Tag Archives for subsidies.
The Department of Transportation just told airlines they can stop serving dozens of small-town airports as the shutdown drags on. A 47-year “temporary” subsidy program may finally unravel—leaving entire communities without air service overnight.
Delta Air Lines will pay $8.1 million to settle charges that it misused Covid-era government subsidies.
For Parker and American, this was the heist of a lifetime. He spent all his time in D.C. lobbying and Nelson played a key role. Without Nelson’s cover with the narrative about workers, and bringing along Democratic leadership, it would never have worked. Together, they robbed the American people of $54 billion in direct cash, $25 billion in subsidized loans, plus money for airline contractors and tax subsidies as well.
The Essential Air Service program was created in the late 1970s as a temporary measure to soften the blow of deregulation. It provided for a ’10 year transition’ period in which small community service could receive subsidies. And it’s the perfect example of the old axiom that there’s nothing as permanent in life as a temporary government program. The program was supposed to end in 1988.
Instead, the Senate’s FAA reauthorization bill includes a tripling of funding for the program going forward.
There’s been a tremendous increase in interest in Brisbane, a major Australian city near the Gold Coast. About a year and a half ago, United Airlines launched a non-stop from San Francisco – and then in the past two weeks we got announcements of new Brisbane service from both American Airlines (Dallas) and Delta (Los Angeles). That will mean a huge increase in seats between the U.S. and Brisbane. Competition is going to get bloody. How can this make sense?
When Scott Kirby criticizes the government what he wants is more government. And specifically, more government that benefits him and his airline.
The Senate held a hearing full of mock outrage where Senators got to ask ill-informed questions of airline CEOs, and those CEOs got to give disingenuous answers about nearly $100 billion in taxpayer bailouts received during the pandemic.
There’s some truth in the grandstanding, but legislators should move beyond that and take real steps that would improve air travel in America.
Several airlines have notified employees that the federal government will require to be vaccinated with no alternative for regular tests instead. That’s because the Biden administration has decided to treat airlines as federal contractors, and subject to their order that government contractors must have 100% vaccination among employees, rather than companies with 200+ employees under a pending OSHA rule.
American Airlines CEO Doug Parker did a live chat with the Washington Post on Tuesday and faced mostly softballs – but since it’s the DC local paper government policy is at the forefront.
So when they’re talking about operational problems customers face, what viewers want to know is whether Congress got its money/s worth for subsidies to airlines during the pandemic.
After 10 p.m. Friday night the House dropped their 600 page infrastructure reconciliation package. I haven’t read the whole thing yet, just the 41 page summary.
U.S. airlines last week increased their commitment to use biofuels. It’s no wonder why
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 »
