Representatives Cohen, Watson Coleman and Garcia Insist Airline Bailout include Protections for Consumers, Labor, Small Business and the Environment

WASHINGTON – Congressman Steve Cohen (TN-09), a senior member of the House Transportation and Infrastructure's Aviation Subcommittee, today joined Congresswoman Bonnie Watson Coleman (NJ-12) and Congressman Jesus "Chuy" Garcia (IL-04) in writing to House and Senate leaders negotiating a possible airline bailout urging them to include consumer and other protections in any deal.

The letter comes a day after Airlines for America (A4A), a trade association representing carriers like United, American and Delta, released its proposal for a $54 billion bailout package to protect the industry in response to the coronavirus pandemic. The airlines' plan calls for $29 billion in direct grants, $25 billion in loans, and tax breaks to help the carriers deal with economic damage inflicted on their industry by the pandemic.

See their letter here.

"The coronavirus is severely hurting our economy, and some financial assistance may be needed for some of our most affected industries, such as aviation and tourism," said Congressman Cohen. "But the larger public interest must be protected, especially considering the way some major airlines have dealt with recent soaring profits. Any infusion of money to the airlines must have strings attached – including new rules to prohibit consumer abuses like unfair change and cancellation fees; protections for front-line workers like flight attendants, pilots, and airport workers; special consideration for our smaller, regional carriers not represented by the major trade associations; medium-sized airports, like Memphis International Airport; and the development of long-term strategies and targets to reduce the carbon footprint of the airline industry. The new money should not be used to buy back stock or provide executive bonuses. We should also take into consideration that the industry can borrow at extraordinarily low interest rates to meet its needs."

"As we begin to deal with the toll COVID-19 will take economically, it's obvious that we'll need to offer support across a number of industries, aviation in particular. But what we cannot allow is a handout of taxpayer money without clear protections for the consumers who rely on these companies, and the workers at every level who keep them in business," said Rep. Watson Coleman. "As we look to build the next package of stimulus funds, we want to make sure American families are at the front of everyone's minds. That's a simple and critical step."

"We should absolutely reject any blank-check bailout for the airline industry without making sure the money is first spent on workers who need it most -- flight attendants, pilots, and airport workers including contract workers like cabin cleaners, wheelchair attendants, security officers, and baggage handlers," said Rep. Chuy García. Airlines spent 96 percent of their free-cash-flows for the last 10 years to pad shareholder pockets. Any money we hand over must be strictly conditioned. They don't deserve a blank-check bailout. Any relief package must include strong guarantees to protect jobs, pensions, and benefits for all workers and include strong limits on lobbying costs, executive pay and share buybacks."

In November, Congressmen Cohen and Garcia introduced the Forbidding Airlines from Imposing Ridiculous (FAIR) Fees Act that would rein in some of the airlines' most egregious fees and make them reflect the actual cost of providing services.