Stewart airlines seeking bailout

By Wayne A. Hall
Posted 7/1/20

The two major airlines serving New York Stewart International Airport, Jet Blue and Allegiant are both positioning themselves for surviving unprecedented financial turmoil from the economic fallout …

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Stewart airlines seeking bailout

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The two major airlines serving New York Stewart International Airport, Jet Blue and Allegiant are both positioning themselves for surviving unprecedented financial turmoil from the economic fallout from COVID-19 pandemic.

Jet Blue reports losing $2.5 million a day from sagging demand.

Help comes from the just passed congressional CARES Act that provides payroll support to airlines whose flights are now often flying empty.

This proposed $50 billion bailout of airlines by the Trump administration includes a survival lifeline for Jet Blue, the popular airline that helped Stewart International survive the recent loss of the wildly popular Norwegian Air whose own money troubles forced it to leave Stewart for overseas destinations.

The new stimulus bailout rules say airlines only need to serve one airport per city.

So Jet Blue has decided to serve JFK and Newark, while suspending service at LaGuardia and Stewart and Westchester airports with no date given for returning to Stewart.

Meanwhile, Stewart’s only other regular airline, Allegiant, has placed an immediate moratorium on all “non essential capital spending and discretionary spending.”

And there’s also a Allegiant company hiring freeze.

“With these initiatives we believe we are well positioned to mitigate all our non-essential capital spending and discretionary spending,” Allegiant says in a news release.

Some company officials are not even drawing salaries.

There is also a company hiring freeze.

Also, Allegiant is suspending as much as $320 million in planned spending for the planned Sunseeker Resort in Punta Gorda, Florida.

The Allegiance’s company board of directors is also deferring salaries.

And 700 company employees have taken voluntary 60- day leaves without compensation.

Delta, another Stewart regular is getting 4.6 billion in federal payroll aid while United, another Stewart airline is getting five billion in federal payroll aid.

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