Criticizing Carriers For Buying Back Shares Of Their Own Stock

Democratic lawmakers and some union officials are insisting that any aid to U.S. Airlines to offset losses due to the Coronavirus include protections for workers and consumers.

In a Tweet, Senator Richard Blumenthal (D-CT) said "No blank check industry bailouts."

Assistance for U.S. airlines would be included in a sprawling government relief package being discussed by the Trump administration and congress, according to Treasury Secretary Steven Mnuchin. Many industries are struggling as the Coronavirus has people staying home, and airline travel has decreased dramatically.

CNBC reports that airlines have requested direct grants totalling $25 billion, five times more than they requested in the wake of 9/11. But some Democrats in Congress have been critical of airlines using profits generated by the run up of the stock market to buy back large blocks of shares.

While Democrats and labor unions acknowledge that the airlines did not cause this problem, some say any aid should come with conditions. “We have told Congress that any funds for the aviation industry must come with strict rules,” said Sara Nelson, president of the Association of Flight Attendants, which represents some 50,000 cabin crews at multiple airlines. “That includes requiring employers across aviation to maintain pay and benefits for every worker. No taxpayer money for CEO bonuses, stock buybacks or dividends. No breaking contracts through bankruptcy.”

Sen. Edward Markey (D-MA) said that “any infusion of money to the airlines must have some major strings attached.” He said those should include protections for front-line airline employees like flight attendants, pilots and airport workers. It must also include new rules to “prohibit consumer abuses like unfair change and cancellation fees,” which can run $200 or more.

Airline lobbying group Airlines for America (A4) says that airlines are spending as much as $10 billion per month as cancellations "far outpace" new bookings, and the situation is getting worse on a daily basis.

(Image from file)

FMI: Source report