Coronavirus: Steven Mnuchin in talks with Congress to help struggling airline industry lift off during downturn
With the coronavirus threat taking an ominous shape, the aviation industry is facing major financial challenges. Since traveling has virtually grounded the world over, the air carriers are finding it tough to survive and there are already talks within the government to help the struggling airlines weather the downturn.
Treasury Secretary Steven Mnuchin on Sunday, March 15, said he was in close contact with the Congress about helping America’s airlines to overcome the challenge caused by large-scale travel restrictions. He said on ABC News’ The Week program that he was speaking with House Speaker Nancy Pelosi about measures to help the airlines and other sectors reeling under the coronavirus threat.
Delta Air Lines has been reportedly in talks to the White House and Congress about aid to get through the lean phase created by the coronavirus threat.
'We will work on bipartisan basis'
“We need to focus on the airline industry. This is an unprecedented situation,” he told the ABC program. “The president is going to use all the tools that are in the toolbox, and we will work with Congress on a bipartisan basis.”
“The speaker and I are already in conversations about airlines, which (are) critical to us, hotels, cruise ships, more SBA lending, more liquidity, some type of stimulus,” he said. White House economic adviser Larry Kudlow said on CBS’ Face the Nation program that the administration would discuss ‘a number of new proposals’ for the airlines with America’s lawmakers this week but stopped short of giving details.
Dr Anthony Fauci, top infectious diseases expert, on Sunday warned the people of the US that the coronavirus outbreak would get worse before it gets better but added that he did not see the US restricting domestic travel in the near future.
On Saturday, March 14, American Airlines Inc said it plans to slash 75 percent of its international flights through May 6 and ground almost all its widebody fleet, Reuters reported.
On Sunday, Delta Air Lines Inc said it will stop service to London from Detroit and Dublin flights from New York after the Trump administration said its travel restrictions from the UK were including the UK and Ireland, the Reuters report added.
Delta, American Air Lines and United Airlines - the three biggest airlines in the US - are in talks with the government about potential assistance though no details have emerged.