The U.S. Treasury Department has revealed the list of aviation providers who have applied for the $16 billion allocated for industry workers’ payroll support.
The Payroll Support Program extension (PSP2) under Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP Extension Law) provides payroll support to passenger air carriers and certain contractors for the continuation of payment of employee wages, salaries, and benefits.
A total of up to $15 billion is available for passenger air carriers, and up to $1 billion is available for certain contractors. As specified in section 403 of the PSP Extension Law, the amount to be received by each passenger air carrier or contractor is based on its payroll. According to the Treasury website, funds received by these air carriers and contractors must exclusively be used for the continuation of payment of employee wages, salaries, and benefits.
Part 121 carriers – scheduled airlines like American and Delta – have already been allocated over $12 billion. Below are some notable private aviation companies that have applied for payroll support in this follow-up program. The amount requested was not revealed.
The program is widely credited with helping private jet operators surge back to around 90% of pre-COVID-19 volume. Despite the strong recovery, many companies are still flying below 2019 levels with strong downward price pressure in the charter market.
Business aviation accounts for over one million jobs in the U.S. However, there was pushback last time from both within and outside the industry. You can view the full list on the Treasury Department website.
To receive funds, companies have to show both need and that their ongoing business is viable. JetSuite cited its financial condition before bankruptcy as why it could not apply for CARES Act funds. After emerging from Chapter 11 in September, it received $6.5 million.