U.S. Sens. Jerry Moran (R-KS) and Mark Warner (D-VA) have introduced legislation to create a private-public partnership between the U.S. government and aviation manufacturers to help protect the industry during the COVID-19 pandemic.
The two senators, co-chairs of the Senate Aerospace Caucus, said the legislation was designed to temporarily support the industry hit hard by the current public health crisis, and to protect the industry’s workforce.
“The COVID-19 pandemic resulted in a drastic decline in air travel, and as a result, aviation manufacturing has experienced significant financial losses resulting in widespread layoffs,” Moran said. “Both in Wichita – the Air Capital of the World – and around the country, our aviation manufacturing plays a critical role in both commercial and general aviation, and within our defense community. This legislation would create a program to temporarily support aviation manufacturing in order to prevent more layoffs and allow the industry to make a faster recovery once this crisis has passed.”
According to Warner, the legislation would create a partnership in which the federal government would pay 50 percent of the payroll for at-risk employees in exchange for the company’s commitment to continuing their employment.
The program would ensure the industry maintaining its highly-skilled and experienced workforce.
“This cost-sharing public-private partnership is an important step to support the aviation manufacturing, repair, and supply chain workforce,” said Sen. Warner. “The aerospace industry is essential to Virginia and the nation to ensure a strong economy and national defense.”
Industry leaders supported the legislation.
“As our airline customers suffer, decline in air travel is also reverberating across the aviation manufacturing sector. The result is the cancellation of orders and a decreased demand for maintenance and repairs, which in turn, is helping lead to significant layoffs and furloughs in companies of all sizes,” said Eric Fanning, president and CEO of the Aerospace Industries Association. “Temporary and targeted assistance is needed to help save these jobs. The private-public investment envisioned in this bill will provide such support by helping to keep at-risk employees on payroll, while also helping to unburden state unemployment programs.”