Airlines and airports are set to receive the financial support they requested in the aid package drafted by lawmakers and the administration, according to a CNN review of the document.
The package includes $32 billion in grants for wages and benefits to aviation employees. The administration must pay its first installment to employers within 10 days of the bill becoming law. The assistance includes $25 billion for passenger airlines, $4 billion for cargo airlines, and $3 billion for industry contractors, such as those who handle catering, baggage, ticketing, and aircraft cleaning.
The bill also provides $25 billion for passenger airlines and $4 billion for cargo airlines in the form of loans or loan guarantees.
In exchange for the assistance, companies that receive the assistance are barred from making furloughs, pay cuts, or stock buybacks, and from issuing dividends to investors, through September. It also institutes limits on executive compensation.
Airlines may also be required to operate routes they would otherwise like to cancel because of low ridership or profitability. Under the bill, the Transportation Department can require air carriers continue service on routes, particularly for the “needs of small and remote communities and the need to maintain well-functioning health care and pharmaceutical supply chains, including for medical devices and supplies.”
It would also provide a tax holiday, allowing airlines to keep more of the ticket price customers pay.
Cash-strapped airports could also receive government assistance of up to $10 billion, including at least $100 million for general aviation airports, which serve smaller planes rather than scheduled airline service.
The bill requires a report to Congress on some of the payments by November.