US House COVID-19 aid proposal gives airlines bailout hope, but chances slim

A $2.2t draft bill for coronavirus aid unveiled by Democrats in the US House of Representatives late on Monday gave airlines some hope for a second bailout before tens of thousands of layoffs occur on Thursday, although tough hurdles remained.<br/>“I’m hopeful. I’m not necessarily optimistic,” CE Nicholas Calio of trade group Airlines for America said. Washington insiders said passage by Thursday, when an initial $25b that protected airline jobs through September expires, was unlikely, and the airline group did not detail the congressional action it hoped to see. An option would be a quick standalone bill for the airlines, although senior Democratic congressional aides said that was also difficult given that many industries are seeking help. International President of Flight Attendants-CWA Sara Nelson called the proposal, which includes $25b for airlines to keep workers on the payroll for another six months, “a significant and serious move in negotiations.” “It makes agreement on a full relief bill very possible in time to save our jobs,” she said. Between United and American Airlines alone, more than 30,000 employees will be furloughed on Thursday, and tens of thousands more at those airlines and others have agreed to voluntary leave as the sector battles a deep downturn in demand because of the pandemic. Julie Hedrick, president of the union representing American Airlines’ flight attendants, called on Senate Majority Leader Mitch McConnell and House Speaker Nancy Pelosi to schedule a vote. “If we are going to save the airline industry, we have to do it now,” she said.<br/>