Thursday, Jul 09, 2020 | Last Update : 07:14 AM IST

106th Day Of Lockdown

Maharashtra2237241231929448 Tamil Nadu118594711161636 Delhi102831742173165 Gujarat37636267441978 Uttar Pradesh2996819627313 Telangana2761216287313 Karnataka2681511100417 West Bengal2383715790804 Rajasthan2140416575472 Andhra Pradesh211979745252 Haryana1799913645279 Madhya Pradesh1562711768622 Bihar12525933898 Assam12523833016 Odisha10097670354 Jammu and Kashmir89315399143 Punjab67494554175 Kerala5895345228 Chhatisgarh3415272814 Uttarakhand3230262143 Jharkhand3018210422 Goa190311568 Tripura171612481 Manipur14307710 Himachal Pradesh107876410 Puducherry104351714 Nagaland6443030 Chandigarh4924017 Arunachal Pradesh270922 Mizoram1971390 Sikkim125650 Meghalaya94432
  Business   In Other News  22 Mar 2020  US airlines warn of 'draconian' steps if Congress fails to help

US airlines warn of 'draconian' steps if Congress fails to help

Published : Mar 22, 2020, 11:13 am IST
Updated : Mar 22, 2020, 11:13 am IST

Pandemic has had a devastating effect on air transport in the United States, as several countries have imposed far-reaching travel bans

Representational Image (PTI)
 Representational Image (PTI)

Washington: The chief executives of the largest US airline companies asked Congress saturday for urgent help avoiding widespread layoffs among the industry's 750,000 employees.

"Unless worker payroll protection grants are passed immediately, many of us will be forced to take draconian measures such as furloughs," the CEOs said in a letter to leaders of both houses of Congress distributed by the Airlines for America trade group.

"The breadth and immediacy of the need to act cannot be overstated," it said. "It is urgent and unprecedented."

Airlines for America represents American Airlines, United Airlines, Delta Air Lines and Southwest Airlines as well as shippers FedEx and UPS.

"On behalf of 750,000 airline professionals and our nation's airlines, we respectfully request Congress to continue to move expeditiously to pass a bipartisan proposal that includes a combination of worker payroll protection grants, loans and loan guarantees and tax measures. Time is running out."

The signatories appeared to be trying, in part, to counter recent negative publicity over reports that in recent years the airlines, while taking in billions in profits, used stock buybacks and other measures to reward shareholders rather than putting money into workers' salaries or a rainy-day fund.

President Donald Trump seemed to allude to those reports during saturday's White House briefing on the coronavirus, saying of plans to help US companies, "I want money to be used for workers and keeping businesses open, not buybacks.

"I am strongly recommending a buyback exclusion. You cannot buy back your stock. You can't take a billion dollars of the money and buy back your stock."

The letter said the sector had already taken steps to protect itself from the catastrophic effects of the coronavirus which the International Air Transport Association estimates could wipe $30 billion in revenues from the books of global airlines.

Over the past decade, the letter said, the industry had reinvested 73 percent of its operational earnings "in our personnel and our products."

But the letter added that the ability to renegotiate credits was waning amid the panic seizing he debt market, given the amplitude of the virus crisis.

The pandemic has had a devastating effect on air transport in the United States and elsewhere, as several countries have imposed far-reaching travel bans.

The US Congress has already passed two emergency rescue plans.

This weekend, it is working on another aid package with a price tag of over $1 trillion, which could be voted on in the Senate as early as Monday if Democrats and Republicans reach agreement.

Tags: us airlines, us congress, coronavirus pandemic, coronavirus impact, us covid 19
Location: United States, Washington, Seattle