In September, the U.S. Transportation Department made $482.3 million in assistance available to 313 aviation manufacturing businesses to offset losses caused by the pandemic in order to allow manufacturers to keep employees. Now, the department is offering an additional $184 million to 158 aviation manufacturers for payroll assistance.
Out of the 469 companies that have received the department's aid so far, 63% had fewer than 100 employees in the spring of 2020. According to the department, more than 100,000 jobs in this sector have been lost due to the pandemic.
November's additional assistance includes $17.5 million to BAE System Controls
Congress has provided its own assistance to aviation manufacturers, establishing a $3 billion payroll subsidy program. The program is meant to cover up to half of eligible claimants' payroll costs for up to six months. Eligible manufacturers include those that make aircraft, engine, propeller, or component parts, as well as those that repair planes or their parts.
In order to remain eligible for government aid, companies must not carry out any furloughs without worker consent and must not lay off any of the workers covered by the government's assistance during the period covered by the program. Basically, companies can't fire or furlough workers while the government is paying for them to work.
In order to qualify in the first place, manufacturers must have involuntarily laid off or furloughed at least 10% of their employees, or have seen a 15% drop in total revenue in 2020.
According to Transportation Secretary Pete Buttigieg, the payroll assistance "will save thousands of manufacturing jobs, support hundreds of small businesses, and help keep America's aviation industry strong."
