On Monday, the Department of Transportation announced it would offer the funding to 313 businesses in 37 U.S. states and territories, including Puerto Rico. The aid comes as part of the Aviation Manufacturing Jobs Protection Program, which was written into the $1.9 trillion COVID-19 stimulus package President Joe Biden signed in March.
"For the past year and a half," Transportation Secretary Pete Buttigieg said, "our aviation industry workers have helped keep this economy moving, including by supporting the delivery of lifesaving medical equipment and vaccines. The funding announced today will save jobs and support the workers who have supported us throughout the pandemic."
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The DOT announcement states that the program will offer companies linked to the airline industry funds that can be used "to pay up to half of the payroll costs for certain categories of employees engaged in manufacturing or repair, for up to six months" — if the company receiving the funds does not use them to "furlough or lay off" any employees.
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The program aims to bolster around 23,000 jobs affected by the COVID-19 pandemic.
Before the pandemic, the aerospace industry was estimated to employ approximately 2.2 million workers, including 1.2 million who worked in various parts of the supply chain nationwide, according to industry sources. The historic drop in air travel precipitated by the pandemic led to reduced demand for parts, repairs, modifications, and other services. The Transportation Department noted that the pandemic has caused about 100,000 airline industry jobs to be lost, and hundreds of thousands more might still be at risk.
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According to the Daily Caller, the program could benefit the airline industry and supply chains associated with it. Roughly 1.2 million of 2.2 million airline workers contribute to supply chains.
One company, Spirit AeroSystems, will receive $75.5 million to protect 3,214 jobs at the company.
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Notably, many of the recipients are small businesses. Of the 313 companies receiving funds, 188 of them (60%) had fewer than 100 employees at the end of calendar year 2020, and 252 of them (80%) had fewer than 250 employees.
The Federal Aviation Administration, part of the Transportation Department, recently awarded $100 million to aerospace companies including Boeing, General Electric’s aviation division and jet engine maker Pratt & Whitney to make planes less polluting and quieter.
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Critics labeled the airline aid a bailout that amounted to several hundred thousand dollars for each job that was spared – 75,000 jobs, by some estimates. Defenders such as American Airlines CEO Doug Parker say that without the government's help, airlines would have been forced to shut down when traffic fell to levels not seen since the 1950s.
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The Federal Aviation Administration, part of the Transportation Department, recently awarded $100 million to aerospace companies including Boeing, General Electric’s aviation division and jet engine maker Pratt & Whitney to make planes less polluting and quieter.
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