The Regional Airline Association (RAA) issued the following statement today in response to the Department of Treasury’s Press Release announcing certain details of the Payroll Support Program under the CARES Act, where the Treasury will not require passenger air carriers that will receive $100 million of payroll assistance or less to provide financial instruments and which cites the benefit to the public of maintaining air service.
Secretary Mnuchin further underscored the importance of providing support to workers and businesses across the country, noting, “small and medium-sized passenger aviation businesses are particularly vulnerable to the disruption from COVID-19.”
RAA is encouraged by Treasury’s endorsement of the unique circumstance of small and medium-sized airlines, but emphasizes the distinction between regional airlines and mainline or other ticketing carriers does not center on size alone, but also relates to the nature of the airline’s business model, whether the carrier’s corporate structures allows it to work with equity or warrants or generate free cash to extinguish equity, whether the carrier controls ticketing and pricing, and/or whether the carrier provides Essential Air Service or other service to small and medium sized communities not served by or with limited air service from mainline air carriers.
RAA has had productive communications with Treasury officials, who are working tirelessly to process these grants. Treasury has been very receptive to learning more about the business characteristics of regional airlines and the crucial role regional airlines play in serving small and rural communities. RAA will continue to serve as a committed resource for Treasury, demonstrating why the unique characteristics of all regional airlines merit consideration and why their employees, too, need the benefit of these Worker Relief grants.
RAA President Faye Malarkey Black concluded,“We have a wide range of carriers in our organization and are confident the Secretary will work with each, individually, to ensure the Worker Relief grants are handled fairly and equitably and in a manner that does not disconnect smaller communities that get their air service from regional airlines of all sizes.”
