UPDATE 1-U.S airways continue being in ‘dire straits,’ require new govt support -market team

(Updates with hearing underway, lawmaker response)

By David Shepardson and Tracy Rucinski

WASHINGTON, March 2 (Reuters) – The head of a group symbolizing major U.S. passenger airways and a senior union formal manufactured the situation to lawmakers on Tuesday for a third round of federal govt aid, according to testimony noticed by Reuters.

Because March 2020, Congress has awarded passenger and cargo airlines, airports and contractors nearly $90 billion in federal government aid and minimal-price loans, which include two prior rounds of payroll support for U.S. passenger airlines totaling $40 billion.

The $1.9 trillion COVID-19 reduction deal authorized by the U.S. House final 7 days involves a further $14 billion for passenger airlines to retain workers on payrolls for an added 6 months. It awaits motion by the U.S. Senate.

“We are however struggling and in dire straits,” Nick Calio, who heads Airways for The usa, a trade group symbolizing American Airways, Delta Air Strains, United Airlines and other folks, mentioned in testimony in advance of the Dwelling Transportation and Infrastructure’s aviation subcommittee. “We have been hoping it would be greater by now.”

He warned that without the new spherical of guidance tens of countless numbers of aviation personnel will “reduce their positions — or expertise reductions to wages and positive aspects — successful April 1.”

In 2020, U.S. airline passenger site visitors fell by 60% to 368 million travellers, the cheapest because 1984, and claimed pre-tax losses of $46 billion. They go on to burn off “an believed $150 million of money every single working day,” Calio stated.

The recent COVID-19 bill also contains $8 billion for airports and concessionaires and $1 billion for airline contractors.

Joseph DePete, president of the Air Line Pilots Association, explained to lawmakers that “dismal prolonged-term booking commitments and the close to absence of company journey demand is leaving some carriers with much too small certainty to reactivate and retrain furloughed or usually inactive pilots.”

Agent Peter DeFazio, who chairs the Transportation committee, reported he is “hoping by September 30 we are not heading to will need a further extension” of airline payroll assistance. (Reporting by David Shepardson and Tracy Rucinski Enhancing by Gerry Doyle and Dan Grebler)