US government approves $ 14 billion more for pandemic-affected airlines

Airline job cuts are here—Here’s what to know

US government approves $ 14 billion more for pandemic-affected airlines

US House Committee approves a proposal to provide airlines with an additional $ 14 billion in salary assistance as part of a broader COVID-19 pandemic package currently undergoing congressional hearings.

This will be the third round of support for the aviation industry hit hard by the coronavirus pandemic. American Airlines and United Airlines have warned they will be forced to send approximately 27,000 workers on unemployed leave unless the current assistance package expires on April 1..

The House Financial Services Committee, by 29 votes to 24, approved $ 14 billion for airlines and $ 1 billion for contractors to cover employee wages through September this year..

Funds to be included in President’s $ 1.9 Trillion COVID-19 Economic Aid Bill Joe Biden, whose original plan did not provide for new cash tranches for airlines. Speaker of the House of Representatives Nancy Pelosi said Thursday that it expects lawmakers to agree and pass the bill by the end of February.

American Airlines said in a statement following a committee vote that a support program that covers payroll coverage for employees and prohibits job cuts, «became a lifeline for our team members».

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US airlines spend millions of dollars every day as pandemic dampens travel and travel demand.

The Air Line Pilots Association, the largest pilot union in the world, said the funds would help avert the threat of financial ruin that could result from the aviation industry being forced to lay off tens of thousands of workers..

However, in recent weeks, low-cost carriers Spirit Airlines, Allegiant Travel and Frontier Airlines have said they intend to resume recruiting later this year..

Reuters was the first to reveal many of the details of plans to provide new assistance to US airlines, transportation systems, airports and the Amtrak passenger rail..

US government approves $ 14 billion more for pandemic-affected airlines

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