The United States Senate has passed a stimulus package that will include another $14 billion for airlines under the Payroll Support Program (PSP). The support package will preclude airlines from laying off or furloughing additional workers and keep people employed.
Dubbed the “American Rescue Plan Act of 2021,” the US Senate passed the pandemic relief package that includes $14 billion for airlines.
The bill, once enacted, would give airlines the third round of government support with conditions similar to the previous two rounds of government support.
The airlines will get the money, and then the airlines will not be able to furlough, layoff, or reduce salaries for employees through September 30th, 2021.
Airlines will also need to refrain from repurchasing their shares or paying dividends through September 30th, 2022. This applies to carriers who take money through the extended PSP. There are also limits to executive compensation.
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