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Economy

Airbus begins production of A220 aircraft

Brandon Moseley

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Airbus announced on Tuesday, that it has officially begun production of A220 aircraft at its Final Assembly Line hangar in Mobile.

Paul Gaskell is the President of A220 USA and head of the A220 Program in Mobile.

“The team is excited to start working in their new facility and to welcome a new customer,” said Pres. Gaskell. It’s a strong endorsement from JetBlue in this challenging time.”

Economic developer Dr. Nicole Jones said, “Last year economic developers were in agreement that the newly constructed A220 aircraft manufacturing facility would serve as a catalyst for jobs and aerospace investment in the near future and for years to come. JetBlue’s partnership is an example of how that statement has become a reality. The announcement demonstrates Airbus’ strength in our state, our nation, and the world. We are fortunate to have Airbus in Mobile, Alabama.”

Airbus said that its workforce in Mobile has begun production of the first U.S.-built A220 for U.S. airline company JetBlue. This announcement means the 270,000-square-foot hangar, where both A220-100 and A220-300 aircraft can be assembled, is officially open for business after an 18-month construction project.

The new Final Assembly Line allows Airbus to add A220 production to its Alabama manufacturing facility, which originally only built the A320.

“The expansion of our commercial aircraft production in Mobile to a second product line further solidifies Airbus’ standing as a truly global aircraft manufacturer and confirms that Airbus is an important part of the American manufacturing landscape,” Gaskell said. “This A220 assembly line will help satisfy the U.S. demand for the A220 aircraft.”

The facility houses five primary assembly stations where major airframe component assemblies come together for a completed aircraft in a flowline process.

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Airbus initially began producing A220 aircraft in Mobile in August 2019 using space in an existing A320 Final Assembly Line hangar and new support hangars. With the completion of the new Final Assembly Line hangar, the Airbus production site in Alabama has now doubled in size.

JetBlue will be the second customer served by the Mobile team, with its first U.S.-made A220 scheduled for delivery in the fourth quarter.

“The opening of Airbus’ A220 Final Assembly Line in Mobile demonstrates the company’s commitment to aircraft production in the United States, and Alabama is proud to be the home of its growing U.S. manufacturing presence,” said Alabama Commerce Secretary Greg Canfield. “This marks another significant milestone for Airbus and its Mobile production center, and we look forward to seeing many others in the future.”

The airline industry has been hit really hard by the coronavirus crisis. In January, there were 111,000 airline flights a day. By April that had dropped to just 28,000 flights a day and many of them are near empty. The number of tickets sold were off by 95 percent in April from April 2019.

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Economy

Ag commissioner concerned about collapsing beef prices

Brandon Moseley

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Alabama Department of Agriculture and Industries Commissioner Rick Pate (R) is concerned about dropping cattle prices and the impact that that is having on Alabama’s farmers and ranchers.

“We have been very dialed into the crisis Alabama Cattle Producers are up against,” Pate told the Alabama Political Reporter. “We will continue to closely monitor this dire situation and the market impact it is having on Alabama’s cattle farmers . . . as well as consumers.”

“After I was contacted by a number of Alabama’s stockyards and Cattle producers expressing concern with regards to market inconsistencies and increased consumer prices…… I wrote a letter to Senators Shelby and Jones requesting that they join in on a push for an investigation of the meat packing industry,” Pate said. “I am encouraged by the support we are getting from both Jones and Shelby. It’s also great to see Alabama Producers joining in together in an effort to formulate a strategy to address the current situation.”

Commissioner Pate shared the April 6 letter.

“Over the last five days, I have been contacted by many stockyards and cattle producers concerning the seemingly inconsistent drastic reduction in futures prices for cattle while at the same time consumers are purchasing more beef at grocery stores than at any time in recent memory and at the same time grocery store shelves are empty of beef,” Pate wrote the Senators. “There is concern from many in the cattle industry that the large meat packing companies are manipulating markets to put cattle produces and local stockyards at a disadvantage during a national crisis. Due to depressed cattle prices and uncertainty over cattle prices multiple stockyards will not conduct business this week.”

“I understands that Senators Chuck Grassley of Iowa and Mike Rounds of South Dakota have recently asked the U.S. Department of Justice and other federal agencies to investigate whether the large packing companies are manipulating beef markets to fix prices at a level that negatively impacts beef producers,” Pate wrote. “I urge you to join your fellow senators in calling for this investigation to make certain that Alabama cattle producers are not suffering from artificially low beef prices.”

