With help from Brianna Gurciullo
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— The Treasury Department was silent on its progress issuing payroll grants to airlines on Monday, which was the deadline mandated in the CARES Act.
— State DOTs are asking Congress for help in the next coronavirus recovery package, to the tune of $50 billion.
— New data and projections from the freight rail and auto industries highlight some worrisome trends due to the coronavirus.
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SHOW ME THE MONEY? The recently enacted coronavirus aid package, H.R. 748 (116), required Treasury Secretary Steven Mnuchin to start providing grants to airlines by Monday, but the department was silent on whether anything went out. Major airlines, including American, Delta Air Lines, United and Southwest, said they applied for assistance. In a statement, Airlines for America said “carriers remain hopeful that the Treasury Department will move swiftly, with as few restrictions as possible, to ensure airlines are able to utilize these funds to meet payroll and protect the industry’s 750,000 jobs.”
ANOTHER BLOW FOR BOEING: The aircraft manufacturer is temporarily shutting down operations at its 787 facilities in South Carolina. “When the suspension is lifted, the 787 program will take an orderly approach to restarting production with a focus on safety, quality, integrity and meeting customer commitments,” Boeing said in a statement on Monday. On Sunday, the company said it was extending its suspension of production in northwest Washington state.
A VOICE FROM THE SKY: The FAA is investigating after a drone was seen flying over a Manhattan park and telling New Yorkers to socially distance over the weekend, The Hill reports. The disembodied voice from the aircraft claimed to be part of the “Anti-Covid-19 drone task force,” but nobody has come forward. The FAA told The Hill that it “will investigate whether the unknown operator had registered the drone and has the certificate needed to fly it.”
It’s likely the drone operator was flying in violation of one or several laws. City laws prohibit the flying of drones in most instances and in most parts of the city, and federal regulations prohibit drone flights over people.
A PLEA FROM THE STATES: State DOTs are the latest group to eye a potential fourth coronavirus recovery package, asking the federal government for $50 billion, our Tanya Snyder reports. In a letter sent to congressional leaders on Monday, the American Association of State Highway and Transportation Officials said the proposed funds for 2020 and 2021 would “prevent cancellations and delays of projects as well as potential job losses both in the state DOT workforce and the private sector.” State DOT revenues are expected to drop 30 percent in the next 18 months.
They also asked for the passage of a surface transportation reauthorization bill, which as Tanya notes, has been a conversation that has “waxed and waned in recent days.”
NO EVENT IS IMMUNE: The week formerly known as Infrastructure Week has been delayed due to the coronavirus. United for Infrastructure, previously scheduled for May, will now be from Sept. 14-21.
INDUSTRY IMPACTS, PART I: Freight rail volume dropped sharply last month, with the shutdown of auto plants driving the heaviest decreases. As Tanya reports, March saw rail carloads fall to their lowest levels since the Association of American Railroads started keeping data in January 1988. U.S. intermodal volume last month dropped 12 percent from March 2019.
It’s not all in the red: “Carloads of grain were up for the first time in a year, and March was the best month for rail carloads of chemicals in two years,” AAR said.
INDUSTRY IMPACTS, PART II: The Boston Consulting Group in a new report on Monday forecast a 20 percent decline in new vehicle sales for 2020, with a worst case scenario of more than 40 percent globally.
The slide will “have a tremendous impact on automotive suppliers, testing break-even points, draining cash, and in the case of some suppliers, putting their very survival at risk,” BCG said in a release.
IN REGULATION LAND: In a Federal Register notice today, NHTSA denied a petition for reconsideration submitted by several safety and consumer groups. For those who want to get into the weeds: The safety advocates had opposed a rule eliminating a “provision calling for the agency to determine that an application for a temporary exemption from any FMVSS or bumper standard or for a renewal of exemption is complete before the agency publishes a notification summarizing the application and soliciting public comments on it.” Read more on the agency’s reasoning.
— “With the commercial aviation industry in a nosedive, the Defense Department offers airlines a lifeline.” Defense News.
— “American Airlines joins United in slashing New York-area flights.” Bloomberg.
— “U.S. Supreme Court turns away religious clash over Washington transit ads.” Reuters.
— “Airbus halts airplane manufacturing in Mobile until April 29.” AL.com.
— “Alaska warned U.S. government its largest regional airline was on verge of collapse: letter.” Reuters.
DOT appropriations run out in 176 days. The FAA reauthorization expires in 1,272 days. Highway and transit policy is up for renewal in 176 days.
