Earlier today I wrote about whether United might be publicly talking up layoffs to take place as soon as the CARES Act bailout requirements lift as a stalking horse for a second bailout. That may seem far-fetched, after all is the government going to go back to the well a second time after funding U.S. passenger and cargo airlines at $58 billion?
Of course the restriction that airlines cannot furlough employees lifts October 1 – just one month before the Presidential election. The administration isn’t going to want to see mass layoffs then, and Democrats in Congress won’t want to see the loss of union jobs.
While this may have seemed speculative just a few hours ago, the President of airline lobby shop Airlines for America Nicholas Calio testified before the Senate today, and he broached the topic of airlines coming back to Congress for a second bailout. It’s notable that the Airlines for America board includes the CEOs of Alaska, American, Delta, Hawaiian, Southwest, JetBlue and United.
As Ned Russell reports,
“It is our hope this money will be the bridge to the future we need, and we will not have to come back for more," says A4A head Calio on CARES Act funds at Senate aviation hearing.
— Edward Russell (@e_russell) May 6, 2020
U.S. airlines are telling Congress they ‘hope’ not to ‘have to’ come back for money subsidies. That means, of course, that they expect to seek more taxpayer money and they’re beginning to sow the ground now.