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

Published 07/16/2021, 05:14 PM
Updated 07/16/2021, 06:25 PM
© 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.

© 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

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."

Latest comments

the government is the only one responsible for where we are at
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.
The money was given under the last administration.
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.
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 ???
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.
The bailed out money is approve during Trump term. So are you guys saying that what Trumps doing is Socialism?
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.
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.
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.
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.
Here, let me answer the question for you MSM: Socialism
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