US House Committee approves $ 14 billion more for airlines hit by pandemic

ARCHIVE PHOTO: A lone customer seeks assistance at an American Airlines check-in counter at Washington’s Reagan National airport during the coronavirus outbreak (COVID-19) in Washington, USA, April 29, 2020. REUTERS / Kevin Lamarque / Photo file

(Reuters) – A U.S. House committee on Thursday approved a proposal to give airlines another $ 14 billion in payroll assistance as part of a broader COVID-19 aid package that is underway in Congress. .

It would be the third round of support for the industry affected by the pandemic. American Airlines and United Airlines have warned of about 27,000 licenses without an extension to the current package that expires on April 1.

The Chamber of Deputies’ Financial Services Committee, by 29 votes to 24, approved $ 14 billion for airlines and $ 1 billion for those hired to cover payroll through September.

The funds will be included in the $ 1.9 trillion COVID-19 relief bill proposed by President Joe Biden, whose initial plan did not include new money for airlines. House Speaker Nancy Pelosi said on Thursday that she expects lawmakers to complete legislation based on the bill by the end of February.

American Airlines said in a statement after the committee’s vote that the payroll support program, which covers employee salaries and prohibits job cuts, “has been a lifeline for our team members.”

US airlines are spending millions of dollars every day while the pandemic is crushing travel demand.

The Air Line Pilots Association, the world’s largest pilots’ union, said the funds “would help prevent the additional financial devastation that would result from the aviation industry being forced to lay off tens of thousands of workers.”

Low-cost airlines Spirit Airlines, Allegiant Travel and Frontier Airlines, however, have said in recent weeks that they plan to resume hiring pilots later this year.

Reuters reported for the first time many of the details of plans to provide new assistance to U.S. airlines, transit systems, airports and passenger railroads.

Reporting by Tracy Rucinski and David Shepardson; Leslie Adler edition

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