines for America said.
Congress in March approved a separate US$25 bil in low-cost government loans for airlines and suspended some aviation excise taxes through Dec 31.
