Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

American, Southwest, United CEOs to testify before U.S. Senate panel

Stock Markets Dec 08, 2021 06:23PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: American Airlines planes taxi on the tarmac as the skyline of New York City is seen in the background from the JFK International Airport in New York, U.S., November 8, 2021. REUTERS/Eduardo Munoz/File Photo

By David Shepardson

WASHINGTON (Reuters) - The chief executives of American Airlines (NASDAQ:AAL), United Airlines and Southwest Airlines (NYSE:LUV) will testify on Dec. 15 at an oversight hearing before the Senate Commerce Committee on the impact of $54 billion in COVID-19 government payroll support for U.S. airlines.

The hearing will look at "the effect on the airline industry’s workforce, and the effect of airline operational performance on American consumers," according to a committee statement.

American CEO Doug Parker and Southwest Gary Kelly, who are both stepping down in early 2022, will testify, as will United CEO Scott Kirby (NYSE:KEX).

Delta Air Lines (NYSE:DAL) Chief Operating Officer John Laughter also will testify, as will Sara Nelson, president of the Association of Flight Attendants-CWA.

Lawmakers are expected to quiz executives about how carriers used pandemic-related federal aid, staffing issues and other matters.

U.S. airlines and carriers around the world were hard hit by reduced business and tourist travel during the COVID-19 pandemic. Starting in March 2020, Congress approved three rounds of taxpayer bailouts totaling $54 billion to cover much of U.S. airline payroll costs through Sept. 30 of this year as a result of the pandemic.

Nelson said in October that the airline industry "created a COVID-19 relief plan that no other industry got."

Lawmakers want to know if 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 separately have asked industry trade group Airlines for America (A4A) to answer questions about the government payroll aid that the carriers received.

A4A said in a response letter Tuesday, the assistance program "was an overwhelming success... that kept employees on the job with a paycheck, healthcare and retirement contributions." Without it, the group added, "U.S. airlines would have been forced to implement massive layoffs, dramatically reduce service and cancel fleet orders."

(This story corrects headline to show Southwest CEO, not Delta CEO among those testifying)

American, Southwest, United CEOs to testify before U.S. Senate panel
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email