US airlines seek billions in state aid
US airlines are seeking federal government financial assistance which could exceed $50 billion to help recover from the sharp downturn in travel demand.
Airlines for America called for $25 billion in federal grants for airlines to see them through until the end of the year.
A4A is also requesting an additional $25 billion in loans or loan guarantees for passenger airlines.
The trade group says airlines also want excise tax relief.
The Trump Administration has said it will support the airline industry although it hasn’t disclosed any specifics.
Delta Air Lines and American Airlines both said they are in discussions with government officials over financial aid.
"We’re going to be in a position to help the airlines very much. We’ve told the airlines we’re going to help them," President Trump said.
The current situation is having an ‘unprecedented and debilitating impact’ on US airlines, A4A said.
"Cancelations are spiking, and for US carriers those cancelations are outpacing new bookings. The economic impact on US airlines, their employees, travelers and the shipping public is staggering."
"US carriers are in need of immediate assistance as the current economic environment is simply not sustainable. This is compounded by the fact that the crisis does not appear to have an end in sight," the trade group added.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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