(Reuters) – A US House committee on Thursday approved a proposal to give airlines an additional $ 14 billion in salary assistance as part of a broader COVID-19 aid package pushing its way through Congress.
It would be the third round of support for the pandemic-stricken industry. American Airlines and United Airlines have warned about 27,000 leave without extending the current package, which expires April 1.
The House of Representatives Financial Services Committee voted on 29-24 votes to approve the $ 14 billion for airlines and $ 1 billion for contractors to cover payroll through September.
The money will be included in the $ 1.9 trillion COVID-19 bill proposed by President Joe Biden, whose original plan did not include new money for airlines. House Speaker Nancy Pelosi said on Thursday that she expects lawmakers to finalize the legislation based on the bill in late February.
American Airlines said in a statement after the committee voted that the salary support program, which covers workers’ wages and bans job cuts, “has been a lifeline for our team members.”
US airlines burn millions of dollars every day as the pandemic crushes travel demand.
The Air Line Pilots Association, the world’s largest pilots’ union, said the funds “would help prevent the additional financial devastation that would result from the airline industry being forced to renew tens of thousands of workers.”
However, budget airlines Spirit Airlines, Allegiant Travel and Frontier Airlines have said in recent weeks that they plan to resume hiring pilots later this year.
Reuters first reported many details of plans to provide new assistance to US airlines, transit systems, airports and Amtrak passenger railroad.
Reporting by Tracy Rucinski and David Shepardson; Editing by Leslie Adler