COVID-19 has impacted many areas of our lives. That includes at the grocery store where selection of beef, pork, and chicken products can be a hit and miss proposition for shoppers due to hoarders and to less cattle, hogs, and chicken being killed because of slaughterhouses suffering high absenteeism due to COVID-19. The big four major packers: Tyson Foods, Cargill/Excel, J.B.S. Swift, and National Beef process over 80 percent of the cattle. When their daily productions dropped there was an oversized effect on cash and futures markets, because of the lack of competition and because 70 percent of the cattle they process are forward contracted. If a feedlot was not forward contracted they often could not sell their cattle at any price.

The spot market or cash market generally determines live cattle prices. Some in the industry have accused the big four meatpackers of engaging in an “allied strategy” to manipulate the spot market so that the four major companies can profit at the expense of farmers and ranchers.

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Sen. Grassley praised President Donald J. Trump’s recent call for an investigation into possible anticompetitive behavior in the beef industry. Last month, Grassley lodged a similar request with the Departments of Justice and Agriculture.

“While consumers are facing record-level prices at the meat counter, America’s Beef producers are being forced to sell their cattle to meatpackers at a loss, if they can sell them at all,” Sen. Grassley said. “Consolidation in the meatpacking industry has exacerbated the market pain on both sides of the supply chain, and producers and consumers need to know whether unfair business practices by packers are to blame.”

“I’ve called on the Trump administration to look into unfair or anticompetitive practices and I’m grateful that President Trump has made this issue a priority,” Grassley added. “USDA is looking into unfair pricing practices. DOJ must also examine if any collusion within the packing industry has taken place in violation of our antitrust laws.”

Grassley has long raised concerns about consolidation in the meatpacking industry and pressed USDA to protect independent producers.

The National Cattlemen’s Beef Association recently called for an investigation into the business practices that lead to unfair marketplace for beef producers. R-CALF filed suit against the Big Four packers last year alleging that the four companies are engaging in an “allied strategy” in defiance of U.S. anti-trust law.

Rick Pate is a cattle rancher in Lowndes County. The Pate family has raised Charolais beef cattle in Alabama for decades.

(Original writing and research by Montgomery area writer Amy McGhee contributed to this report. McGhee’s parents have a Black Angus beef cattle farm in Tennessee.)

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Economy

Talladega will hold GEICO 500 on June 21 without fans in the stands

Brandon Moseley

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The National Association for Stock Car Auto Racing (NASCAR) has announced that the GEICO 500, MoneyLion 300 and General Tire 200 automobile races have all been rescheduled for the weekend of June 20 to 21.

They will be raced without fans in attendance.

“We are excited that NASCAR has announced the rescheduling of our April race weekend to June 20-21,” said Talladega Superspeedway President Brian Crichton. “While we will have cars on track, in the interest of the health and safety of all involved, including fans, NASCAR will be running our three races – the GEICO 500, MoneyLion 300 and General Tire 200 – without fans in attendance in accordance with the State of Alabama, CDC and public health agency standards and protocols.”

The Cup Series GEICO 500 will be held on Sunday, June at 2:00 pm CST.

The Xfinity series MoneyLion 300 will be held on Saturday, June 20 at 4:30 pm CST.

The ARCA series General Tire 200 will be held on Saturday, June 20, 2020 at 1:00 pm CST.

“NASCAR, like Talladega Superspeedway, prides itself in being fan-friendly, and the fans drive everything we do,” Crichton said. “The decision to race without fans is focused on the long-term health of you and our sport. NASCAR has a great respect for the responsibility that comes with a return to competition, and after thorough collaboration with public officials, medical experts and state and federal officials, NASCAR has implemented a comprehensive plan to ensure the health and safety of the competitors and surrounding communities.”

“For our June 20-21 events, we hope you will enjoy watching and listening to the 3- and 4-wide racing at the sport’s Biggest and Most Competitive track via our broadcast partners FOX, FS1 and MRN Radio,” Crichton concluded. “We will persevere through this together.”

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Ticketholders may elect to receive a credit for the full amount paid plus an additional 20 percent of total amount paid to apply towards a future event, including, but not limited to, grandstand seating, infield, camping, fan hospitality, and Talladega Garage Experience. The 120 percemt event credit can be used in a single transaction during the remainder of the 2020 season and entire 2021 season for a NASCAR sanctioned event at any NASCAR-owned track, subject to availability. Elections for an event credit or refund must be submitted by June 14, 2020.
Ticketholders may apply here:
https://www.talladegasuperspeedway.com/Vanity-Pages/2020/Assistance.aspx

Motorsports are the only major pro sports league that has resumed play after the coronavirus global pandemic struck in mid-March. The NBA is considering a proposal to playout the remainder of their season and playoffs sequestered at the Wide World of Sports complex at Disneyworld in Orlando, Florida with no fans present. The NHL is in the process of considering a similar proposal to finish this year’s hockey season. Major League Baseball has not played a single game of their season yet. MLB owners have made a proposal that the league play an 80 game season without fans present. The idea is meeting with skepticism from MLB players due to a controversial proposal capping players salaries for this season in a 50:50 revenue sharing agreement. The proposal that would dramatically reduce MLB players’ salaries for this season. Horse racing and mixed martial arts have held some sporting events in recent weeks.

