US Aviation Industry Urgently Requests $50 Billion from Government to Overcome COVID-19 Crisis

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] U.S. airlines have requested $50 billion (approximately 62 trillion won) in financial support from the federal government. The airline industry, facing a liquidity crisis due to lockdowns and travel bans imposed by countries amid the spread of the novel coronavirus disease (COVID-19), has sought assistance.

According to CNBC and other media on the 16th (local time), the U.S. Air Transport Association, representing airlines such as Delta and American Airlines, stated that it wants to receive $25 billion in loans and $25 billion in grants to support the industry amid COVID-19 from the government. The Air Transport Association explained that seven member companies expect to run out of cash if the current crisis continues until the end of the year.

If airlines receive the requested $50 billion in financial support, it would exceed the amount of aid provided during the 9/11 terrorist attacks in 2001. The Air Transport Association pointed out, "The decline in demand for private passenger flights related to COVID-19 will deliver an unexpected blow to the U.S. airline industry."

U.S. government officials told foreign media that the government is currently reviewing short-term liquidity enhancement measures for airlines. President Donald Trump said during a meeting with reporters that day, "We will support the airlines 100%," adding, "This is not their fault. We will be their backstop." Larry Kudlow, chairman of the White House National Economic Council (NEC), said, "We do not expect airlines to go bankrupt," but added, "If a cash shortage occurs, we will help them."

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