With help from Tanya Snyder and Kelsey Tamborrino
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— Miami Air International has gone bust due to the coronavirus, after waiting weeks for the Treasury Department to respond to its application for CARES Act assistance.
— More than 100 House members are throwing their weight behind a proposal for Congress to send $50 billion to state Transportation Departments.
— Do transit agencies need $24 billion more or $32 billion more to weather the pandemic? Depends who you ask.
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THE MONEY THAT NEVER CAME: A Florida-based charter airline is going out of business, costing hundreds of employees their jobs, and workers say the Trump administration is to blame.
Miami Air International had filed for bankruptcy in March but told employees it was ending operations on Friday, according to Airways Magazine, after an application to the Treasury Department went unanswered for weeks even as the agency started sending checks for billions to major airlines. Treasury Secretary Steven Mnuchin “actively ignored Miami Air’s less than $10 million dollar payroll grant application for six weeks, and instead pushed the company off a cliff,” said Sara Nelson, president of the Association of Flight Attendants-CWA, which represents 150 Miami Air employees.
Treasury did not respond to a request for comment.
Meanwhile, congressional scrutiny of the Treasury Department’s allocation of CARES Act grants is ramping up. Two Senate chairmen sent a letter to Mnuchin asking about the implementation of the stimulus law for the aviation industry. Sens. Roger Wicker (R-Miss.) and Mike Crapo (R-Idaho) asked for a “detailed report” on the status of the bill’s payroll support program for airlines, as well as an update on the CARES Act program providing for loans.
KEEP FLYING, MICHIGANDERS TELL DELTA: A group of Michigan lawmakers is protesting Delta Air Lines’ request to be exempt from DOT requirements that it continue servicing nine airports, including three in Michigan. The five bipartisan members said in a letter to DOT that Delta’s request “undermines the intent” of the CARES Act in terms of supporting aviation employees and continuing service. If DOT does grant the exemptions, the lawmakers said they should last only as long as the restrictions on air travel.
MAILBAG: Maria Cantwell, the top Democrat on Senate Commerce, has joined calls from the airport and airline industries for the federal government to develop guidelines for Covid-19, including temperature checks and other health screenings.
A trade group representing airports said today that it’s asking the federal government to develop guidelines for using facial coverings in public areas of airport terminals. “Absent federal guidelines, ACI-NA supports state and local guidelines that all individuals in the public areas of passenger airport terminals wear facial coverings,” said the Airports Council International-North America in a statement.
BOEING BOSS PREDICTS AIRLINE BUST: Boeing CEO David Calhoun predicted during an interview with NBC News airing today that a major U.S. air carrier will have to go out of business due to the coronavirus pandemic. “Yes, most likely,” he said, when asked if that will be the case, according to a clip promoted by NBC. “You know, something will happen when September comes around. Traffic levels will not be back to 100 percent. They won’t even be back to 25 percent. Maybe by the end of the year we approach 50 percent. So there will definitely be adjustments that have to be made on the part of the airlines.”
IN THE FEDERAL REGISTER: The FAA is launching a national survey of drone users that will help develop national forecasts of drone activity. Ultimately, the agency will use the data to implement an unmanned aircraft systems traffic management service. Respondents will be asked about their flights and what kind of equipment they use, according to the Federal Register notice.
HOUSE MEMBERS SUPPORT STATE DOT MONEY: 137 House lawmakers are backing a call for Congress to include roughly $50 billion for state DOTs in the next coronavirus response package. The list includes both Democrats and Republicans, who signed on to support the American Association of State Highway and Transportation Officials’ ask for funds to help protect jobs and keep transportation projects moving.
“Providing state DOTs … an immediate infusion of $49.95 billion in federal funding separate from any additional State and Local relief, is not unlike action taken in prior COVID-19 response bills, which provided federal funding for other transportation modes facing reductions in revenue due to decreased travel,” the lawmakers wrote.
ANOTHER MAILBAG: Wicker also wrote to airport and airline groups to ask them about the president’s budget for the agency and the impact of Covid-19 on TSA operations.
HOW MUCH DOES TRANSIT NEED FROM CONGRESS? An association representing transit agencies last week asked Congress for $24 billion in additional funding for the industry to recover from the coronavirus — but agency workers say that won’t be enough. A group of transit unions followed up on that request to say it’s overly conservative and would still not be enough. “On behalf of all essential workers and others who utilize transit across the country, we urge you to include at least $32 billion in any new COVID response vehicle in order to maintain the safe, healthy operation of public transportation,” wrote the labor groups.
Where do the competing numbers come from? The American Public Transportation Association commissioned an independent economic analysis by the firm EBP. The unions’ numbers come from an estimate developed by the Metropolitan Transportation Authority in New York.
TESLA TUSSLE: Nobody likes a fight like Elon Musk does. The Tesla CEO reopened his California factory on Monday in defiance of local health officials, escalating his battle with state and local governments, which has already seen him sue Alameda County, and earning a profane tweet from an elected official. “F*ck Elon Musk,” wrote Lorena Gonzalez, a state assemblywoman from San Diego, over the weekend. Musk said Monday that if the authorities arrest anyone at his illegally opened factory, it should be him. For a fuller roundup of the latest developments, our California team has you covered.
COUNTRY ROADS, SHAKE MY BONES: A new report by the transportation research nonprofit TRIP found a $211 billion backlog in repairs and improvements to U.S. rural roads. Rhode Island topped the charts with 41 percent of its rural roads and 22 percent of its rural bridges in bad condition, though South Carolina and four other states had worse fatality rates. Pros, go straight to the statistics.
ROLLING RALLY: 800 motorcoach drivers are bringing their rigs to D.C. this week to raise awareness that their industry is struggling, and to press policymakers to take action to help. The drive-in is organized by the American Bus Association and United Motorcoach Association. A number of leading Democrats, including two House chairmen, have advocated for industry-specific support for buses.
PHMSA WITHDRAWS CRUDE VAPOR PRESSURE RULEMAKING: The Pipeline and Hazardous Materials Safety Administration said Monday it was withdrawing its January 2017 advanced notice of proposed rulemaking on vapor pressure for unrefined petroleum products. The withdrawal follows a recent study by Sandia National Laboratories that found oil from North Dakota’s Bakken Shale field isn’t more likely to trigger explosions in train accidents than other crude grades. In withdrawing the proposed rulemaking, the agency said it is “no longer considering vapor pressure limits for the transport of crude oil by rail.”
Katherine Knight started on Monday as deputy director of public affairs at DOT. She was previously the Association for Advanced Life Underwriting’s vice president of communications. Prior to that, she worked at the U.S. Chamber of Commerce and on Capitol Hill.
United Airlines has a new president, effective May 20: Brett Hart, who was previously executive vice president and chief administrative officer.
— “Air travel is going to be very bad, for a very long time.” The Atlantic.
— “The coronavirus pandemic emptied America’s roadways. Now speeders have taken over.” Washington Post.
— “Slovenia to allow passenger air traffic from Tuesday.” Reuters.
— “In New York’s subway shutdown, an unthinkable departure.” Associated Press.
— “Unemployed drivers find work delivering food to New York City’s needy.” Wall Street Journal.
DOT appropriations run out in 141 days. The FAA reauthorization expires in 1,237 days. Highway and transit policy is up for renewal in 141 days.
