The struggling airline industry suffered a major setback on their way to gain another round of government aid when Trump told his representatives to halt all talks with Democratic leadership on a new stimulus package.
U.S. carriers needed a postponement of the CARES Act from March to evade dismissals. But since the news has carried out, they have lost all their hope. Unfortunately, major airlines like American and United have started the leave of absence process.
According to Bloomberg News Service Trump’s verdict came after Jerome Powell the Federal Reserve Chair called for greater spending to recover economic damages from the shocking effects of the COVID-19 pandemic.
From Trump’s statement, his opponents’ campaign though this withdraw is just an unfair tactic to raise his chance to win in the upcoming election. Trump clarified that he has instructed his representatives to stop negotiating until after the election when, immediately after he wins, they will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.
Even so, it is not yet clear whether Trump meant he would act on the bill next month after the election if he wins, or in his inauguration which will take place late January.
By what The Washington Post has reported, Democrats have tried for months for a national strategy but the administration never acted on it.
What is taking place right now is that airlines have begun to lay off their workers and employees. When the restrictions from the original CARES Act expired, both United and American mentioned that they would not reinstate any positions if the new aid package passes. Now the carriers have to see what will happen at the elections. If they were able to somehow push Trump’s representatives, maybe there could be damage control, before it is too late.