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Lawmakers want probe of airline staff buyouts
Two lawmakers called for a federal investigation into how airlines spent the $54 billion they received in Covid taxpayer relief.
Rep. Carolyn Maloney and Rep. James Clyburn, asked the Treasury Department’s inspector general to look into whether carriers used funds to pay off employees with buyouts or early-retirement offers to reduce wage costs.
The bailouts were specifically given to keep airline workers on the payroll.
From early 2020, airlines offered incentives to trim their labor costs by encouraging thousands of workers to leave or go on long-term leave.
“American taxpayers supported the airline industry when nearly 75% of commercial flights were grounded. Americans deserve transparency into how airlines have used federal funds they have received,” the lawmakers wrote in a letter to the deputy inspector general of the Treasury Department.
At the time air travel plunged by over 90%.
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