Airport Alert: AAAE Urges House Leaders to Support Airports, Aviation Ecosystem in Coronavirus Relief Package
September 25, 2020
As we reported last night, House Democratic leaders are drafting a $2 trillion-plus coronavirus relief bill that reportedly includes an extension of airline payroll assistance to protect tens of thousands of industry jobs. In a letter sent today to House Speaker Nancy Pelosi (D-CA), AAAE President and CEO Todd Hauptli noted the interconnected, interdependent nature of the aviation ecosystem and argued that coronavirus legislation must take a broad approach that addresses the needs of airports, airlines, and our industry partners, including concessionaires.
Hauptli wrote that:
"All segments of our industry have been hit hard by the precipitous declines in passengers and revenue, and the timeline for recovery is likely to be lengthy. Urgent assistance is needed to keep workers on the job; to allow critical projects to move forward; and to help meet ongoing financial obligations including debt payments and increased operational expenses for cleaning, sanitization, and other public health measures.
"The CARES Act included support for airlines via the Payroll Support Program and provided direct assistance to airports. As you contemplate extending the airline PSP, we also urge you to extend relief to airports and provide assistance to our industry partners, including concessionaires.
"For airports, the depths of the crisis have been severe. Passenger levels were down as much as 95 percent system-wide for an extended time and are still at only 25 to 30 percent of previous levels. Billions in revenue that airports expected to be generated by travelers has evaporated. Billions more in anticipated passenger facility charge (PFC) collections has also disappeared, depriving airports of a key source of revenue to support bond payments. Airports hold nearly $100 billion in collective debt, with some $7 billion in airport bond principal and interest payments due in 2020.
"The airport community has asked Washington for $15 billion in necessary additional relief: $13 billion for commercial service airports; $1.5 billion for general aviation airports; and $500 million to address local matching share issues for fiscal year 2021. In addition to direct airport assistance, we've requested $3.5 billion in federal assistance to allow airports to provide relief for airport concessionaires. Again, the entire aviation ecosystem has been dramatically dislocated and needs help to serve our customers and keep the aviation system functional.
"As you assemble another coronavirus bill, and, hopefully, negotiate a final relief package in the days ahead, we urge you to recognize the importance of the aviation system and provide the relief needed to allow airlines, airports, and our partners to move forward through one of the most challenging times in our history. Aviation not only allows for the movement of people and goods across the country and around the planet, it is also the oxygen that fuels our economy, and we need a healthy industry in order to return to a healthy economy. The scale and scope of this crisis requires immediate action."
Input Needed to Push for Inclusion of Airport, Industry Assistance
While the path forward for this latest relief proposal in the ongoing back and forth between Democrats and Republicans in Washington is unclear, we need your help NOW in pressing for the inclusion of funding for airports and the our industry partners. The airlines have been mounting a full court press in effort to convince Congress to extend the Payroll Support Program before the end of the month. While extending the PSP is an important step we support to save airline jobs and protect service to small communities, Congress must also provide help for airports and our other industry partners, including concessionaires.
Draft talking points and background are available for your use, and we encourage you to use and tailor the message included in AAAE's letter to Speaker Pelosi to outline the unique and pressing needs at your airport.
Please do not hesitate to contact the AAAE Federal Affairs team if we can be of assistance as you communicate with your elected officials.
As we reported last night, House Democratic leaders are drafting a $2 trillion-plus coronavirus relief bill that reportedly includes an extension of airline payroll assistance to protect tens of thousands of industry jobs. In a letter sent today to House Speaker Nancy Pelosi (D-CA), AAAE President and CEO Todd Hauptli noted the interconnected, interdependent nature of the aviation ecosystem and argued that coronavirus legislation must take a broad approach that addresses the needs of airports, airlines, and our industry partners, including concessionaires.
Hauptli wrote that:
"All segments of our industry have been hit hard by the precipitous declines in passengers and revenue, and the timeline for recovery is likely to be lengthy. Urgent assistance is needed to keep workers on the job; to allow critical projects to move forward; and to help meet ongoing financial obligations including debt payments and increased operational expenses for cleaning, sanitization, and other public health measures.
"The CARES Act included support for airlines via the Payroll Support Program and provided direct assistance to airports. As you contemplate extending the airline PSP, we also urge you to extend relief to airports and provide assistance to our industry partners, including concessionaires.
"For airports, the depths of the crisis have been severe. Passenger levels were down as much as 95 percent system-wide for an extended time and are still at only 25 to 30 percent of previous levels. Billions in revenue that airports expected to be generated by travelers has evaporated. Billions more in anticipated passenger facility charge (PFC) collections has also disappeared, depriving airports of a key source of revenue to support bond payments. Airports hold nearly $100 billion in collective debt, with some $7 billion in airport bond principal and interest payments due in 2020.
"The airport community has asked Washington for $15 billion in necessary additional relief: $13 billion for commercial service airports; $1.5 billion for general aviation airports; and $500 million to address local matching share issues for fiscal year 2021. In addition to direct airport assistance, we've requested $3.5 billion in federal assistance to allow airports to provide relief for airport concessionaires. Again, the entire aviation ecosystem has been dramatically dislocated and needs help to serve our customers and keep the aviation system functional.
"As you assemble another coronavirus bill, and, hopefully, negotiate a final relief package in the days ahead, we urge you to recognize the importance of the aviation system and provide the relief needed to allow airlines, airports, and our partners to move forward through one of the most challenging times in our history. Aviation not only allows for the movement of people and goods across the country and around the planet, it is also the oxygen that fuels our economy, and we need a healthy industry in order to return to a healthy economy. The scale and scope of this crisis requires immediate action."
Input Needed to Push for Inclusion of Airport, Industry Assistance
While the path forward for this latest relief proposal in the ongoing back and forth between Democrats and Republicans in Washington is unclear, we need your help NOW in pressing for the inclusion of funding for airports and the our industry partners. The airlines have been mounting a full court press in effort to convince Congress to extend the Payroll Support Program before the end of the month. While extending the PSP is an important step we support to save airline jobs and protect service to small communities, Congress must also provide help for airports and our other industry partners, including concessionaires.
Draft talking points and background are available for your use, and we encourage you to use and tailor the message included in AAAE's letter to Speaker Pelosi to outline the unique and pressing needs at your airport.
Please do not hesitate to contact the AAAE Federal Affairs team if we can be of assistance as you communicate with your elected officials.
