9.2 C
Thursday, February 2, 2023

US will give aircraft companies $482 million for pandemic

- Advertisement - Booking.com
- Advertisement -spot_imgspot_imgspot_imgspot_img

The Biden administration is providing $482 million to aviation industry manufacturers to assist them in avoiding employment or salary losses during the pandemic.

According to the Transportation Department, the taxpayer-funded stimulus will cover up to half of the payroll costs at 313 enterprises, saving up to 22,500 jobs.

Because of the spread of COVID-19, air travel has dropped. In recent months, the delta variation has resulted in increased cancellations and decreased travel.

According to the Transportation Department, more than 100,000 aerospace jobs have been lost in an industry that employed over 2.2 million people.

Spirit Aerosystems, a Boeing supplier based in Kansas, will receive the most money from the fund, worth $75.5 million, according to the government, which will help protect 3,214 jobs.

Parker-Hannifin Corp. of Ohio, which manufactures hydraulic systems for aircraft, will receive $39.7 million. Panasonic’s avionics unit, based in California, will receive $25.8 million, while numerous U.S. subsidiaries of France’s Safran S.A. would receive a total of $24.8 million.

The funds for aerospace industries are part of a $1.9 trillion deal agreed by Congress and signed by President Joe Biden in March.

The assistance is comparable to a considerably larger aid program for US airlines, which has gotten $54 billion in the last year and a half. The airlines also pledged not to lay off any staff, but they still cut tens of thousands of jobs by offering incentives for employees to quit or retire early.

Critics called the airline help a bailout, claiming that it amounted to several hundred thousand dollars for each job saved – 75,000 jobs, according to some estimates.

Defenders such as American Airlines CEO Doug Parker argue that if the government had not intervened, airlines would have been forced to close their doors as traffic dropped to levels not seen since the 1950s.

The Federal Aviation Administration, which is part of the Department of Transportation, has awarded $100 million to aerospace businesses such as Boeing, General Electric’s aviation division, and jet engine manufacturer Pratt & Whitney to make planes less polluting and quieter.

- Advertisement -
Latest news
- Advertisement - Get a .com now from $4.99*/yr with GoDaddy!
- Advertisement -
- Advertisement -
- Advertisement -spot_imgspot_imgspot_imgspot_img
Related news
- Advertisement -spot_img


Please enter your comment!
Please enter your name here