Nicholas E. Calio, CEO and President of Airlines for America (A4A), the leading organization advocating on behalf of U.S. airlines, released a statement today applauding the federal government's authorization of the new $25-billion Payroll Support Program, as allocated under the $2.2 trillion CARES Act.
"On behalf of the leading U.S. airlines and 750,000 employees, we are grateful for the work of the Trump Administration...and members of the Senate and the House for their efforts to provide Direct Payroll Assistance funds," wrote Calio. The funding, "will help protect the jobs of pilots, flight attendants, mechanics, gate agents and other people who need to pay rent and mortgages, and put food on the table for their families during the COVID-19 pandemic."
This assistance, he said, would allow those 750,000 staff members to remain on airlines' payrolls through the end of September 2020, which avoids sending them to the ranks of a record number of Americans currently filing for unemployment, as well as preserving the jobs of an entire workforce upon whose valuable skills the aviation industry relies.
As Calio put it, "Our employees are the backbone of the industry and our greatest resource."
In addition to the approximately 750,000 who are directly employed by the airlines, roughly 10 million more American jobs are supported by the aviation industry, said Calio.
To drive home the gravity of the current situation, Calio made mention of several startling facts about the pandemic's severe and unprecedented effects on the U.S. air travel industry.
Prior to this global emergency, he said, U.S. carriers had been well-positioned to transport a record number of travelers this year, as they were previously flying 2.5 million passengers and 58,000 tons of cargo each day.
Since the COVID-19 crisis has taken hold-leading to today's 95 percent of Americans living under stay-at-home orders-passenger volume has dwindled by 97 percent, marking levels not seen since 1954. Flight cancellations now far outpace bookings, and airlines have grounded 2,240 aircraft, suspended the majority of their routes and all but discontinued international flights.
Calio said that, under these conditions, major U.S. airlines are burning through their cash reserves at a rate of $10 to $12 billion per month, despite having implemented all feasible cost-cutting tactics, furloughing workers, closing airport lounges, offering early retirements and reducing executive compensation.
Given the unprecedented situation in which airlines now find themselves, Calio expressed that A4A members are, "deeply appreciative for the Payroll Support Program, which is an important first step in a long path toward recovery for an industry that remains critical for connecting our country and driving economic growth."
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