NASCAR has already held two races at Darlington and one at Charlotte after resuming racing on May 17. Kevin Harvik won the Real Heroes 400 driving a Ford and Denny Hamlin won the Toyota 500 driving a Toyota in the first two Cup Series races since NASCAR resumed racing after a ten week hiatus. NASCAR intends to run a 36 race season this year.

Motorsports are the only major professional sports league played at a major league level in the state of Alabama. In addition to the Talladega Superspeedway, the state is also home to the Barber Motorsports Parks near Leeds. The Barber facility hosts both professional motorcycle racing and the Honda Indy Grand Prix of Alabama, a NTT Indycar series event. That event was cancelled due to efforts to shut down the economy to fight the spread of the coronavirus.

The COVID-19 global pandemic has already killed 98,705 Americans through Sunday morning.

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Economy

Alabama nonprofit hopes federal food aid for children continues through summer

Eddie Burkhalter

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Almost half of Alabamians experienced a loss in income since the COVID-19 crisis began, and more than 13 percent said they hadn’t had enough to eat during the prior week, according to a recent survey, but there is help for families with children struggling with food insecurity. 

Two federal programs combined can help keep Alabamians fed during coronavirus’s continued impact on health and finances, but there’s work to be done to ensure those programs are fully used, and will continue to help during this time of need, according to Alabama Arise, a nonprofit coalition of advocates focused on poverty. 

Celida Soto Garcia, Alabama Arise’s hunger advocacy coordinator, on Friday discussed the U.S. Department of Agriculture’s  Community Eligibility Provision (CEP), which allows schools with high poverty rates to serve breakfast and lunch to all students, regardless of a parent’s income. 

There are still a little more than 100 school systems in Alabama that would qualify under the program, but haven’t yet applied to do so, Garcia said. 

“Schools that had implemented CEP prior to the pandemic made it a lot easier to distribute food. They didn’t have to worry about eligibility and delayed distribution,” Garcia said. 

Garcia said the coronavirus crisis has brought attention to the CEP program and that some school board officials and child nutrition professionals are beginning to identify which school systems could qualify for the aid. 

“So that of course was a benefit prior to the pandemic, and now there’s just an increased need for it,” Garcia said. 

Carol Gundlach, a policy analyst at Alabama Arise, discussed with APR on Friday the pandemic Electronic Benefit program (P-EBT), which gives parents of children who receive free and reduced lunches a debit card loaded with value of each child’s school meals from March 18 to May 31. The cards can be used at any grocery store. 

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Immigrant families with children enrolled in school can also receive the P-EBT cards, Gundlach said. 

“We of course hope that Congress will see their way to continuing pandemic EBT for the remainder of this summer, because of course, children still have to eat, whether school is in or not, and families are still going to have to pay for those extra meals,” Gunlach said. 

Just more than 13 percent of Alabamians polled said they didn’t have enough to eat during the week prior, according to a survey by the U.S. Census Bureau, and 43 percent said they’d experienced a loss of income due to the COVID-19 crisis. 

“So clearly parents are going to have a very difficult time continuing to feed the whole family through the summer,” Gundlach said. “It’s really a serious crisis and continuing Pandemic EBT would make a really big difference.” 

Many individual school systems across the state are working hard to supply sack lunches to students in need, but without federal aid it will be hard to keep those meals coming all summer, Gundlach said. 

There was an expansion of P-EBT for the remainder of the summer, and a 15 percent increase in regular Supplemental Nutrition Assistance Program benefits, known as food stamps, in the $3 trillion Heroes ACT, which Democrats in the U.S. House passed last week. Gundlach said she hopes the U.S. senators from Alabama get behind the Heroes Act. 

Senate Majority Leader Mitch McConnell, R-Kentuky, said last week, however, that if the Senate takes up another round of coronavirus relief legislation it won’t look like the House version, according to NBC News. 

Gundlach also wanted those without children to know that there’s additional food assistance available to them. 

