In a letter to Congress, CEOs from airlines and an airline association urged them to pass an economic stimulus bill quickly in order to save jobs.
Congress has been working on passing a $1.7 trillion economic stimulus package that would help the airline industry, as well as small businesses, the health care system, and individuals. In the past weeks since the onset of the coronavirus pandemic, and its effects on the American economy, airlines have asked for more than $50 billion in loans and grants to help save the industry.
Now, as the legislation stalls in Congress while Democrats argue the money given to corporations has little oversight and could allow businesses to fire employees and purchase back their stock, or increase compensation to their executives, airlines are promising they won’t do that.
The letter, signed by the CEOs of 10 major airlines and Nicholas Calio, president and CEO of Airlines for America, urges Congress to act quickly.
“Over the past decade, we have reinvested over 73 percent of our operating profits back into our people and product, creating good paying jobs at a rate that has outpaced other sectors. As a result of a global pandemic and government actions to contain it, we are now undertaking over $30 billion of self-help measures, including asking our employees to take voluntary unpaid time off, parking planes and trying to obtain financing in today’s credit market,” the March 21 letter said. “Given the extreme nature of this situation, we respectfully urge Congress not to pursue opportunistic measures that will hurt, not help our ability to recover. Unless worker payroll protection grants are passed immediately, many of us will be forced to take draconian measures such as furloughs.”
The letter also promises the industry will retain employees and won’t increase executive compensation.
“If worker payroll protection grants are enacted, equaling at least $29 billion, participating passenger and cargo air carriers will not furlough employees or conduct reductions in force through August 31, 2020,” the letter said. “If loans and/or loan guarantees are enacted, equaling at least $29 billion, participating passenger and cargo air carriers commit to placing limits on executive compensation; eliminating stock buybacks over the life of the loans; and eliminating stock dividends for the life of the loan.”
Airlines for American said the industry employs more than 750,000 workers directly, and indirectly employs more than 10 million in industries related to the aviation industry.
“The breadth and immediacy of the need to act cannot be overstated. It is urgent and unprecedented,” the letter said.