A car pulls to the curb of Departures at La Guardia airport during the coronavirus outbreak Saturday, April 4, 2020, in the Queens borough of New York. New York is the coronavirus pandemic's U.S. epicenter. (AP Photo/Frank Franklin II)
The Trump administration is seeking to limit the drastic cuts that ailing U.S. airlines can make as they struggle through the COVID-19 pandemic.
The Transportation Department on Tuesday finalized guidance requiring airlines to maintain a minimum level of service to be eligible for some $50 billion in federal aid that was included in the $2 trillion relief package that President Trump signed March 27.
"The order is designed to ensure that covered air carriers maintain a defined minimum level of flights to communities they served prior to March 1," the department said in a statement.
The requirements will remain in place through at least September 30.
The DOT released the final version of the rule as major U.S. carriers such as American Airlines and United Airlines have instituted dramatic flight cancellations at some of the nation's busiest airports. As passenger travel has slowed to a trickle, American slashed its daily flights from John F. Kennedy, LaGuardia, and Newark airports from 270 to 13. United has meanwhile cut its operations from 157 flights to 17.
Airlines said that they were reviewing the Transportation Department's final order to see whether they would need to seek a waiver from the agency to maintain the flight reductions. One industry insider said that a previous Transportation Department action relaxing the strict use-it-or-lose-it rules governing the lucrative takeoff slots at busy airports may cover the flight reductions that have already been implemented.
However, the DOT's final rule states that some canceled routes may need to be restarted for airlines to receive aid through the Coronavirus Aid, Relief and Economic Security, or CARES, Act.
The final rules ease some of the measures in a draft proposal from last week. Budget carriers such as Allegiant, Spirit, and Sun Country, for example, had argued that the minimum service requirements would impose a disproportionate burden on their operations. The DOT appeared to recognize this feedback in adding a category that allows greater leniency for airlines that make up less than 10 percent of domestic capacity.
"The Department has determined that the impact on these carriers from the approach proposed … would be disproportionate and potentially at odds with the aims of the CARES Act," the rule says. Similarly, it states, "The Department recognizes the significant operational and financial challenges that would be imposed on carriers operating seasonal services should they be required to operate them year-round."
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
