Strategic Policy

Time is Running Out for Congress to Save Thousands of Airline Jobs

September 30, 2020

WASHINGTON, September 30, 2020 – With under 12 hours left before the Payroll Support Program expires for U.S. airline employees, A4A President and CEO Nicholas E. Calio issued the following statement:

The clock is ticking and time is quickly running out for Congress to extend the effective and successful Payroll Support Program (PSP) that has kept critical frontline airline employees on the job and off unemployment. PSP expires today. Tomorrow, tens of thousands of airline workers will be furloughed if the program is not extended.

We appreciate the efforts of Speaker Pelosi and Secretary Mnuchin as they continue to negotiate a comprehensive relief package for our country. We were pleased to see Secretary Mnuchin call on Congress “to extend the Payroll Support Program so we can continue to support aviation industry workers as our economy reopens and we continue on the path to recovery.” His comment came as the Treasury Department issued loans that were part of the CARES Act which became law in March.

The CARES Act recognized that in order to save jobs and support general business operations, Congress needed to provide both payroll support and loans. One does not cover the other. Currently, that essential payroll support component expires at midnight tonight. Regardless of the loans announced by Treasury yesterday, without funds dedicated specifically to payroll (through the PSP), airlines will have to take action to address the loss of payroll funds.

To be absolutely clear, furloughs are inevitable without a PSP extension. All of which says to Congress and the Administration: ACT TODAY!