Two House Democrats asked the Treasury Department watchdog to review airlines’ use of the more than $50 billion in aid for staff buyouts.
Carriers urged workers to take buyouts or offered extended leaves of absence.
The House Oversight committee is now urging the Treasury Department to press airlines on whether they used the aid package for buyouts. Two House Democrats have asked a Treasury Department watchdog to investigate whether airlines used a portion of a federal coronavirus relief package to pay for staffAirlines were prohibited from laying off staff as a condition of accepting $54 billion in taxpayer aid to weather the Covid-19 pandemic. Travel demand collapsed in the early days of the crisis. However, carriers were able toto take early retirement packages or extended leaves of absence.
Rep. Carolyn Maloney, D-N.Y., chairwoman of the House Committee on Oversight and Reform, and James Clyburn, D-S.C., chairman of the Select Subcommittee on the Coronavirus Crisis, on Thursday asked the Treasury Department's watchdog to review how airlines used the Covid-19 aid and whether it was used for buyouts or staff reductions, according to a letter reviewed by CNBC.