Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Senator asks airlines about worker shortages after billions in U.S. bailouts

Stock MarketsJul 16, 2021 06:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: U.S. Senator Maria Cantwell (D-WA) speaks during a Senate Finance Committee hearing on the IRS budget request on Capitol Hill in Washington U.S., June 8, 2021. REUTERS/Evelyn Hockstein/Pool

By David Shepardson

WASHINGTON (Reuters) -The chair of the U.S. Senate Commerce Committee has asked the chief executives of six airlines including American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV) and JetBlue Airways (NASDAQ:JBLU) to explain reported worker shortages despite receiving billions in pandemic bailouts.

Congress approved three separate rounds of taxpayer funding totaling $54 billion to pay much of U.S. airlines' payroll costs through Sept. 30 as a result of COVID-19 - as well as $25 billion in low-cost government loans.

Senator Maria Cantwell, a Democrat, sent the airlines letters on Friday asking for answers to detailed questions about "recent reports of workforce shortages, flight cancellations, and delays, creating havoc and frustrating consumers as more Americans resume travel."

The Transportation Security Administration said traffic hit almost 2.2 million passengers on Sunday, the highest daily total since February 2020.

In the letters, Cantwell said at best each airline "poorly managed its marketing of flights and workforce as more people are traveling, and, at worst, it failed to meet the intent of tax payer funding and prepare for the surge in travel that we are now witnessing."

Airlines were not allowed to issue involuntary layoffs or cut worker pay as part of government assistance.

Cantwell asked the airlines, which also included Republic Airways and Allegiant Airlines, for answers about workforce management, if they have exhausted all U.S. payroll assistance and steps to address anticipated or current labor shortages due to increased consumer flight demand this year.

American Airlines in June said it would cancel around 1% of its flights in July, while Southwest canceled hundreds of flights last month after computer and weather issues.

Southwest said it was the "only major airline to maintain service at every U.S. airport we served prior to the pandemic" and did not layoff or furlough any staff.

"We were staffed for what we’re flying and we’re flying for what we staffed," a spokeswoman said.

American and Allegiant declined comment. Republic and JetBlue did not respond to a request for comments.

Delta pointed to Chief Executive Ed Bastian's comments on Wednesday that "the challenges of getting our airline fully back to the service level our customers expect and deserve is daunting in light of the huge surge in demand that we are experiencing."

Senator asks airlines about worker shortages after billions in U.S. bailouts
 

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.
Comments (7)
Jerry Balentine
Jerry Balentine Jul 18, 2021 3:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the government is the only one responsible for where we are at
Nison Kay
Nison Kay Jul 17, 2021 12:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They lined their pockets, laid off thousands, increased the number of seats while cramming us like sardines, service becoming worse, and paid themselves bonuses. Democrats what do you expect when you give them free money oh I know millions in contributions from the lobbyists for you campaigns. you sicken me.
Steve Austin
Steve Austin Jul 17, 2021 12:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The money was given under the last administration.
Kaveh Sun
Kaveh Sun Jul 16, 2021 10:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
After the loans were forgave, they united, aa, delta laid off thousands of workers. This is a show. The layoffs were outside the bailout window.
Peter Schulze
Peter Schulze Jul 16, 2021 7:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Maybe she should get an basic education on economics . Does she really thinks that all this airline staff just comes back on a phone call ???
Pilot TwoFive
Pilot TwoFive Jul 16, 2021 7:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Democrats or leftists, as they should be called, are dim wits who dont understand the basics of an economy and how the govt continues to destroy ours.
Tony Huynh
Tony Huynh Jul 16, 2021 7:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The bailed out money is approve during Trump term. So are you guys saying that what Trumps doing is Socialism?
Noah Wright
Noah Wright Jul 16, 2021 7:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
there are many policies I have agreed with from trump. however this was not one of them. I didn't like the 2008/2009 bailouts and I hated these too. companies need to prepare for bad times or go bankrupt. that's how a free market is supposed to work
carl mars
carl mars Jul 16, 2021 7:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not sure if you are aware, but Trump does not have unilateral control of the national budget. Do you remember how much he had to go back and forth with Pelosi? Meanwhile, tyrannical democrats are trying to push through trillions of partisan spending by removing checks/balances such as the filibuster. So yes, Trump was president in 2020, but much of the economic damage and issues that arose budgetarily during the pandemic were due to democratic policies/proposals. Democrats were in control of the house in 2020 (which was in control of the budget proposals), and lost 6 house seats during the 2020 election in response. As much as MSM is pushing the marxist agenda, the majority of the US population is against socialism/Marxism. There is a reason even the DNC dumped Bernie twice election cycles in a row.
Noah Wright
Noah Wright Jul 16, 2021 7:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
also believe it or not it's possible to elect an official and not agree with every single decision made. voting for someone doesn't mean live or die by every choice.
carl mars
carl mars Jul 16, 2021 7:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not sure if you are aware, but Trump does not have unilateral control of the national budget. Do you remember how much he had to go back and forth with Pelosi? Meanwhile, tyrannical democrats are trying to push through trillions of partisan spending by removing checks/balances such as the filibuster. So yes, Trump was president in 2020, but much of the economic damage and issues that arose budgetarily afterwards were due to democratic policies/proposals. Democrats were in control of the house in 2020 (which was in control of the budget proposals), and lost 6 house seats during the 2020 election.
charles ck
charles ck Jul 16, 2021 5:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is the part of socialism/ma.rx.ism that they do not teach the leftist pawns. There is more money to be made for these billionaires in government sub,sidies/socialism with cor,rupt government concentrating money into certain businesses than free-market capitalism. Why do you think Bill Gates has been buying up all the farmland in the country, while pushing politicians on global warming...Musk too. Bezos using the USPS for shipping, while taxpayers picking up the tab as USPS loses money shipping pac,kages for Bezos.
charles ck
charles ck Jul 16, 2021 5:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Here, let me answer the question for you MSM: Socialism
John Avenetti
John Avenetti Jul 16, 2021 5:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
🏆winner
 
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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email