Aid to Airlines Inserted Into $1.9 Trillion Relief Bill

Draft legislation from congressional committees were made public for the  Democrats’ big COVID-19 relief package. The House Financial Services Committee revealing plans to provide $14 billion in aid to airlines for payroll costs, along with $1 billion for airline contractors.

The additional “Payroll Support Program” money for the airline industry counts as the “first surprise” as Democratic-run committees begin the work of writing the relief bill, said Height Capital Markets analyst Hunter Hammond. 

“We are a bit surprised at the inclusion of airline aid, given that it was not a part of the Biden American Rescue Plan, but this should be a reminder to investors (and ourselves) of what we wrote last month – that the plan Congress approves will be similar to, but not a carbon copy of, the Biden plan,” Hammond said.

Draft legislation from another House committee also contained other transportation-related aid, including $8 billion for airports, $30 billion for transit agencies, $1.5 billion to Amtrak and $3 billion for aviation manufacturers’ payroll costs.

Joseph Alba
Mr. Alba was previously Editor of the Airport Press for 12 years covering both local as well as global aviation news. Prior to this, Mr. Alba had Executive positions in Systems Engineering and Marketing with IBM World Trade, and had foreign assignments in the Far East and Latin America earning three Outstanding Achievement Awards. Mr. Alba also directed a new function dealing with Alternate Fuels for Public Service Electric & Gas company in New Jersey and founded a Natural Gas Vehicle Consortium consisting of car company executives and fleet owners, and NGV suppliers in New Jersey. Mr. Alba was a founding partner of ATA, an IT Consulting company which is still active in Central and South America. After leaving the armed forces, Mr. Alba’s initial employee was the U.S. Defense Department as an analyst.

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