U.S. awarding $482.3 mln in aviation manufacturing assistance (updated)

US Aerospace

13/09/2021 17:00

(Adds more companies, background)
    By David Shepardson
    WASHINGTON, Sept 13 (Reuters) - The U.S. Transportation
Department said it was offering  $482.3 million in aviation
manufacturing assistance to 313 businesses, including up to
$75.5 million to Spirit AeroSystems  SPR.N . 
    Congress earlier this year created a $3 billion aviation
manufacturing payroll subsidy program that will cover up to half
of eligible companies' compensation costs for as long as six
months. Ohio-based Parker-Hannifin Corp  PH.N  was offered up to
$39.7 million, Connecticut-based Hexcel Corp  HXL.N  offered
$20.9 million and Astronics Corp  ATRO.O  $14.7 million.
    The companies did not immediately respond to requests for
comment.
    Of the 313 companies receiving funds, 188 of them -- 60% --
had fewer than 100 employees at the end of calendar year 2020.
    The funds will helping support as many as 22,500 jobs
nationwide.
    More than 100,000 jobs have been lost in the aerospace
industry since the start of the COVID-19 pandemic, according to
the Transportation Department. Before then, the U.S. aerospace
industry employed approximately 2.2 million workers, including
1.2 million who worked in various parts of the supply chain
nationwide.
    The offer requires companies to commit to not conducting
furloughs without employee consent or laying off employees
covered by subsidies during the six-month period.
    Companies eligible include aircraft, engine, propeller or
component manufacturers and companies that repair or overhaul
airplanes and parts.
    The subsidy program cannot cover more than 25% of an
employer’s total U.S. workforce as of April 2020 and can only
cover employees with total annual compensation of $200,000 or
less.
    To qualify, a company must have involuntarily furloughed or
laid off at least 10% of its total workforce, or have
experienced at least a 15% decline in 2020 total operating
revenues.
    Applications for a second round of funding closed Sept. 1
and additional funding recipients will be announced this fall,
the Transportation Department said.

 (Reporting by David Shepardson; Editing by Mark Porter)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))