A look back at who received CARES Act Payroll Support Payments

It’s uncertain when there will be more government for the airline industry, and if so, will it extend to the private aviation side?

While the CARES Act payments have been widely credited for helping business jet operators get back on their feet quickly, they also have detractors, including NetJets, the largest private jet operator.

According to the Treasury Department, “A total of up to $25 billion is available for passenger air carriers; $4 billion for cargo air carriers; and $3 billion for certain contractors. As specified in section 4113 of the CARES Act, the amount to be received by each air carrier or contractor is based on its payroll expenses from April 2019 through September 2019, subject to proration. Funds received by these air carriers and contractors must exclusively be used for the continuation of payment of employee wages, salaries, and benefits.”

Still, it’s not clear that funds aren’t being used for acquisitions and expansion. While some see it as supporting job creation and helping the economy get back on its feet, others believe it calls unwanted attention to an industry that often finds itself a whipping post for politicians and environmental crusaders.

NetJets’ president Patrick Gallagher recently told us, “With the rising tide apparently lifting all ships in our industry, I’m hopeful as a taxpayer that some of those CARES Act funds get paid back. We see our competitors touting their recent success and return to pre-pandemic levels. I’m glad that those funds were available to keep people employed, but many of these companies today are out doing bolt-on acquisitions and spinning off new ventures. Personally, I am hopeful they are also paying back the tens of millions of dollars that they took to make payroll just a few months ago.”

Kenn Ricci, Principal of Directional Aviation, whose holdings include OneSky Flight and Constant Aviation, both recipients, said back in May, “This is not about propping up a service for the wealthy, as some have inaccurately portrayed it. It’s about preserving the jobs of thousands and ensuring that an industry that touches Americans across all income levels and geographies continues to thrive in a post-pandemic world.”

He added, “Even though it’s called payroll support, that’s not really what it is. You can’t lower your payroll…You can’t cut jobs, but you can use it for other activities. We are going to use this to improve safety and sustainability,”

Wherever you fall, it looks like the spout has finally run dry. According to the Treasury Department’s website, last updated on Nov. 16, no new agreements have been executed since. Oct. 16, when Superior Air Charter (better known as JetSuite) emerged from bankruptcy, promptly collected $6.5 million. It’s understood, it couldn’t receive funds earlier as it was essentially insolvent before its April Chapter 11 filing, which cost SuiteKey customers $50 million in lost flight credits.

Beyond major and regional airlines, OneSky Flight, parent for Flexjet, Sentient Jet, PrivateFly, and FXAIR, appears to have received the most money ($80.7 million). Wheels Up Partners Holdings (which includes Delta Private Jets) was close behind at $76.4 million.

Among brands that consumers of jet cards would likely know, next was Clay Lacy ($27 million); followed by Jet Linx Aviation ($20.6 million); XOJET Aviation ($15.2 million), Delux Public Charter, better known as JSX ($9.2 million); Exclusive Jets, which goes by FlyExclusive ($7.6 million); Executive Flight Services, known as Airshare ($7.1 million); Dumont Aircraft Charter and Dumont Aviation ($4.9 million); Priester Aviation ($4.6 million); Tradewind Aviation ($3.8 million); Northern Jet Management ($2.9 million); Advanced Air LLC, which operates flights for Surf Air ($2.8 million); Red Wing Aeroplane Company, which was recently acquired by XOJET Aviation ($2.8 million); Dreamline Aviation ($1.8 million); and Elevate Jet, a sister company to Private Jet Services Group ($976,764).

Not on the airline list, but included with Contracts is Signature Flight Support, the largest FBOs operator, which received $79.8 million. Constant Aviation, another Directional Aviation company, picked up $23.3 million. Many companies included air taxis and helicopter services, including Island Express Helicopters, which operated Kobe Bryant’s ill-fated flight.

Below are all 353 passenger carrier recipients of CARES Act PSP support in descending order by the amount of money received.

Passenger Carriers Receiving CARES Act Payroll Support Program Payments