[US] Airlines will take part in Senate oversight hearing

On December 3, an aviation trade group said that US airlines will take part in a Senate oversight hearing this month on the industry. Lawmakers are expected to question executives about how carriers used pandemic-related federal aid, staffing issues and other matters, Yahoo! Reports.

The Senate Commerce Committee has invited the chief executives of seven major US airlines to testify at the December 15 hearing.

Industry trade group Airlines for America (A4A) said in a statement that "the U.S. airlines look forward to participating" however it did not specify whether CEOs would testify, as requested by Democratic Senator Maria Cantwell, the committee's chair.

Senator Cantwell has invited the CEOs of American Airlines, Delta Air Lines, Southwest Airlines, United Airlines, JetBlue Airways, Alaska Airlines and Spirit Airlines to appear, according to Reuters.

A4A said the carriers look forward to continuing to work with Senator Cantwell and Senator Roger Wicker, the committee's top Republican, "on the issues facing the U.S. airline industry."

"I would encourage them to show up," Senator Cantwell told Reuters on Wednesday of the CEOs. "I think it is bad faith not to show up. ...The public deserves to know some answers."

The Senator added, "we're going to do our oversight role because this was a lot of money." Officials said that many of the invited CEOs are expected to be in Washington on the day of the hearing to take part in an A4A meeting.

US airlines and carriers across the world were seriously hurt by reduced business and tourist travel during the COVID-19 pandemic. Beginning March 2020, Congress approved three rounds of taxpayer bailouts totalling $54 billion to cover the majority of airline payroll costs until September 30, 2021, as a result of the pandemic’s impact.

Lawmakers are questioning whether voluntary employee buyouts offered by airlines, despite receiving payroll assistance, caused operational problems at some carriers that have resulted in the cancellation of hundreds of flights in recent months.

The leaders of the U.S. House of Representatives Transportation Committee have separately asked A4A to answer questions about the government payroll aid that the carriers received.

Democratic Representative Peter DeFazio, the committee's chairman, and the panel's top Republican, Representative Sam Graves, reportedly asked A4A to answer questions about staffing reductions made despite taxpayer assistance.

In a letter made public on December 2, DeFazio and Graves noted that questions have been raised about disruptions at two major US carriers in recent months and asked whether that is the result of "a shortage of workers in key operational areas" despite the aid from Congress.

"We expect airlines to take whatever measures are available to ameliorate any short-staffing issues and begin to address longer-term workforce shortages," the congressmen wrote.

Southwest Airlines and American Airlines have had high-profile issues resulting in the cancellation of hundreds of flights, over recent months.

A4A said COVID-19 cut air travel demand by as much as 96 per cent during the early stages of the pandemic in 2020.

"The industry was in survival mode, and the (assistance programme) was critical to ensuring U.S. airline employees remained on the job, ready to go and able to continue providing essential services," the group said.

It added that "the operational disruptions that some carriers have experienced are wholly unrelated to the federal support."

Airlines receiving government assistance were not allowed to issue involuntary layoffs or cut worker pay. They also had to limit executive compensation and halt share buybacks and dividend payments.

Source: Yahoo!

(Quotes via original reporting)

On December 3, an aviation trade group said that US airlines will take part in a Senate oversight hearing this month on the industry. Lawmakers are expected to question executives about how carriers used pandemic-related federal aid, staffing issues and other matters, Yahoo! Reports.

The Senate Commerce Committee has invited the chief executives of seven major US airlines to testify at the December 15 hearing.

Industry trade group Airlines for America (A4A) said in a statement that "the U.S. airlines look forward to participating" however it did not specify whether CEOs would testify, as requested by Democratic Senator Maria Cantwell, the committee's chair.

Senator Cantwell has invited the CEOs of American Airlines, Delta Air Lines, Southwest Airlines, United Airlines, JetBlue Airways, Alaska Airlines and Spirit Airlines to appear, according to Reuters.

A4A said the carriers look forward to continuing to work with Senator Cantwell and Senator Roger Wicker, the committee's top Republican, "on the issues facing the U.S. airline industry."

"I would encourage them to show up," Senator Cantwell told Reuters on Wednesday of the CEOs. "I think it is bad faith not to show up. ...The public deserves to know some answers."

The Senator added, "we're going to do our oversight role because this was a lot of money." Officials said that many of the invited CEOs are expected to be in Washington on the day of the hearing to take part in an A4A meeting.

US airlines and carriers across the world were seriously hurt by reduced business and tourist travel during the COVID-19 pandemic. Beginning March 2020, Congress approved three rounds of taxpayer bailouts totalling $54 billion to cover the majority of airline payroll costs until September 30, 2021, as a result of the pandemic’s impact.

Lawmakers are questioning whether voluntary employee buyouts offered by airlines, despite receiving payroll assistance, caused operational problems at some carriers that have resulted in the cancellation of hundreds of flights in recent months.

The leaders of the U.S. House of Representatives Transportation Committee have separately asked A4A to answer questions about the government payroll aid that the carriers received.

Democratic Representative Peter DeFazio, the committee's chairman, and the panel's top Republican, Representative Sam Graves, reportedly asked A4A to answer questions about staffing reductions made despite taxpayer assistance.

In a letter made public on December 2, DeFazio and Graves noted that questions have been raised about disruptions at two major US carriers in recent months and asked whether that is the result of "a shortage of workers in key operational areas" despite the aid from Congress.

"We expect airlines to take whatever measures are available to ameliorate any short-staffing issues and begin to address longer-term workforce shortages," the congressmen wrote.

Southwest Airlines and American Airlines have had high-profile issues resulting in the cancellation of hundreds of flights, over recent months.

A4A said COVID-19 cut air travel demand by as much as 96 per cent during the early stages of the pandemic in 2020.

"The industry was in survival mode, and the (assistance programme) was critical to ensuring U.S. airline employees remained on the job, ready to go and able to continue providing essential services," the group said.

It added that "the operational disruptions that some carriers have experienced are wholly unrelated to the federal support."

Airlines receiving government assistance were not allowed to issue involuntary layoffs or cut worker pay. They also had to limit executive compensation and halt share buybacks and dividend payments.

Source: Yahoo!

(Quotes via original reporting)