Airline CEOs Asked to Testify Before Congress

Barely two weeks after Congress asked for a hearing on how airlines used the federal grants and loans given to them last year, lawmakers are getting their wish.

According to an exclusive story by Reuters News Service, the CEOs of seven U.S. airlines have been asked to testify on Dec. 8 before the Senate Commerce Committee to answer questions about staffing shortages that have contributed to huge delays and cancellations this year.

The total of $54 billion given to airlines on three separate occasions was part of the CARES Act to fight financial hardship during the pandemic. Dubbed the “Paycheck Protection Program,” the money was mostly earmarked to keep employees on staff.

In fact, stipulations on the grants and loans included prohibitions on layoffs, salary reductions and stock buybacks, and limitations on executive bonuses.

But many airlines further cut costs by offering early retirement and buyouts for employees. When the pent-up demand for air travel exploded earlier this year, carriers were literally caught short-staffed.

Last month, Congresswoman Eleanor Holmes (D-District of Columbia) called for hearings before the House Committee on Transportation and Infrastructure.

“There should have been every reason, particularly given the bailout money for the airlines, to prepare for the surge we’re seeing now,” Holmes said. “This money was for a very specific purpose.”

But the Senate was way ahead of her and had hearings planned for this month. Now, next week on December 8, the CEOs of American, United, Delta, Southwest, JetBlue, Alaska and Spirit airlines have been invited to testify before the Commerce Committee.

The airlines did not respond to Reuters’ requests for comment at press time.