The Family’s First Act temporarily suspended SNAP’s three-month time limit on benefits, and Gundlach said that even if a person was denied assistance before because they hit that time limit, they can reapply and receive that aid.

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Congress

Sen. Doug Jones: COVID-19 relief should not be a partisan issue

Chip Brownlee

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Sen. Doug Jones, D-Alabama, said Friday during a live-streamed press conference that the Senate should begin debating the next COVID-19 relief package, and Republicans in Congress should stop playing partisan politics with urgently needed COVID-19 relief.

“That bill is not perfect at all. There are a number of things in there that I don’t think will be in a final bill,” Jones said of the House’s $3 trillion HEROES Act. “It’s not perfect, but it is something to start talking about. It is a shame that Senate Republicans have made this into a partisan issue, trying to say that this was some kind of Democratic ‘wish list.’ It is not.”

The $3 trillion relief package includes nearly $1 trillion in aid to struggling state and local governments and another round of $1,200 payments to individual taxpayers and up to $6,000 per family.

The bill, which passed the House last week along partisan lines, appropriates billions for COVID-19 testing and contact-tracing and provides money for hazard pay for essential workers, among many other provisions its 1,800 pages.

“It is a wish list for cities and counties, which we’ve been talking about,” Jones said. “The first line essential workers that have been there that we don’t need to lose — so much of our workforces in city and county governments. It’s a wish list for the CDC and the NIH to continue funding for research, not just for a vaccine, but for therapeutics for how to treat this virus until we get that vaccine. It’s a wish list for businesses.”

The Paycheck Protection Program, which provides loans and grants to small businesses and nonprofit organizations, would also get additional funding in the new relief bill.

Jones has called for a plan to give small businesses another round of help in paying employees by using payroll processors instead of banks, which have, at times, been slow in delivering aid to businesses and have prioritized clients with whom the banks had a pre-existing relationship.

Jones urged lawmakers to consider using payroll companies rather than banks when the first installment of the Payroll Protection Program was taking shape.

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The House’s HEROES Act also includes provisions that clarify PPP provisions for small businesses and would ensure that PPP funding can reach underserved communities and nonprofits. It adds $10 billion for emergency grants through the Economic Injury Disaster Loan Program.

“It has a form of the program that we have — not as scaled up as much as I would lie, but it’s got a program that will help keep businesses operating and their payroll operating as a supplement, an add on to the Payroll Protection Program,” Jones said. “So it’s a wish list, really, for the American people. It’s just a shame that it has been politicized as partisan, because it should not. None of this should be partisan.”

President Donald Trump has threatened to veto the House-passed legislation were the Senate to pass it, and House and Senate Republicans have decried the legislation as too expansive.

Republican members of Alabama’s congressional delegation have called it Speaker Nancy Pelosi’s “wish list” and U.S. Rep. Mo Brooks called it “socialist.”

The 1,800-page bill also includes $175 billion in housing support, student loan forgiveness and a new employee retention tax credit.

Republicans have particularly opposed provisions in the bill that would require all voters to be able to vote by mail beginning in November and another that would temporarily repeal a provision of the 2017 Republican tax law that limited federal deductions for state and local taxes.

Trump has also opposed a provision in the bill that would provide $25 billion for the U.S. Postal Service, which has struggled amid the COVID-19 crisis and could become insolvent without support.

The HEROES Act was declared by some as “dead on arrival” in the Republican-controlled Senate. Senate Majority Leader Mitch McConnell, R-Kentucky, has so far refused to take up the bill. Senators returned back to their home states this week until early June.

“The goal when we get back is maybe … enough talks will be going on, that we can pass some legislation in a bipartisan way,” Jones said. “Because there is an urgency.”

Jones said he didn’t believe the bill would pass as it is currently written, and that he doesn’t know what the final version would look like, but “we need to be talking about it. It’s a starting point,” he said.

The legislation also provides $75 billion for COVID-19 testing and contact tracing, which public health experts say are essential for reopening the economy safely and avoiding a second wave of the virus in the fall.

On Thursday, Gov. Kay Ivey loosened more of the state’s “safer-at-home” restrictions, allowing entertainment venues to reopen Friday and sports to resume by mid-June.

Jones urged Alabamians to continue adhering to social-distancing guidelines, to listen to public health officials and to wear masks. He said reopening the economy and preserving public health don’t have to be at odds.

“I think the governor has done as great a job as she could to try to be very strategic, to be thoughtful on how to do this,” Jones said. “Unfortunately, I also believe that a lot of people in Alabama are only hearing part of her message. They’re only hearing the message that you can go to church, you can go to the theater, you can go out to eat, and they’re not listening as much to the messages about personal responsibility.”

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