The Airline Industry in Africa Could Collapse Without Taxpayer Assistance at National Level

The Airline Industry in Africa Could Collapse Without Taxpayer Assistance at National Level

As a consequence of the pandemic and associated restrictions, African airlines are forecast to lose $2 billion in 2020. Without urgent financial relief, the industry is at risk of collapse, putting about 3.3 million jobs and $33 billion in African GPD in jeopardy.

To date, the governments of Sub-Saharan Africa Rwanda, Senegal, Côte D’Ivoire and Burkina Faso have pledged a total of $311 million in direct financial support for air transport. A further $30 billion has been promised for air transport and tourism by a variety of governments and institutions throughout the region. However, much of the relief is yet to reach those in need due to bureaucracy and complex processes.

“Over $30 billion in financial support has been pledged to aviation and tourism in Africa,” said Muhammad Albakri, IATA’s Regional Vice President for Africa and the Middle East. “Some of this money has been allocated by governments, but far too little of it has reached its intended recipients. Governments and lenders need to urgently unchoke the bottlenecks so that the money can flow quickly, otherwise it will be too late to prevent closures and job losses. There will be no point re-opening the borders and skies if there is no industry left to speak of that is capable of supporting trade and tourism, which are the key components of any thriving economy.”

The harmonized adoption of the ICAO Take-Off guidance which outlines recommended biosafety measures, is also essential to the recovery of African aviation. The guidance includes adequate physical distancing, wearing face masks or coverings, enhanced sanitation and disinfection, health screening, contact tracing and the use of passenger health declaration forms. It also calls for testing, where rapid and reliable testing is available.

“To instill public confidence and avoid repeating the mistakes made after 9/11, which created disjointed airport security measures, governments and local authorities must adopt ICAO’s biosafety measures in a harmonized fashion and implement them consistently and diligently,” said Albakri. “This will also ensure that air travel is able to support the revival of economies without becoming a vector for spreading COVID-19.”

Air transport is at the core of the travel and tourism value chain. Combined the sectors support the livelihood of 24.6 million people across the continent, contribute $169 billion to Africa’s economy and represent 7.1% of the continent’s GDP.

“Containing the pandemic is the top priority,” said Albakri. “But without a lifeline of funding to keep the sector alive, and a roadmap to restart aviation safely as soon as possible, the economic devastation of COVID-19 could take Africa’s development back a decade or more. Aviation supports livelihoods, trade, education, good health and wellbeing, and quality education. It reduces hunger and poverty and ensures access to essential medical supplies and humanitarian aid, as proven throughout this crisis. Without an air transport industry, the people of Africa are at risk of not being able to realize their dreams and aspirations.”

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Airlines Post Best Numbers in Months

Airlines Post Best Numbers in Months

More than 800,000 Americans passed through TSA checkpoints on Monday, the most since mid-March. The uptick comes as key Senators begin to voice support for an additional round of payroll assistance for airlines, and stock prices for carriers post their most significant gains in weeks.

According to federal data, 831,789 passengers boarded flights on Monday, marking the two best weeks for airlines in nearly five months and the second consecutive week of improvement.

Shares of United Airlines stock rose by a little over 9% on the news, closing at $37.54. American stocks jumped 7% to $14 a share. Hawaiian Airlines also showed steady improvement, rising by more than 4% to $13.77.

Despite the welcome news, overall passenger traffic remains low, at only 30% of what it was in 2019. Analysts are cautioning that the summer rush for airlines has not been enough to prevent potential job losses this fall.

In July, airline executives announced plans to cut nearly 100,000 positions as soon as federal protections expire on October 1. Overall, job losses in the sector could soar into the hundreds of thousands.

In response, a coalition of airline unions began asking their members to contact lawmakers asking for an extension of payroll assistance for carriers, which would postpone job cuts until March 2021. The largest such union, the International Association of Machinists and Aerospace Workers, produced more than 3,000 messages and meetings with legislators. Airlines supported the union efforts, with CEOs at United, American, and Southwest offering public efforts to follow the lobbying campaign.

The Democratic Party-controlled House rounded up a majority of Congress willing to support extending the measure. In early August, key Republican Senators and Donald Trump also lent their support, leading many to believe that an additional $25 billion was becoming more likely. However, no plan to extend airline payroll assistance exists so far, and any future agreement may still be weeks away.

“We need to contact our lawmakers; it’s a job requirement at this point,” said IAMAW 141 Legislative Director Dave Roderick. “We can’t put up a ‘Mission Accomplished’ banner and go home,” he said. “We need this assistance as soon as possible. Too many union members live with the stress of not knowing if they will have careers this fall. Every day that goes by without a deal is unacceptable.”

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DO IT AGAIN: Keep Asking Your Senator to Support Airline Payroll Protection Until a Deal Passes

DO IT AGAIN: Keep Asking Your Senator to Support Airline Payroll Protection Until a Deal Passes

The IAMAW, along with a coalition of airline unions, is gaining momentum on Capitol Hill. After securing support from a bipartisan majority of the U.S. House, the IAM needs your help convincing the Senate that they must act now to save hundreds of thousands of airline jobs before funding runs out on October 1.
 
