As Airlines Begin Layoffs, Nancy Pelosi Promises Bailout
Two major American airlines are threatening to cut roughly 32,000 jobs in the coming weeks unless Congress delivers another taxpayer-funded bailout—and Speaker of the House Nancy Pelosi (D-Calif.) is preparing to clear the runway.
In a statement on Friday, Pelosi called on airlines to delay planned layoffs that were scheduled to begin after a previous round of federal support expired. Pelosi said House Democrats were working to extend another round of emergency aid to airlines in a stand-alone bill after the passage of a larger coronavirus relief package stalled in the Senate.
American Airlines and United Airlines announced plans this week to slash 19,000 and 13,000 jobs, respectively, after the expiration of a $32 billion aid package passed in March. That bailout, part of the $3 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, allowed airlines to tap into federal assistance as long as they kept at least 90 percent of their staff on payroll through the end of September.
With that deadline now passed and air travel still suffering due to the COVID-19 pandemic—passenger air traffic is running at roughly 30 percent of 2019 levels, Reuters reported on Friday—airlines are expected to cut unnecessary sta
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