President Trump spoke at a White House briefing, expressing support for additional funding for the US Airline industry. Stocks in airlines rose on the news prior to the stock market opening. It bodes well for the airlines, plus it also might help many in the airline industry keep their jobs longer.
The airline industry has been hit hard by the coronavirus pandemic and the resulting travel restrictions. The President indicated there was bipartisan support for helping the airlines further.
International travel has been stymied due to European bans on American travelers. Some Caribbean and Latin America nations are reopening to American travelers. However, it’s not enough to save the airline industry and jobs.
Trump Wants to Give Additional $25 Billion to Airlines
Will More Aid Save US Airline Industry Jobs?
“We don’t want to lose our airlines. If they’re looking at that, whether they’re Republican or Democrat, I’d be certainly in favor. We can’t lose our transportation system” President Trump explained in the briefing.
In March, Congress provided $25 Billion for U.S. carriers in the $2.2 Trillion CARES Act. That money was set aside on the condition that the airlines would not lay off employees through September 30th. This new bipartisan proposal (supported by Trump) would see an extension of those protections through the end of March 2021.
Trump said he may use an executive order to singularly take action, if Congress can’t reach a consensus on a new coronavirus stimulus package.
Final Thoughts
The US airline industry directly employs more than 750,000 employees. Indirectly, the economic impact continues to jeopardize the jobs of millions globally who are involved in the industry.
This is one of the reasons President Trump wants to give an additional $25 Billion to airlines, especially heading into the election season. Jobs means votes in most times.
People need a reason to fly again. Perhaps the government could look at providing incentives directly to consumers to travel, if not just domestically. That is the thought behind the Explore America travel credit, which appears to be fading in support.
Do you agree that the government should provide an additional $25 billion to the airlines to prop up the industry and potentially save jobs over the next several months? If not, what steps do you think the government should take if any?
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