The IAM sent a letter this week to every member of the U.S. Senate encouraging them to support a clean extension of the airline Payroll Support Program, resulting in 16 GOP Senators, led by Sen. Cory Gardner (R-CO), throwing their support behind the programDemocratic Leader Chuck Schumer (NY) has already pledged his caucus’s support for a clean extension.
 
President Trump endorsed the program at a White House press conference on Wednesday.
 
 
“We are encouraged that the airlines have been in talks with Treasury Secretary Mnuchin and White House Economic Advisor Kudlow about extending the program,” said IAM Transportation General Vice President Sito Pantoja. “Now it’s up to the White House and Majority Leader McConnell to help the hundreds of thousands of airline families across the country whose livelihoods are at risk without further aid.”
 
“This is not a partisan issue,” said IAM International President Robert Martinez Jr. “We already have the support of Leader Schumer and Speaker Pelosi and applaud Sen. Gardner and the GOP senators who joined us in this critical fight to get a clean extension of the airline payroll support program. We strongly believe we have the votes in both the House and Senate to get a clean extension of the airline payroll support program passed.”

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District 141 Video Report With PHX Local President, Donald Carbonneau

District 141 Video Report With PHX Local President, Donald Carbonneau

A Conversation With New President of Phoenix’s Local 2559, Don Carbonneau.

Brother Don Carbonneau talks about Sky Harbor Lodge and the job of being  a Local President during the pandemic.

Brother Don Started his airline career in 1996 at America West Airlines, where he accumulated 24 years of experience. He is now with American Airlines as a Fleet Service Employee.

When the workers at American West unionized with TWU in 2000, Don Volunteered as a Shop Steward in Phoenix to help serve the membership. From 2001-03, Don Served as TWU Grievance Chairperson in Phoenix.

In 2006, Don transferred with the recently merged US Airways to Boston where he served again as a Shop Steward. In 2011, he worked on the IAM Grievance Committee in Boston under Committee chair Steve Miller. Miller currently serves as Assistant General Chair for District 141. In 2015 Brother Don transferred with American Airlines to Charlotte, North Carolina, and then in 2016 transferred yet again, this time returning to Phoenix. Once back in his home city, Don served as IAM Shop Steward and a term on the Grievance Committee.

Brother Don then was elected just this year as President of his local in Phoenix, for a 3-year term which began January 1, 2020.

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Senators Show Support for Extension of Payroll Protection to Prevent Mass Airline Layoffs in October.

Senators Show Support for Extension of Payroll Protection to Prevent Mass Airline Layoffs in October.

A group of 16 Republican Senators sent a letter to Senate leaders supporting a measure that would provide $25 billion in additional payroll assistance to airlines. President Trump has endorsed the plan, clearing the way for an extension of the Payroll Support Program, which could cancel layoffs and furloughs expected to start on October 1.

At a briefing at the White House on Wednesday, Trump told reporters he would support a measure that would prevent mass furloughs, saying, “We don’t want to lose our airlines…If they’re looking at that, whether they’re Republican or Democrat, I’d certainly be in favor.”

“Obviously, the airline business is not doing very well. I think it’s very important that we keep the airlines going,” the president added.

Senator Cory Gardner (R-CO) drafted the letter that attracted the support of 16 Senate Republicans as of Wednesday evening. Among the Senators supporting the move are eight Republicans who the Machinists & Aerospace union added to a call-list for union members to contact last week. That effort was part of an intensive lobbying campaign by a coalition of airline unions, which led to more than 3,000 individual messages sent to lawmakers.

Mississippi Senator Roger Wicker, who chairs the Senate Committee on Commerce, Science, and Transportation that oversees aviation, also signed the letter along with Senator Shelley Moore Capito (R-WVA), a majority member of the Aviation Sub-Committee. Their endorsement shows that the measure will have support in that committee also.

The Senate letter notes that airline travel has not returned to normal levels, and Congress must take action to prevent massive job losses. “In recent weeks, several airlines have notified significant segments of their workforces that their jobs could be at risk on October 1, 2020, following the expiration of CARES Act relief,” the letter said. “For these reasons, we support a clean extension of payroll support for passenger air carrier employees included in the CARES Act to avoid furloughs and further support those workers.” The letter was addressed to Senate Majority Leader Mitch McConnell (R-KY) and Minority Leader Chuck Schumer (D-NY).

David Roderick, Legislative Director for District 141 of the International Association of Machinists & Aerospace Workers, said the endorsement from Republicans is critical. “This is important because we now have support from both parties. With Republican help in the Senate, we now have a much better shot at getting this job-saving assistance for our airlines.” Last week, a letter supporting the extension of the Payroll Support Program written by the Chairman of the House Committee on Transportation, Peter DeFazio (D-OR) earned 223 signatures of support from members of Congress.

