(Reuters) – Labor unions plus some U.S. lawmakers are pressing airlines never to resume stock buybacks after having a COVID assistance prohibition expires this week.
Representative Peter DeFazio, a Democrat who chairs the House Transportation and Infrastructure Committee, is holding a hearing on Thursday on investing in transportation workers which will talk about the issue.
DeFazio is circulating a letter to colleagues seen by Reuters that urges airlines to “refrain from initiating stock buybacks … at the least until airline carriers have the ability to publish and fulfill schedules that meet demand; staff flights and personnel that are key appropriately; and return service to every community.”
Aviation unions launched a campaign in to pressure airlines against stock buybacks august. It came as major carriers are negotiating contracts that are new their pilots, who are asking for higher pay and improvements in schedules.
Sara Nelson, president of the Association of Flight Attendants, is among those will testify at Thursday’s House hearing.
“While airlines are just now starting to make a profit, the recovery is not complete and the austerity of twenty years prior has not been corrected for airline jobs,” according to Nelson’s written testimony seen by Reuters. “We can’t allow CEOs to send one dollar to Wall Street before fixing operational issues and contract that is concluding.”
Airlines for America, a trade group, said airlines come in full compliance utilizing the payroll assistance program.
The group noted U.S. airlines have already been “aggressively hiring over the industry … to support the return that is rapid of for air travel” and are “making significant investments in new aircraft.”
Congress approved $54 billion in three rounds covering much of U.S. airline payroll costs for 18 months through 2021 september. Earlier this month, the chairs of two other congressional committees sought a probe that is federal whether airlines used payroll funds to finance pilot buyouts and early retirements.
American Airlines received $12.6 billion, Delta Air Lines $11.9 billion, United Airlines $10.9 billion and Southwest Airlines $7.2 billion.
Out of $54 billion, airlines must repay $14 billion, or 26.2% regarding the funding.
(Reporting by David Shepardson; Editing by Chris Reese)
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