University at Buffalo School of Management

Relief takes flight The Coronavirus Aid, Relief and Economic Security (CARES) Act pumped more than $50 billion in grants and loans into the airline industry since it was signed into law in March 2020. At United, Joanne Rinaldo says their executives were among the first to recog- nize the oncoming hit to the airline indus- try and went to Washington to lobby for relief. "The CARES Act helped airlines and other companies affected by the pandemic to pay for employee salaries and benefits during the economic down- turn," she says. And while the relief package kept employees on the payroll during the pandemic, those benefits expired Sept. 30, leaving thousands unemployed. "Those of us in technology or management can transi- tion our skills more easily to other industries," Rinaldo says. "Pilots and flight attendants have such specialized skills that they have limited options for where they can work. Their livelihoods are devastated." Allison Brooks, BS '15, MS '16, CPA, is manager of trea- sury and corporate finance at JetBlue. There, she manages day-to-day cash issues and longer-term strategic planning, so the company has the funds it needs to survive a crisis like COVID-19 and recover financially once the pandemic is over. She says the additional aid provided to the airline industry by December's COVID- 19 relief bill has been a sigh of relief. "We were optimistic a second CARES Act would be passed and are grateful an agreement was made heading into 2021," she says. "With the vaccine rollout and the additional payroll support, we are hopeful these developments will help us begin to recover." Back to the old normal? Brooks has flown several times since the start of the pandemic and says it was a good experience, but understands why it can be stressful. "I commend the industry for taking immediate measures to improve safety and customer confidence when flying," she says. "I'm curious to see if in the long term we continue to do things like wear masks on planes. The positive vaccine news gives us hope for a better 2021, but we still have a long road to recovery." Cristian Tiu sees a long- term impact on business travel, as video conferenc- ing technology has become ubiquitous throughout the pandemic. "You can cut about 25% of the international flying and your business can continue as usual, with people meeting through Zoom instead," he says. "If that happens, then obvi- ously it will increase costs for airlines and decrease the frequency of international flights—and I don't know exactly how the industry will cope." He does see a silver lining in all of this, however. "The COVID crisis will make the airlines more customer friendly—cleaner, more comfortable seating and with more flights on time," Tiu says. At Sarasota Bradenton, Rick Piccolo agrees that it'll be a slower recovery for business destinations, but leisure desti- nations like his are doing better because people want to visit places where they can get away and be outside. "In Sarasota, you can visit the beaches, kayak, golf—a lot of things that are conducive to social distancing, so that's great for us," he says. "Airlines and airports have made tremendous efforts to ensure your flying experience is safe, and we hope more people will get back in the air soon." Brooks Tiu Pilots and flight attendants have such special- ized skills that they have limited options for where they can work. Their livelihoods are devastated. — Joanne Rinaldo, BS '95 Former Senior Manager United Airlines 12 Buffalo Business Spring 2021

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