With help from Brianna Gurciullo, Tanya Snyder, Anthony Adragna and Gavin Bade
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— Senate Republicans are offering up $58 billion in loans for the airline industry in an economic stimulus package introduced on Thursday.
— American travelers stranded in foreign countries say they were misled by airlines and ignored by the State Department.
— Former U.N. Ambassador Nikki Haley quit Boeing’s board over the company’s request for a government bailout.
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SENATE WILL GIVE AIRLINES MONEY, BUT THEY WANT IT BACK: Senate Republicans proposed a relief package Thursday that would give airlines the $58 billion bailout they asked for — only all in loans and loan guarantees, with no grants. Passenger airlines would get $50 billion, cargo airlines would get $8 billion, and “other eligible entities” would get $150 billion. They’d have to keep serving any route DOT asked them to, with special attention to rural routes, and they would be banned from raising executive pay — for two years.
Let the negotiations begin. Democrats don’t want to give airlines a lifeline unless it comes with protections for labor and consumers, carbon emissions reductions, a ban on stock buybacks, and a stronger provision on executive pay. Senate Minority Leader Chuck Schumer and House Speaker Nancy Pelosi said in a statement that in order to “earn Democratic support,” the plan would have to “prioritize and protect workers” and ban the recipient companies from “buying back stock, rewarding executives and laying off workers.”
TRANSIT’S ASK GOES UP: The American Public Transportation Association on Thursday upped its bailout request from $12.875 billion to $16 billion, saying in a letter to congressional leaders that the new figure reflects the results of its member survey and separate asks by individual agencies — $4 billion for New York’s MTA and $1.25 billion for New Jersey Transit, for example. Both agencies have experienced ridership drops around 90 percent.
Good luck with that: The Senate GOP package contains nothing for public transit. Senate Democrats have proposed to help the industry but have not offered a number.
STRANDED: Americans stuck around the world say they feel misled by airlines and abandoned by the State Department, your host reported, interviewing travelers stranded in Guatemala and Lithuania.
On Thursday, State issued a level four travel advisory, warning telling Americans abroad to come home or prepare to shelter in place. But that didn’t mean much for those stranded who have been asking embassies for help and not getting much in return.
One possible solution: Members of Congress, as they hear from trapped constituents, are ramping up pressure on State to get Americans home. Sen. Bob Menendez ranking member of the Foreign Relations Committee, called on the White House to invoke the Civil Reserve Airfleet readiness program, through which commercial flights could be chartered to evacuate stranded citizens. He also called on DOT to explore making civilian aircraft available, and the Pentagon to look into using military planes.
EYEBROWS EMOJI: Haley resigned from Boeing’s board of directors this week in opposition of the company’s pursuit of federal assistance due to the coronavirus pandemic, Pro’s Anthony Adragna reports. “I cannot support a move to lean on the federal government for a stimulus or bailout that prioritizes our company over others and relies on taxpayers to guarantee our financial position,” Haley wrote in a resignation letter included in the filing. “I have long held strong convictions that this is not the role of government.”
DICKSON SELF-QUARANTINES: FAA Administrator Steve Dickson is self-quarantining for seven days because he shook hands last week with a lawmaker who later tested positive for the coronavirus. The lawmaker, House Appropriations Transportation-HUD ranking member Mario Diaz-Balart (R-Fla.), said he developed symptoms on March 14. Three days before, Diaz-Balart’s subcommittee held a hearing with Dickson, and the two shook hands. The chairman of the subcommittee, David Price (D-N.C.), said he will also self-quarantine “as a precautionary measure.” Dickson and Price both said they weren’t experiencing symptoms.
Meanwhile, DOT ordered staff not to work at its headquarters after an employee tested positive. A spokesperson said no other cases are suspected at this point.
ANOTHER AIR TRAFFIC CONTROL TOWER CLOSED: Two air traffic control towers have now been shut down because of the coronavirus. First, Chicago Midway International Airport’s tower was shut down Tuesday after several technicians tested positive. Then, the tower at McCarran International Airport in Nevada was closed after a controller “presumptively” tested positive Wednesday, according to the FAA. The Professional Aviation Safety Specialists complained that FAA technical employees weren’t told about the case right away. Per PASS: “They found out about the exposure after the tower at McCarran was evacuated.”
The union urged the FAA to “take swift and decisive action to ensure that frontline managers and supervisors have clear, consistent protocols in place that protect all employees at every FAA operational and support facility.”
The FAA said in a statement that technicians weren’t allowed into the tower Thursday. Managers called or texted technicians Wednesday night, and they told facilities guards not to allow technicians they hadn’t been able to reach inside the tower.
A federal air marshal field office in Chicago also shut down for cleaning after an employee tested positive, your host reported. The president of the Air Marshals Association said there were a handful of cases across the service but that operations hadn’t been affected.
A NEW LEASE ON LIFE: As the country adopts a wartime posture to combat the coronavirus pandemic, automakers are weighing a WWII-throwback plans to convert automobile plants to manufacture ventilators and other needed medical equipment. Experts warn that it could take months to transition manufacturing for a dramatically new product, and in compliance with social distancing rules. Respirator manufacturing facilities in the U.S. are already at 100 percent production capacity and are looking to ramp up by another 15 or 20 percent, said one industry official. Our Tanya Snyder teamed up with our Trade reporters on this one.
FEDS WANT SAFETY GEAR COUNT FROM BUILDERS: After being surprised by Vice President Mike Pence’s request for construction companies to give their protective masks to medical providers, a main builders group now says the feds want a tally of all their protective gear — but still hasn’t said why. The Association of General Contractors said HHS requested an inventory of available safety equipment, “including masks and booties and protective suits.” The group says it will ask its members today to tabulate all their gear, but Vice President for Public Affairs Brian Turmail said “it isn’t clear to us, yet, how they intend to use this information.”
TESLA TO HALT CALIFORNIA, NEW YORK FACTORIES: After defying officials in California for days, Tesla said it will halt operations at its factories in California and New York by Monday, Pro California’s Colby Bermel reports. Telsa’s Fresno, Calif., factory has continued to operate despite shelter-in-place orders from Bay Area governments and a statement from the local sheriff declaring it is “not an essential business.” Tesla said it would maintain minimum operations at both plants and institute “touchless” delivery for new cars during the outbreak.
— “Airport screenings dip below 1 million per day.” POLITICO.
— “Canceled flights increase cargo burden on express carriers.” POLITICO Pro.
— “Uber shares soar after CEO says enough cash to ride out coronavirus crisis.” Reuters.
— “China shipping exports rebound, just as Western ports cope with coronavirus downturn.” Wall Street Journal.
— “Passengers fell ill with coronavirus. And the ship sailed on.” New York Times.
DOT appropriations run out in 193 days. The FAA reauthorization expires in 1,290 days. Highway and transit policy is up for renewal in 193 days.
