[Coronavirus] Airlines for America asks for assistance through grants, loans and tax relief

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A4A Statement on COVID-19

Airlines for America (A4A), the industry trade organisation for the leading U.S. airlines, issued the following statement:

This is an extremely fluid situation that is evolving rapidly. The rapid spread of COVID-19, along with the government and business-imposed restrictions on air travel, are having an unprecedented and debilitating impact on U.S. airlines. Carriers have seen a dramatic decline in demand, which is getting worse by the day. Carriers have been forced to remove flights from their schedule and make historic capacity cuts. Cancellations are spiking, and for U.S. carriers those cancellations are outpacing new bookings. The economic impact on U.S. airlines, their employees, travellers and the shipping public is staggering. This crisis hit a previously robust, healthy industry at lightning speed and we remain concerned that the impacts of this crisis will continue to worsen.

U.S. carriers are in need of immediate assistance as the current economic environment is simply not sustainable. This is compounded by the fact that the crisis does not appear to have an end in sight. In order to combat this unprecedented economic downfall, A4A is recommending the following combination of programs to provide immediate and medium to long-term assistance to the U.S. airline industry and protect their employees: 1) grants; 2) loans; and 3) tax relief. More information is available here.

This is a today problem, not a tomorrow problem. It requires urgent action,” said A4A President and CEO Nicholas E. Calio.

U.S. airlines are in continuous conversations with the Administration, Congress and labour unions in an effort to secure financial assistance from the federal government to protect and preserve the 750,000 jobs of hardworking men and women who are directly employed by U.S. airlines, as well the 10 million jobs supported by the airline industry. This includes pilots, flight attendants, mechanics, gate agents, ticket agents, parking attendants and many more. Our employees are truly the backbone of the U.S. airline industry and our greatest resource, and U.S. carriers are doing everything in their power to protect their livelihood.

WASHINGTON, March 16, 2020

1 COMMENT

  1. But IAG has a surplus. IAG “has strong liquidity with cash, cash equivalents and interest-bearing deposits of €7.35 billion as at 12 March. In addition, undrawn general and committed aircraft backed financing facilities amount to €1.9 billion, resulting in total liquidity of €9.3 billion.” it doesn’t own all airlines but it should take care of its own. I’m not sure who will pay for this when taxpayers are already so hard squeezed. Am I missing something here?

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