Trump administration economic adviser Larry Kudlow said he believes the president will announce an aid package to save the airlines from laying off tens of thousands of workers on October 1, when restrictions from the previous stimulus package run out. Trending Now Coronavirus Outbreak
The airline industry has been crippled by the coronavirus pandemic and accepted a combined $50 billion in grants and loans from the CARES Act stimulus package in March. But one of the provisions was that carriers could not lay off any employees for six months. That expires on Oct. 1, and the industry is poised for what could be 70,000 layoffs.
But Kudlow believes President Trump will act in time.
“If they need additional assistance, we stand ready to work with them to hammer out additional packages,” Kudlow told Bloomberg TV in an interview.
Airlines for America (A4A), the industry’s lobby group, said it does not expect air travel to return to pre-pandemic levels until 2024. A4A CEO Nicholas Calio, union leaders, even United CEO Scott Kirby have all lobbied Congress for the additional aid.
But lawmakers have been bogged down by talks on an overall second aid package.