U.S. policymakers set to back $15B in airline payroll assistance

A bipartisan legislative deal reportedly revealed by the United States legislators on Sunday would grant U.S. airlines nearly $15 billion in a novel payroll assistance, which would allow them to bring back approximately 32,000 workers furloughed to payrolls through 31st March.

The support is part of $45 billion reserved for the transportation industry in the $900 billion economic relief package proposed for coronavirus relief.

As per sources, Amtrak, the leading passenger railroad company, is expected to receive $1 billion meanwhile $10 billion would go to state highways, and $14 billion to public transit systems.

The U.S. legislative plan is also likely to include significant reforms to how the FAA (Federal Aviation Administration) certifies novel airplanes in the wake of two Boeing 737 MAX crashes in Ethiopia and Indonesia, killing nearly 346 people.

The assistance for aviation comes after nearly 5 months of furious petitioning, initially by aviation unions and later by airline executives, who contended that the industry badly needed a novel government aid since demand for travel remains ruined by the COVID-19 pandemic.

U.S. airlines displaced nearly 32,000 workers in October, after the $25 billion 6 month-long bailout scheme expired on 30th September. In fact, American Airlines laid off nearly 19,000 workers and United Airlines furloughed about 13,000 employees.

Meanwhile, as a condition of the assistance, the airline employees could not be furloughed by 31st March. The novel assistance program is anticipated to mirror the $25 billion program approved by Congress in March, which needed larger airlines to repay at least 30% of the payroll grants as well as offer warrants to the government. The program is also likely to include minimum number of flight requirements.

As per officials, the $45 billion transportation package would also include $2 billion for ferry, private motor coach, and school bus industries, $1 billion for airport contractors, approximately $200 million for airport concessionaires, and nearly $1.75 billion for airports.

Source credit: https://uk.reuters.com/article/uk-health-coronavirus-transportation/u-s-lawmakers-back-15-billion-in-airline-payroll-assistance-idUKKBN28U0TV

Having completed her Post Graduate degree in Digital Marketing, Shreshtha always nurtured an innate passion for writing. She works as a content writer at JustPositivity.com and pens down news articles spanning numerous verticals. Her other interests include reading and travelling.