Airlines, cruises, hotels: Congress may help some industries hard-hit by coronavirus
Economic support for airlines, cruise ships, hotels and other industries being adversely affected by the spread of the coronavirus could be included in Congress’s next legislative response to the global pandemic, according to senior congressional aides familiar with the discussions.
Less than two weeks after passing an $8 billion emergency funding bill, and as lawmakers complete negotiations on a second measure aimed at helping individuals by providing additional access to COVID-19 tests and mandatory paid sick leave, members of Congress are now discussing how to help hard-hit businesses in a third relief package.
“It’s certainly something that’s on the table,” said one congressional source familiar with negotiations, referring to industry support, “but what that looks like and what industries would receive assistance is very much up in the air.”
Sources said leaders of the Democratic-controlled House and Republican-controlled Senate were currently in the process of soliciting member recommendations for what should be included in the next relief bill.
President Donald Trump and National Economic Council director Larry Kudlow on Monday continued to make clear the administration was prepared to offer economic relief for the airline industry, which is anticipating a financial crisis as more flights are grounded or severely underbooked by passengers fearful of contracting the coronavirus during travel.
A statement on Monday from 60 of the world’s largest air carriers predicted up to $113 billion in revenue losses for the industry.
“We are going to back the airlines 100 percent,” Trump said at an afternoon press briefing. “It’s not their fault, it’s nobody’s fault … and we are going to be in a position to help the airlines very much.”
Kudlow earlier told reporters that the administration was paying close attention to what airlines specifically needed by way of economic assistance.
“We don’t see the airlines failing, but if they get into a cash crunch we’re going to try to help them,” said Kudlow, adding that the administration has heard directly from “lots” of airlines about needing federal aid.
“We’re in touch about their balance sheets and their cash flow,” he said.
Neither Trump nor Kudlow made reference to a request from Airlines for America, the airline industry’s most powerfur lobbying group, for nearly $50 billion in a combination of federal grants and loans for passenger airlines and air cargo carriers, plus federal tax relief.
Other industries are also expected to make requests for assistance in the days and weeks ahead.
Airports Council International, which represents airports, announced on Monday that commercial airports were now on track to lose a total of $8.7 billion in 2020.
Major cruise ship companies are suspending operation for weeks after the coronavirus outbreak, with administration officials among those urging older Americans not to go on cruises for the time being.
Hotels, restaurants and other businesses in the hospitality sector are also struggling as more Americans are staying home to contain the spread of the virus.
On Capitol Hill, Democrats initially balked at the prospect of providing economic support to industries before sending adequate financial help to struggling individuals and families.
“I really don’t think we should be in the business of bailing out industries,” said Rep. Jim Himes, D-Conn.
House Transportation and Infrastructure Committee Chairman Peter DeFazio, D-Ore., was particularly dismissive of measures to help airlines and cruise lines.
“You know, the last time I checked, they were very profitable,” DeFazio said of the airlines, “so I would say it’s premature to be thinking about bailing them out.”
DeFazio said cruise lines “aren’t American, they don’t pay taxes in the United States of America. If they want to reflag their ships … hire U.S. crews and pay U.S. wages and pay U.S. taxes, then maybe.”
Republicans, including Trump administration officials, are steering clear of the term “bailout” for any industry. That term carries negative connotations on Capitol Hill after the controversial efforts undertaken in 2008 to rescue the auto industry from financial collapse.
Kudlow told reporters Monday he did not like the word “bailout” to describe the help the federal government could provide to airlines, saying it was more of a short-term liquidity issue.
Rep. David Price, D-N.C., chairman of the House Transportation, Housing and Urban Development Appropriations Subcommittee, said he was aware of “requests from aviation stakeholders and others for emergency assistance, and we’re currently evaluating these needs.” He added that, “all options should be on the table to protect the safety and well-being of Americans.”
Trump sought to offer a glimmer of optimism that the struggles facing the travel and hospitality industry would only be temporary.
“Hopefully, this will pass through and hopefully people will be flying and going on cruise ships and restaurants and all of these different things that we do.”
Michael Wilner and Francesca Chambers contributed to this report.
This story was originally published March 16, 2020 at 3:32 PM.
