By David Shepardson
BALTIMORE, April 27 (Reuters) – U.S. Transportation Secretary Sean Duffy said on Monday that Congress would need to play a role in a request by U.S. budget airlines for $2.5 billion in government aid to address the spike in jet fuel costs during the U.S.-Israeli war on Iran.
“I don’t have that money – can’t just pull it out of the couch cushions. There would have to be a lot of government engagement and a bipartisan effort to find the funds for them. You can’t snap your fingers,” Duffy told reporters on the sidelines of an event.
“Congress would have to get involved as well with that kind of number,” Duffy said.
The Association of Value Airlines confirmed it had asked President Donald Trump’s administration to create a $2.5 billion liquidity pool, used exclusively to offset incremental fuel costs “as a necessary and targeted measure to stabilize operations and keep airfares affordable during this period of volatility.”
Duffy said he took part in 10 minutes of an hour-long meeting with the low-cost carriers last week but had to leave early to attend a White House meeting. The request came up after he left.
“We got to see what the requests are, get their information, have them make the pitch, have them make the sell,” Duffy said. “We’ll see.”
Last week, Duffy expressed hesitation about a plan to invest $500 million to help Spirit Airlines exit bankruptcy.
High fuel prices are affecting all airlines, Southwest Airlines CEO Bob Jordan told reporters at an event to unveil a Boeing 737 MAX with a special U.S. livery in honor of the country’s 250th anniversary.
“Every airline is suffering from high fuel prices,” Jordan said. He declined to way on other requests but said: “It’s your job to build your business in a way that you’re resilient and you can survive these things because they happen.”
(Reporting by David Shepardson; Editing by David Gregorio)
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