With a record number of Americans declined to fly in the fear of the coronavirus, national airlines are ready to receive much of the relief that the Senate has sought in a bill that will soon vote. The Senate bill is also providing assistance to Amtrak, which is seeing a sharp decline in passengers.
The vote came when the Transportation Security Administration screened a record minimum number of passengers on Tuesday-only 279,000. The TSA screened 2.2 million people the same day last year.
Treasury Secretary Steve Munchin has made the current crisis even worse for the aviation industry than on September 11, 2001, and President Trump hoped for a return to normal travel levels. I vowed to help the company.
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“We will help airlines 100%,” Trump said.
The Senate bill provides airlines with the following grants and loans:
- $ 25 billion subsidy to passenger airlines used only for payments to workers by September.
- $ 4 billion subsidy to freight airlines used only for payments to workers by September.
- $ 25 billion in loans or loan guarantees for passenger airlines.
- $ 4 billion loan or loan guarantee for cargo airline.
- $ 3 billion paid to airlines and airport contractors. And
- Expected losses will continue to grow by billions of dollars, so at airports 10 billion dollars.
The law also limits executive compensation and terminations for two years, and prohibits companies from paying dividends or performing share buybacks for at least one year.
Amtrak is also ready to receive assistance as its ridership decreases. The Senate bill provides Amtrak a $ 1.01 billion grant. That is:
- $ 492 million grant to the Northeast Corridor. This means that Acera will continue to operate. And
- A $ 526 million grant to a wide-area national network to “prepare and respond to coronaviruses”
—Chrisvan Cleave and Kathryn Watson contributed to this report.
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