The $900 billion stimulus package includes a provision of $15 Billion for the airline Industry. The good news is that it is a “clean extension” meaning it could be extended.
Finally! After 10 long months, the U.S. Congress has a deal on a new stimulus package. Airlines get what they need although, $10 billion less than requested. Furthermore, Air Carriers who take the money need to reinstate all furloughed staff laid-off after Oct. 1.
Also, there are further air service requirements to keep flights going at every airport across the nation. Small cities like Bozeman, Montana, and Reno, Nevada, which flights have ended, need to return for airlines to ask for additional funding.
The requirements of the CARES ACT have been extended until March 31st when the package expires without Congressional approval.
Even More, Executive compensation and stock buybacks became extended along with stock repurchases (buybacks) delineated on the first CARES ACT.
Hotels are getting a helping hand too!
An unexpected industry that became targeted in this bill was the Hotel Industry. From the Paycheck Protection Program (PPP), Congress flagged $280 million to reopen loans. We can thank the top hotel trade groups for their help.
Checks are coming too! Although less than the first
With the same requirements as the first, people will receive around $600 and an additional $300 per week on supplemental jobless benefits. Those checks can be received as soon as next week.
What is out from the first bill?
On the other hand, not everything is roses. Out of the first bill is the liability protections against coronavirus exposure. However, 40 states have instituted some liability protection, so while there is no protection at the federal level, they still enjoy protections.
When could we expect the bill passed?
Ladies and Gentlemen, fasten your seatbelts and place your seats along with your tray tables in the upright position. We could see the vote as soon as this evening.
It was about time!
When Congress puts their mind to it, they can be invincible. However, after 10 months of suffering, they are coming to the rescue, maybe a bit too late?
Congress could have done this during the time it wasted three stimulus packages for the people and businesses of the United States.
While there is enough criticism, I can say “a Great Job, Congress!“
What are your thoughts on the new stimulus package for the airline industry? Please contact Alex Martinez Rivera below.
Featured Image: Unsplash.