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Senate Democrats Propose $40 Billion Bailout to Airlines, Contractors

Senate Democrats Propose $40 Billion Bailout to Airlines, Contractors

Democratic U.S. legislators Monday suggested giving struggling U.S. carriers and contractors $40 billion in cash subsidies that would not have to be paid back; however, they require significant new environmental, labor and other situations.

Senate Democrats Propose $40 Billion Bailout to Airlines, Contractors

The U.S senate bill, which commits $2.5 trillion in stimulus and assistance to the U.S. economy in the wake of the coronavirus pandemic, would award $37 billion in subsidies to airways and $3 billion in grants to employees of ground-support and catering contractors.

Airlines for America, a trade organization representing significant carriers, told Congress in a term sheet Monday that if the passenger and cargo carriers got $29 billion in subsidies, it would “allow us to save millions of jobs and preserve service to every community currently served in the U.S. for a time frame.”

Republicans and Democrats were still debating Monday to succeed in agreement on a far-reaching coronavirus stimulus package, along with the airline aid, after failing to strike a deal over the weekend.

Republicans have opposed providing bailouts to the passenger and cargo carriers, proposing to support in the form of $58 billion in loans and saying the government might demand stock, options or different equity as a part of those loans.

The House bill would also put aside $1 billion to remove high-polluting airplanes. It would limit CEO pay at no more than 50 times the median pay of staff and bar stock buybacks.