Although no final bill has been introduced, additional aid for airlines to cover payroll costs is likely to prevent the mass furloughs slated to begin in October, when the payroll support program that is part of the CARES Act will expire. United and American Airlines have notified union members that they plan to cut 60,000 jobs on October 1. Without help from lawmakers, the industry is expected to lose up to one million jobs nationwide. With the additional $25 billion in aid, combined with thousands of airline workers who have retired or taken voluntary leaves of absence, it may be possible for airlines to avoid most furloughs. Southwest has already stated that it does not expect to make significant job cuts, and United’s CEO Scott Kirby said the carrier is working to avoid as many involuntary cuts as possible. Kirby and American CEO Doug Parker have both said they would welcome an additional airline jobs package. “We support our unions and their efforts for this clean six-month renewal,”  Southwest CEO Gary Kelly told employees in July. “Just as before, I am personally involved in delivering that message to our federal leaders.”

“I am very grateful for the work of thousands of union members who took the time to contact their elected representatives and made their voices heard,” said IAMAW District 141 President, Mike Klemm. “This is one of the largest lobbying and outreach efforts we’ve undertaken,” he said. “We’ve been working with the companies, with allies in other unions, and with our IAM Transportation Territory… it’s really been a massive effort.“

He thanked Sito Pantoja, IAMAW General Vice President of Transportation, and National Legislative Director Hasan Solomon who worked on Capitol Hill. “Our entire union made this effort a priority,” said Klemm.

“We need to thank the members of Congress and the Senators who are standing with us, but we can’t take it for granted that airlines will get this aid,” he cautioned. “A lot can still go wrong. But we are still in this fight, and we are starting to turn the tide.”

This extension of the support for airline payrolls, if enacted, will be part of new coronavirus relief legislation. “Recess begins on Friday, and everyone wants to get a deal ready for the president to sign,” said Ines Garcia-Keim, the President of the New Jersey Council of Machinists. “With Trump’s support, this will move very quickly. The fight’s not over, but we’re moving ahead.”

“We want this measure to be passed into law sooner rather than later, obviously,” said David Roderick. “Thousands of our members are living with targets on their backs. We’ve survived one round of furloughs already, which would have cut our hours by half. Now, we are dealing with the stress of entering the holidays with severe levels of job insecurity. It’s urgent for us to get this resolved as soon as possible.”

New House Measure Would Require Masks on Flights

New House Measure Would Require Masks on Flights

The Healthy Flights Act of 2020 protects passengers and also ensures pilots, flight attendants, and other airline employees are provided masks and other protective equipment, requires the development of a national aviation pandemic preparedness plan, and commissions a study on transmission of infectious diseases in airplane cabins.

Washington, D.C. — Last week, Chair of the House Committee on Transportation and Infrastructure Peter DeFazio (D-OR) and Chair of the Subcommittee on Aviation Rick Larsen (D-WA) led 18 Members of Congress in the introduction of the Healthy Flights Act of 2020, which will provide a set of uniform requirements to help keep passengers and airline and airport workers healthy by minimizing transmission of the virus through our air transportation system. The Healthy Flights Act also helps prepare U.S. aviation stakeholders for future infectious disease pandemics and epidemics through the development of a national preparedness plan to define the aviation system’s response to future outbreaks and by advancing scientific research.

Specifically, the bill

  • Clarifies the FAA’s authority to impose any requirements on passenger and cargo air travel necessary to protect the health and safety of airline workers and passengers during public health emergencies;
  • Requires that passengers must wear masks on board aircraft and within airports, and also requires issuance of masks and other protective equipment to airline employees and certain FAA employees (including air traffic controllers and aviation safety inspectors), during any public health emergency that is caused by an airborne disease;
  • Mandates the development of a national aviation preparedness plan to respond to epidemics or pandemics;
  • Calls for a study on transmission of infectious diseases in airplane cabins; and
  • Creates an FAA Center of Excellence on Infectious Disease Response and Prevention in Aviation to advise the FAA Administrator on infectious diseases and air travel.

“I really can’t see any downsides to this bill,” said International Association of Machinists and Aerospace Workers District 141 Legislative Director Dave Roderick. “How we deal with this pandemic, the effort that we are willing to put into the protection of our nation, the sacrifices and responsibilities that we are willing to take on…these things will define our generation for the duration of the Republic.”

“All airline workers should help defend our industry. This disease should not be allowed to get past us,” Roderick said.

“As Chair of the Aviation Subcommittee, I make air travel safety my top priority,” Chair Rick Larsen said. “Keeping the flying public safe from COVID is even more difficult because of the lack of coordinated federal leadership. This bill includes commonsense measures to limit the spread of COVID-19 in air travel, ensure the safety of passengers and frontline aviation workers, and better prepare the U.S. aviation industry for public health crises.”

In June, District 141 of the International Association of Machinists and Aerospace Workers, one of the largest groups of airline/aviation workers in North America, recommended that all airline workers wear masks whenever social distancing could not be reliably maintained. IAMAW District 141 President and Directing General Chair, Mike Klemm issued a statement at the time telling union members that their safety could not be compromised under any circumstances. “My foremost concern is your health and well-being as we adapt to life during this pandemic,” Klemm told union members. “Protecting our industry and our jobs will require a collective effort from all of us. I ask the members of IAMAW District 141 to protect yourselves, protect your co-workers, and protect your loved ones who depend on you every day.”

Additional resources: Fact Sheet | Section by Section| Bill Text

 

 

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