Airlines for America (A4A) has called for US authorities to come up with a $58 billion aid package for what it termed the “unprecedented and debilitating impact”, that Covid19 was having on the sector. Without giving specifics Trump later said his administration would back US airlines.
A4A has called for mix of grants, loans and tax relief to help passenger and cargo airlines cope with the steep decline in traffic as a result of the virus. The request from A4A includes includes $25 billion in immediate grants for 121 airlines and $4 billion for cargo carriers, it also called for a voluntary liquidity facility program that would make the same amounts available to both groups as interest-free, unsecured loans.
The total request from A4A is three time the size of the industry's bailout after the September 11 attacks.
While according to Reuters, US airports are seeking $10 billion in Federal government assistance to help offset losses incurred by the sharp drop in travel due to coronavirus.
In a press briefing US president Trump said that his administration would be backing US airlines “100%”, without giving specifics.
In a statement accompanying the request, A4A said that the US airline sector was having to cope with an extremely fluid situation, “The rapid spread of COVID-19, along with the government and business-imposed restrictions on air travel, are having an unprecedented and debilitating impact on US airlines.
The economic impact on U.S. airlines, their employees, travellers and the shipping public is staggering. This crisis hit a previously robust, healthy industry at lightning speed and we remain concerned that the impacts of this crisis will continue to worsen. This is compounded by the fact that the crisis does not appear to have an end in sight”, said A4A.
Boeing also called for Federal government help, just days after drawing on a $13.5 revolving credit facility, saying the whole aviation sector required support. It called for the US authorities to, “ready short term access to public and private liquidity will be one of the most important ways for airlines, airports, suppliers and manufacturers to bridge to recovery, and we appreciate how the Administration and Congress are engaging with all elements of the aviation industry during this difficult time.”
While US regional carrier, Silver Airway’s, chief executive Steve Rossum called on local, state and federal government officials to provide critical and immediate financial aid required in order for the airline to survive the most dire crisis the industry has ever faced and upon which whose continued operation depends.
In letter sent to; the US Treasury Secretary, the US Transportation Secretary, Florida State Senators Marco Rubio, and Rick Scott , and Florida Representative Debbie Wasserman-Schultz Rossum called for a number of measures to help US aviation.
Rossum called for “significant financial assistance” to commercial airlines in order to continue providing critical air transportation in the face of COVID-19, saying the firm’s passenger bookings had dropped dramatically over the past month and that it was experiencing an even greater and unprecedented decline in forward bookings.