U.S. lawmaker: airline payroll assistance will be part of COVID-19 measure

By David Shepardson

WASHINGTON (Reuters) – A senior U.S. House lawmaker told reporters that a COVID-19 relief package would include a new round of payroll assistance for U.S. airline workers.

Representative Peter DeFazio, who chairs the House Transportation and Infrastructure Committee, told reporters at the White House the new round of airline government assistance would extend restrictions on executive compensation and stock buybacks.

U.S. airlines have been awarded $40 billion in payroll support since March and airline unions last week asked Congress for another $15 billion to keep thousands of workers on the payroll past March 31, when the current round expires.

Reuters reported Thursday that Democratic leaders in Congress are likely to back $14 billion to extend airline payroll support for six months, keeping nearly 30,000 airline workers on the job.

Flight attendant union leader Sara Nelson said Thursday that $14 billion was being discussed for airlines and $1 billion for contractors. “Congress has to come up with more funds to support these workers,” Nelson said.

U.S. Transportation Secretary Pete Buttigieg told Reuters on Thursday there are “very active” conversations between the White House, Congress and stakeholders about including additional assistance to the struggling transportation sector, which has sought more than $130 billion in a COVID-19 relief bill.

President Joe Biden’s $1.9 trillion proposal includes only $20 billion for transit systems.

Bus and ferry companies want $40 billion, state transportation departments sought $18 billion and airports want $17 billion and public transit has asked for $39.3 billion.

Amtrak Chief Executive Bill Flynn told reporters Friday that the passenger railroad could “fully restore” daily long-distance train service up from the current three days a week and recall furloughed workers if it receives the $1.5 billion in new funding it sought.

American Airlines on Wednesday said 13,000 employees are at risk of furlough starting on April 1; United Airlines sent new furlough warnings to 14,000 employees.

(Reporting by David Shepardson; Editing by Kirsten Donovan)

House to vote on FAA reform bill after Boeing 737 MAX crashes

By David Shepardson

WASHINGTON (Reuters) – The U.S. House of Representatives is set to vote on Tuesday on bipartisan legislation to reform the Federal Aviation Administration’s (FAA) aircraft certification process after two fatal Boeing 737 MAX crashes killed 346 people.

The 737 MAX has been grounded since March 2019 but the FAA is set on Wednesday to approve the plane’s return to service after a lengthy review, new software safeguards and training upgrades.

The House bill requires an expert panel to evaluate Boeing’s safety culture and recommend improvements, and mandates that aircraft manufacturers adopt safety management systems and complete system safety assessments for significant design changes. It also requires that risk calculations be based on realistic assumptions of pilot response time, and that risk assessments are shared with regulators.

The House Transportation and Infrastructure Committee approved the measure unanimously on Sept. 30.

Representative Peter DeFazio, the panel’s chairman, told Reuters in a statement that the measure is “a strong bill that has support from both sides of the aisle and addresses something we all agree on — keeping people safe. There’s no reason to wait until the next Congress to get this done.”

DeFazio, a Democrat, said the FAA failed to properly ensure the safety of the 737 MAX, and called aircraft certification “a broken system that broke the public’s trust.”

Boeing and the FAA declined to comment on the legislation.

A report released by DeFazio found the 737 MAX crashes were the “horrific culmination” of failures by Boeing and the FAA and called for urgent reforms.

The House bill would extend airline whistleblower protections to U.S. manufacturing employees, require FAA approval of new workers who are performing delegated certification tasks, and impose civil penalties on those who interfere with the performance of FAA-authorized duties.

The panel’s top Republican, Representative Sam Graves, said the bill “will help ensure the United States remains the gold standard in aviation safety and maintain our competitiveness in the aerospace sector because we were able to leave partisan politics at the door (and) adhere to the experts’ conclusions that our system should be improved but not dismantled.”

It is unclear if the U.S. Senate will take up the measure before the current Congress expires this year.

(Reporting by David Shepardson; Editing by Sonya Hepinstall)

House panel approves FAA reform bill after Boeing 737 MAX crashes

By David Shepardson

WASHINGTON (Reuters) – A U.S. House of Representatives committee on Wednesday unanimously approved bipartisan legislation to reform the Federal Aviation Administration’s aircraft certification process after two fatal Boeing 737 MAX crashes that killed 346 people.

Representative Peter DeFazio, who chairs the Committee on Transportation and Infrastructure, said the House would vote on the sweeping reform measure later this year.

The Boeing Co 737 MAX has been grounded since March 2019. Among other reforms, the bill requires that an expert panel evaluate Boeing’s safety culture and recommend improvements.

“Those crashes were the inevitable culmination of stunning acts and omissions within Boeing and the (FAA),” DeFazio said at a hearing.

He said the FAA had failed to properly ensure the safety of the 737 MAX, and called aircraft certification “a broken system that broke the public’s trust.”

Boeing and the FAA have declined to comment on the legislation.

The bill would require American aircraft manufacturers to adopt safety management systems and complete system safety assessments for significant design changes, ensure that risk calculations are based on realistic assumptions of pilot response time, and share risk assessments with the FAA.

A report released last week by House Transportation committee Democrats found that the 737 MAX crashes were the “horrific culmination” of failures by Boeing and the FAA and called for urgent reforms.

The House bill would extend airline whistleblower protections to U.S. manufacturing employees, require FAA approval of new workers who are performing delegated certification tasks for the agency, and impose civil penalties on those who interfere with the performance of FAA-authorized duties.

FAA Administrator Steve Dickson is conducting an evaluation flight at the controls of a 737 MAX in Seattle, a key milestone as the U.S. plane maker works to win approval for the aircraft to resume flights.

(Reporting by David Shepardson; editing by Jonathan Oatis)