The US Department of Transportation has granted antitrust immunity for Dublin-based Aer Lingus to join an existing transatlantic joint venture between Oneworld member carriers American Airlines, British Airways, Level, Iberia, and Finnair, finalising tentative approval granted in November. This approval by the DOT gives Aer Lingus the ability to integrate into the joint venture’s network planning, pricing, and sales activities, giving the Oneworld carriers opportunity to expand capacity on certain routes and giving customers more options for travel to Ireland and other European destinations. American in a statement praised the DOT decision published on 21 December, adding that Aer Lingus customers would have access to more than 200 new US destinations as part of the joint venture, which first formed in 2010. Conditions set by the DOT to address any competition and public interest concerns include required compliance with slot remedies at London airports that exist as part of the Oneworld joint venture. The UK Competition and Markets Authority (CMA) in September extended its airport slot remedy commitment an additional three years until March 2024 with the aim of stabilizing the airline sector in the wake of the coronavirus pandemic, at which point it will reassess the Oneworld joint venture. Aer Lingus and the other carriers must also remove exclusivity clauses in their alliance agreements and DOT will review the alliance again in 2025. Competitors on transatlantic routes between the USA and Ireland include Delta Air Lines and Norwegian. Aer Lingus aims to fly transatlantic routes using Airbus A321 aircraft. The Dublin-based carrier has five A321-200NXneo aircraft and three A321-200 aircraft in service.

European regulators are calling for a “coordinated approach” from states under which borders should remain open to essential travel from the UK rather than blanket bans which several countries around the world have implemented in response to the emergence of a new strain of the coronavirus. The European Commission is urging states to implement the principles of October’s European Council Recommendation on co-ordinating free movement restrictions. ”While it is important to take swift temporary precautionary action to limit the further spread of the new strain of the virus and all non-essential travel to and from the UK should be discouraged, essential travel and transit of passengers should be facilitated,” the commission says. “Flight and train bans should be discontinued given the need to ensure essential travel and avoid supply chain disruptions.” A number of EU states are among the more than 40 countries to block travel from the UK after it on 19 December detailed the emergence of a new highly infectious strain of the coronavirus. European justice commissioner Didier Reynders says: “Given the current uncertainties and in light of the precautionary principle, member states should take coordinated action to discourage non-essential travel between the UK and the EU. At the same time, blanket travel bans should not prevent thousands of EU and UK citizens from returning to their homes.”
Transport commissioner Adina Valean adds: ”Within the EU, it is crucial that transport workers are exempted from any restrictive measures, such as quarantine and testing. We have to continue to maintain the supply chains intact, in line with our Green Lanes Communication.” It notes that until the end of December – when the UK will leave the European Union – free movement rules still apply. Tim Alderslade, chief executive of the association representing UK-registered carriers, Airlines UK, says: ”We note the Commission’s guidance but clearly this now needs to be enacted by EU member states, who have so far put in place their own rules. ”It remains to be seen what action they will take but our position remains that testing rather than flight bans is the only way to facilitate travel and get the economy and aviation moving again.”

US lawmakers are on the verge of passing a $900 billion relief package to supplement the CARES Act aid that expired in October that would give airlines $15 billion more in payroll support to help them manage through the ongoing coronavirus crisis. Senate majority leader Mitch McConnell announced a compromise between Republican and Democratic leadership on 20 December. The next day as the full Senate debated the legislation ahead of a vote, McConnell said "we're going to stay here until we finish tonight". The White House has said that President Donald Trump will be signing the coronavirus relief legislation, which is part of a broader $1.4 trillion government spending bill necessary to prevent federal agencies from shutting down. The bill will extend the payroll support for airline workers provided by the CARES Act that passed in March and expired in October. Airline industry groups and unions had sought a clean extension of the CARES Act, but the compromise legislation would extend payroll support for only four months instead of six months as the original stimulus did. The legislation requires carriers that accept the aid to reinstate employees involuntarily furloughed after the CARES Act expired on 1 October, and to compensate those returning employees for lost pay and benefits retroactive to 1 December, offset by any compensation paid during their furlough. Fort Worth-based American Airlines and Chicago-headquartered United Airlines together furloughed about 32,000 staff on that date. Atlanta-based Delta Air Lines reached agreements with all its work groups to avoid furloughs until 2021. United chief executive Scott Kirby in a statement welcomed the impending passage of the stimulus and said those employees eligible for recall can "temporarily come back to United through March 2021" for the duration of the proposed stimulus. "We don't expect customer demand to change much between now and the end of the first quarter of 2021," Kirby said. "We just don't see anything in the data that shows a huge difference in bookings over the next few months. That is why we expect the recall will be temporary." US airlines as of March employed around 460,000 people before the start of the pandemic travel downturn, industry group Airlines for America (A4A) reports. Carriers represented by that group are expected to end the year with 370,000 full-time equivalent jobs, and more furloughs may be necessary as the pandemic drags on into 2021. The stimulus extension for the broader US economy would include direct payments of up to $600 per eligible adult, an additional $300 per week in jobless benefits, and $25 billion in rental assistance. The US economy is slowly recovering after losing 22.2 million jobs since March, as the Bureau of Labor Statistics reports that only 12.4 million of those jobs were recovered as of November. Airline unions including the Association of Professional Flight Attendants, which represents American Airlines flight attendants, sought an extension of coronavirus stimulus for the entire US economy instead of stand-alone airline stimulus because air travel demand depends on the continued survival of other job sectors. The Regional Airline Association (RAA) industry group that represents carriers including SkyWest Airlines and Mesa Airlines tells Cirium they are thankful for compromise by Congress even though they would receive less relief than expected. "That compromise allows airlines to put workers back on the job where they are needed, it allows furloughed workers to move though their holiday season and into the next year without the heavy burden of joblessness," RAA tells Cirium. "This is a down payment and more work remains but nonetheless, this is a strong and helpful piece of legislation"
McConnell for months refused to co-ordinate with the Democratic-controlled House to extend stimulus legislation before benefits expired on 1 October. The House in May originally sought $3 trillion for more payroll relief and stimulus loans for businesses, which McConnell refused to consider in the Senate. The House later passed a revised $2 trillion stimulus, a bill he also refused to consider. Democrats aim to push for additional payroll support and coronavirus aid for the broader US economy in 2021 when President-elect Joe Biden takes office. House speaker Nancy Pelosi has said of the deal "I consider this a first step and again, more needs to be done".