Democrats Allege Federal Monies Misused by Airlines | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-09.23.24

Airborne-NextGen-10.01.24

Airborne-Unlimited-10.02.24

Airborne-AffordableFlyers-10.03.24

Airborne-Unlimited-09.27.24

Tue, Sep 13, 2022

Democrats Allege Federal Monies Misused by Airlines

Of Pots and Kettles

Amidst the worst inflation and highest gasoline prices in U.S. history, imminent food shortages, a looming energy crisis, and a demonstrably avoidable Ukrainian war into which the Biden administration has pumped $54-billion of taxpayer money, Democrat lawmakers are heeding the big picture by prevailing upon the U.S. Treasury Department to launch an investigation into how airlines utilized federal COVID relief funds.

In a letter to the Treasury Department’s deputy inspector general, Congressional Representatives. Carolyn Maloney (Dem. New York) and James Clyburn (Dem. South Carolina) allege U.S. airlines willfully applied federal funds earmarked for the preservation of aviation jobs, the compensation of air carrier industry workers, and the sustainment of scheduled flight operations to buyouts and staff reductions.

The pair wrote: "We are concerned that some airlines have used federal funds obtained during the pandemic to provide buyouts and early retirement packages for pilots, which may be exacerbating a shortage of commercial pilots. As a result of pilot shortages, thousands of flights have been delayed or canceled, wreaking havoc on travel plans for millions of American taxpayers."

Under the provisions of the CARES Act of 2020 and the American Rescue Plan Act of 2021—which together handed out more than $60-billion—air-carriers that accepted relief monies were prohibited from conducting involuntary furloughs or reducing pay rates and employee benefits. Maloney and Clyburn allege three leading U.S. airlines to which COVID relief funds were disbursed each cut substantial shares of their workforces and urged employees to take early retirement.

Maloney and Clyburn surreptitiously criticized airlines, stating: "American taxpayers supported the airline industry during its darkest days at the start of the coronavirus pandemic, when nearly 75% of commercial flights were grounded. Americans deserve transparency into how airlines have used the federal funds they have received."

Parroting an audit from the U.S. Treasury’s Office of Inspector General, Maloney and Clyburn—whose personal net worths are $25-million and $9.34-million respectively—tacitly alleged airlines were afflicted with "pervasive issues,” to include specious payroll calculations that impact the "accuracy of recipient award amounts" received under Congressional mandate. The pair also cited a 2020 report in which the Select Subcommittee on the Coronavirus Crisis claimed the U.S. Treasury Department had allowed aviation contractors receiving full federal payroll support based on pre-pandemic workforce numbers to lay off thousands of workers. No mention was made of the fact that Clyburn chairs subject committee.

Maloney’s and Clyburn’s letter concludes: "The Committees request that you [Treasury Department deputy inspector general] complete a thorough review of the federal funding Treasury has disbursed to airlines to sustain their operations during the coronavirus pandemic, including an accounting for how the funds were disbursed and used by each airline recipient and whether any funds were used for buyouts or staff reductions."

FMI: https://sgp.fas.org/crs/misc/RL30631.pdf

Advertisement

More News

ANN's Daily Aero-Term (10.05.24): Final Approach Fix

Final Approach Fix The fix from which the final approach (IFR) to an airport is executed and which identifies the beginning of the final approach segment. It is designated on Gover>[...]

ANN's Daily Aero-Linx (10.05.24)

Aero Linx: South Carolina Aviation Association (SCAA) The South Carolina Aviation Association is the only state-affiliated group for aviation professionals and enthusiasts. ere are>[...]

NTSB Prelim: Champion 7GCBC

The Wreckage Exhibited Signatures Consistent With A High Angle, Nose Down Impact On September 13, 2024, about 0803 Alaska daylight time (AKDT), a Champion (Citabria) 7GCBC, N8CK, w>[...]

Classic Aero-TV: Scion Helicopter’s Vixen SH-410

From Oshkosh 2024 (YouTube Vedition): The Composite, Carbon Fiber Helicopter Kit Aero-News Network correspondent Rex Alexander saw a new addition to the light helicopter market at >[...]

Airborne 10.02.24: Piper Wing Spar NPRM, Gogo Buys Satcom, Deadstick Drug Bust

Also: Former FAA Contractor Indicted, SpaceX Grounds Falcon, Buh-Bye KC-10, Sustainable Aviation Caucus The FAA has issued an NPRM that will expand the models of Piper aircraft tha>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC