Relief Bill for Pandemic-Battered U.S. Airlines Stalls
Washington (dpa) - A proposed relief deal aiming to prevent US airlines from implementing massive job cuts stalled in the House of Representatives on Friday.
House Speaker Nancy Pelosi said the Republicans blocked consideration of the bill, but that efforts would continue to secure relief for the industry.
"Republicans blocked the House from delivering urgent relief for tens of thousands of airline workers standing on the brink of having their livelihoods ripped away," Pelosi said in a statement.
Pelosi had earlier in the day promised additional support for pandemic-battered airlines and urged carriers to hold off on lay-offs.
"The massive furloughs and firings of America's airline workers jeopardize the livelihoods of tens of thousands and threaten to accelerate the devastating economic crisis facing our nation," Pelosi, a Democrat, said in a statement.
"Today, I am calling upon the airlines to delay their devastating job cuts as relief for airline workers is being advanced in Congress."
She said lawmakers would provide more aid for airlines through a "comprehensive negotiated relief bill" or "bipartisan standalone legislation."
Airline shares had jumped on the announcement.
On Thursday, American and United airlines started furloughing tens of thousands of employees after the Payroll Support Program (PSP) for airlines expired.
The federal aid package, passed in March, prohibited job and pay cuts.
The aviation industry, which continues to grapple with weak demand due to the coronavirus outbreak, has been asking lawmakers and the White House for an additional 25 billion dollars to protect jobs until March.
Lawmakers on Capitol Hill have so far failed to agree on a new broad-based stimulus deal, with negotiations taking place on and off for months. Key benefits, such as enhanced unemployment insurance and assistance to small businesses, have expired.
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