US airlines expected to receive another bailout

Majority of US House backs new bailout.

 

A majority of US House of Representatives lawmakers signed a letter on Monday calling for a six-month extension of a $32 billion payroll aid program.

 

The letter, led by House Transportation Committee Chairman Peter DeFazio, was signed by 223 House members.

 

Congress awarded $25 billion in payroll assistance to US passenger airlines in March, resulting in the payroll program which is set to expire September 30.

 

“Without an extension of the (payroll support program) before then, hundreds of thousands of airline workers will be fired or furloughed on October 1,” the lawmakers wrote.

 

Between American Airlines and United Airlines, more than 60,000 frontline workers have received warnings that their jobs are on the line at the beginning of October.

 

Although airlines have made it clear that they are not actively seeking additional federal assistance, they would gladly accept funding without additional requirements.

 

The conditions set in March’s bailout state that major airlines are expected to repay about 30% of the payroll funds they receive.

 

The terms also limit share repurchases until the end of September 2021 and executive pay until the end of March 2022.

 

Analysts predict the Trump administration will push for a new bailout for airlines as mass layoffs taking place just before the 2020 presidential election could hurt President Trump’s bid to remain in office.