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American, Spirit, Southwest Airlines: What happened to the 79 Billion Bailout?

PaulHudson
PaulHudson

Airlines in the United States received over $79 billion in bailout money across three COVID-related bills in 2020-2021 to help them, their employees, and the air travel industry survive the worst of the COVID pandemic. Congress intended this money to go to pilots, flight attendants, and other airline and airport employees to ensure they were paid during the severely depressed demand period and to ensure that the airlines would have the capacity to meet the increased travel demand as soon as the Covid situation improved.

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  1. FlyersRights, a consumer advocacy organization has called for an oversight hearings with airline CEOs plus labor and passenger representatives.
  2. Airlines were given massive federal subsidies to keep public air service strong and reduce COVID infection.
  3. Recent record high cancellations, flight delays, plus airline opposition to some important CDC guidelines call into question whether taxpayer money has been misused by airline management

“American Airlines, Spirit Airlines, and Southwest Airlines, completely failed the American people”

FlyersRights.org president Paul Hudson 

Massive Airline Cancellations

Throughout the summer, airlines have canceled hundreds of flights per day because they did not have enough employees ready to go. On its worst day, Spirit Airlines canceled over half of its scheduled flights.

This is unacceptable, and Senator Maria Cantwell, the Chair of the Senate Commerce Committee, sent a letter on this subject to the airlines in July. FlyersRights.org met with her staff to discuss the issue on September 1st and to propose the solution to the latest of airline abuses.

House Oversight Committee Hearing requested

FlyersRights.org requested committee oversight hearings to force Doug Parker, Gary Kelly, Ted Christie, and other airline CEOs to explain what they did with the COVID relief money and why their airlines have failed to deliver what the law intended.

Oversight hearings should also include passenger representatives and labor representatives. FlyersRights.org proposed a stimulus and social distancing plan that would have kept the airlines profitable, running at a higher capacity during the pandemic, and would have ensured air travel was safer, all at a lower cost than the bailout packages.

FlyersRights.org is the largest airline passenger organization; it advocates for airline passengers before the FAA, DOT, TSA and other government agencies

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About the author

Juergen T Steinmetz

Juergen Thomas Steinmetz has continuously worked in the travel and tourism industry since he was a teenager in Germany (1977).
He founded eTurboNews in 1999 as the first online newsletter for the global travel tourism industry.

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