Airport Alert: Hauptli Urges Key Lawmakers to Continue Helping Airports Impacted by Coronavirus Pandemic
May 6, 2020
AAAE President and CEO Todd Hauptli today urged key lawmakers to continue helping commercial service and general aviation airports severely impacted by the coronavirus. He also outlined a set of recommendations to make the aviation system safer for passengers and employees during the pandemic and as traffic returns to the system.
Hauptli was one of four witnesses who testified before the Senate Committee on Commerce, Science and Transportation during a lengthy hearing on how the COVID-19 pandemic is impacting the aviation system. One witness and a large number of Commerce Committee members attended the hearing virtually. A video clip of Hauptli's opening statement may be viewed here, and his written testimony may be viewed here.
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Calio told lawmakers that passenger levels are down 95 percent and that the airlines are losing $350 million to $400 million a day. He went on to say that it took the airline industry three years to recover from 9/11 and seven years to recover from the Great Recession. He also warned lawmakers that it is going to be a "long and difficult road" for the airlines in the aftermath of the COVID-19 pandemic.
Hauptli told lawmakers that the sudden decline in passengers levels is also impacting airports by reducing their operating revenues and the amount of funds they receive from Passenger Facility Charges. "Billions of dollars in revenue that airports expected to be generated by passengers and PFC collections have evaporated," Hauptli said in his opening remarks.
CARES Act and the Need for Additional Assistance: Hauptli thanked lawmakers for passing the CARES Act, which included $10 billion to help airports impacted by the coronavirus. He told committee members that the funds "are a lifeline that will protect jobs, enhance cleaning and sanitization efforts, ensure that debt payments can be made and help keep construction projects moving forward, at least in the near-term."
The CARES Act will help airports survive the immediate crisis by providing much-needed funds for operational expenses and debt service payments. But Hauptli told lawmakers that airports will need at least another $10 billion as the pandemic continues, as reduced passenger levels continue to erode airport revenue streams, and as airports face new costs related to the pandemic.
"Given the significant decline in aviation activity and revenue, and the precipitous drop in PFC collections that help support bond payments, airports will need additional federal assistance at least as large as the initial amount provided in the CARES Act," Hauptli said.
The CARES Act included $100 million to help general aviation airports - far less than what they actually need to offset the deep drop in revenue. Hauptli told lawmakers that GA airports along with concessionaires and business aviation are struggling financially because of reduced aviation activity. He called on Congress to do more to help commercial service and GA airports and to protect their partners.
"Congress must also provide billions of dollars in financial support for other parts of the aviation ecosystem -- general aviation airports, business aviation, concessionaires, and other airport partners that have been significantly impacted by the crisis," Hauptli said.
Contract Towers and Rural Air Service: In response to a question form Senator Jerry Moran (R-KS), Hauptli highlighted the importance of the Contract Tower Program. He urged lawmakers to provide just over $8 million to help nonprimary commercial service and general aviation airports that participate in the program. He also thanked Moran and other committee members for cosponsoring the CONTRACT Act - a bill that would make it easier for retired federal controllers to continue working at Contract Tower airports.
Senator Deb Fischer (R-NE) and Jon Tester (D-MT) discussed the importance of maintaining commercial air service to rural communities. Fischer touted the Essential Air Service (EAS) program, and Tester questioned Calio about whether airlines will continue to provide service to small communities with social distancing on flights. In response to a question from Fischer, Hauptli indicated that EAS is a vital program, and he highlighted the need to preserve access to the national aviation system for those who live in rural areas.
Making Aviation System Safe and the Road to Recovery: Hauptli told lawmakers that airports are taking numerous steps to protect the health and safety of passengers and workers during the pandemic. He said airports are working diligently to clean and sanitize their facilities. He indicated that airports are also promoting physical distancing, upgrading air filtration systems, and examining ways to expand touchless travel.
But he told lawmakers that that the aviation industry needs federal guidelines to protect passengers and workers. "We need these clear and consistent processes and procedures throughout the aviation system so that passengers know what to expect regardless of the airline or airport they happen to choose for their travel," Hauptli said.
Senator Edward Markey (D-MA) asked Hauptli about his legislative proposal to create a joint task force, which includes airport operators and other stakeholders, to come up with COVID-19-related recommendations. Hauptli voiced support for the initiative since the recommended task force would essentially codify work that aviation stakeholders and federal agencies are doing today.
In addition to pointing to ongoing work between industry, FAA, and TSA to coordinate on recovery efforts, Hauptli, in response to a question from Senator Jacky Rosen (D-NV), highlighted the recently released report by the U.S. Travel Association "Travel in the New Normal" aimed at keeping travel industry customers and employees safe as the country emerges from the COVID-19 pandemic. AAAE, A4A, ACI-NA and numerous travel and hospitality groups were involved with the effort as was noted in our Airport Alert.
In her written testimony, Dr. Godwin said individuals should be screened for symptoms such as elevated temperature before being admitted to the airport environment. She also recommended that passengers and employees be required to wear masks and gloves in airport terminals. But she told lawmakers that surgical masks and other face coverings other than N-95 masks would provide only minimal protection for passengers on crowded flights.
"The probability that healthy individuals will interact with one or more individuals who are infected but may not know increases exponentially as the number of people passing through the airport increases," Godwin pointed out in her testimony. "Thus, it is critical to reduce the number of close contacts that each person has, to require individuals to wear masks and/or gloves, and to lower the chances of virus transfer via surfaces."
Airline Refunds and Social Distancing: Lawmakers questioned Calio about refunding passengers for cancelled flights and about social distancing on flights. On the former, Senator Richard Blumenthal (D-CT) accused the airlines of providing passengers with misleading and deceptive information about refunds and said airlines are encouraging them to take vouchers instead.
Blumenthal said passengers need that revenue to pay for rent and to put food on the table. He said airlines have a moral and political obligation to provide passengers with refunds at a time when they are receiving a taxpayer-funded bailout.
Calio insisted that passengers who request refunds are receiving them. But he said airlines are trying to preserve jobs. He told lawmakers that providing every passenger with a refund would result in negative cash balances and drive the airlines to bankruptcy.
Senator Amy Klobuchar (D-MN) went after Frontier Airlines for proposing to charge passengers $39 to purchase a middle seat during the pandeimic. She said it is not appropriate for people who can't afford to purchase a middle seat to be less safe on a flight than those who can afford it. Calio said no A4A carrier has instituted a similar policy, and suggested that a federal mandate isn't necessary. Frontier is not an A4A member.
Minimum Service Levels: Senator Mike Lee (R-UT) brought up minimum service obligations for passenger carriers that accept federal funding under the CARES Act and the financial impact those requirements are having on struggling carriers. Calio took issue with the requirement and told lawmakers that it doesn't make sense to for multiple carriers to provide service to the same communities with only a few passengers on each flight. He called for a "rationalization" of the requirement.
Manufacturing: Aerospace Industries Association President Eric Fanning told lawmakers that "substantial orders" for aircraft, engines and support systems have been cancelled in recent weeks and that aerospace and defense companies have had to furlough or layoff large numbers of workers. He called on Congress to "provide temporary and targeted assistance" to protect jobs and keep aviation workers on the payroll.
Additional Resources
• AAAE Testimony
• A4A Testimony
• A4A PowerPoint
• AIA Testimony
• Godwin Testimony
