Airlines from the United States cannot yet count on new billion-dollar support from the federal government. President Donald Trump announced on Tuesday that his administration has suspended negotiations with Democrats in Congress over a new bailout package.
Trump wants to postpone the decision on the billion dollar support until after next month’s presidential election. That means bad news for airlines, who are in need of a new financial injection.
As for financial aid to the aviation industry, Trump returned the ball to Congress. Hours after his announcement, Trump tweeted that congressmen must swiftly agree to 25 billion dollars in payroll assistance to airlines. That money should come from unused funds from the previous COVID-related support package.
In the past six months, American carriers have already received 25 billion dollars in government aid. In exchange for that support, they were not allowed to expel staff until October 1st. American Airlines and United Airlines have already started laying off 32,000 employees.
Democrats in the House of Representatives proposed a new bailout package that would pump 2.2 trillion dollars into the US economy last week. The aviation sector would receive an additional 25 billion dollars in government aid under the so-called CARES Act II.
Nancy Pelosi, the Speaker of the House of Representatives, even called on American carriers not to send staff on unpaid leave en masse. She expected a short-term agreement between Democrats and Republicans on new economic support for the aviation sector, but that turned out to be empty hope.