Monthly Archives for June 2020.
The Singapore government, Cathay Pacific’s engineering firm, and a wine distributor all got federal CARES Act subsidies. And there’s still $2 billion undistributed.
The novel coronavirus has cast a shadow on the whole world since January, though not everyone realized it until late February or early March. It’s led to a deeper recession than we’ve seen in any of our lifetimes, and one of the industries hit the absolute hardest has been travel.
The good news, though, is that we’re not that far away from a real recovery – in travel and for the world.
When the Treasury Department first reported on airline subsidy payouts under the CARES Act I was shocked to learn that 96 airlines were receiving payroll support grants. Who knew there were 96 airlines?
The Treasury Department wasn’t done yet, and there were still a couple of billion dollars to hand out. This week they updated their report, and they’ve committed $24,157,445,417 out of an appropriated $25 billion in payroll support grants, and funds are going to 287 airlines. Who knew there were 287 airlines?
Republic Airways flies for American Airlines, Delta, and United. The federal government agreed to provide Republic with $206 million in CARES Act payroll subsidies.
Airlines taking these funds can not furlough any employees through September 30. They’ve reportedly done it anyway.
A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
They claim they can offer “no cases of COVID-19 contamination” through “100 percent monitoring of people and goods before boarding” and strict health protocols. There are great protocols, but there are two problems that are stoppers.
Air Canada, along with other Canadian airlines, hasn’t been refunding tickets when they cancel flights. The Canadian government has backed them, though for flights to or from the U.S. it’s a clear violation of U.S. law.
Telling customers they can only have a voucher, to use later, is effectively an interest-free loan (they hold onto the money until they earn it later) and a risky one (risk that the customer will have an opportunity to fly, and that the airline will still be in business).
The Trump administration is reportedly considering a domestic travel “Explore America” tax credit that would refund 50% of up to $8000 per household in air, hotel, rental cars and even event tickets and restaurant spend as long as you’re at least 50 miles away from home.
I would love for other people to cover $4000 of my travel expenses. But the idea is nuts.
A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
No shows have been huge throughout the pandemic, which is odd, especially during challenging economic times you’d think people would cancel their trips to retain flight credit.
Interestingly one airline is doing something about no shows, by taking a detour to the past. For tickets booked before June 10, for travel July 1 – September 15, passengers have to contact Emirates to reconfirm their flight 21 days prior to departure.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
