President Donald Trump has promised additional aid to struggling U.S. airlines as huge job cuts loom ahead of the November presidential election.
Trump Promises More Aid To Airlines
Speaking on his way to Kenosha, Wisconsin yesterday, Trump offered promises but not specifics:
“We’ll be helping the airlines. You have to help the airlines, it’s a tough business always is. Airlines are a tough business in good times and we are about ready to get back to good times.”
Payroll support from the CARES Act expires on September 30, 2020 and U.S. airlines are already preparing to lay off thousands of employees.
For weeks, Trump has dangled the promise that airlines will receive a second bailout via additional payroll support, but negotiations over the specifics of such a package have stalemated. Furthermore, it is Congress, not the White House, that holds the power of the purse. Nevertheless, White House Chief of Staff Mark Meadows also recently hinted at an Executive Order that would bypass Congress and provide relief directly to airlines.
The idea of a “clean” extension for six months seems troubling considering how many employees have already retired, accepted voluntary furloughs, or agreed to early separation packages. While U.S. airlines plan to lay off up to 75,000 employees this autumn, $25 billion in additional payroll support works out to $333,333.33 per worker for six months!
image: White House