House Democrats Say They’re Adding Airline Aid to Stimulus

Democrats in the House of Representatives say they are including more aid for airlines in their version of a second coronavirus stimulus package – but they won’t say how much.

“We’re putting airlines in,” Rep. Peter DeFazio (D-Ore.), chairman of the House Transportation and Infrastructure Committee, told the respected political publication The Hill.

If you’re waiting for a back end to that quote, there is none. Democrats, including House Speaker Nancy Pelosi, have supported giving the airlines a second round of federal grants and loans, much as they did with the CARES Act in March. But they haven’t said how much, while a Republican proposal earlier this week called for $28 billion in aid.

Either way, the pressure is on to get a deal done.

Under the terms of the CARES Act, airlines that accepted help back in March agreed to not fire or lay off any of its employees for six months. That deal expires on Oct. 1, and airlines are looking at up to 70,000 layoffs or furloughs if a deal can’t be made.

“We have been told that airline worker relief is in the package and are grateful for the strong, bipartisan support. We are hopeful that this is the start of a negotiation that will help our industry and others in distress,” Nicholas Calio, head of the industry group Airlines for America, told The Hill in statement.

The industry is asking for at least another $25 billion for the Payroll Protection Program to avoid any job cuts for another six months, at which time they hope to be back on their feet. Demand for air travel is down 70 percent compared to this time last year.

“The jobs and livelihoods of tens of thousands of U.S. airline employees are at stake, and time is running out. We commend the congressional leadership and the Administration for recognizing the urgency of the situation,” Calio said.

American Airlines CEO Doug Parker, United CEO Scott Kirby and JetBlue Airways CEO Robin Hayes were on Capitol Hill this week with union leaders to plead for Congress to made a deal on aid to the industry before Oct 1.