State aid for US airports and manufacturers approved, airlines next?

Shutterstock / Anton_Ivanov

On February 10, 2021, US lawmakers approved a plan to provide financial aid to the country’s airports and aviation manufacturers. Airlines are still waiting.

On February 10, 2021, the United States House Transportation and Infrastructure Committee approved $8 billion to US airports and $3 billion for a temporary payroll support program for aerospace manufacturers. The program would provide manufacturers a 50% government subsidy to cover pay, benefits and training for employees at risk of being furloughed.

However, the US airlines are still waiting as the final vote on the $14 billion in payroll support for airlines and $1 billion for contractors was delayed until February 11, 2021.

On February 3, 2021, American Airlines (A1G) (AAL) announced it would send furlough notices to about 13,000 employees as a second round of government’s payroll aid was expiring. Earlier in January 2021, United Airlines also sent furlough warnings to 14,000 staff members.

In December 2020, the US airlines received a $15 billion state aid that helped the carriers to recall furloughed workers and pay the employee wages and benefits, avoiding layoffs until March 31, 2021. After receiving the aid, the airlines called back more than 32,000 workers who were furloughed in October 2020.


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