In push for normalcy, industries, nations test the waters

Treasury to begin distributing virus relief money to tribes

WASHINGTON, May 6, (AP): Decisions about when it’s safe to reopen businesses have created fissures at the federal and state level, but that movement has already begun in dozens of states and across several industries.

The owner of Outback Steakhouse and other national restaurant chains is opening the doors at hundreds of restaurants in multiple states Tuesday.

There are already 23 Outback Steakhouse restaurants open for dine-in service at limited capacity, and Bloomin’ Brands said 336 dining rooms will reopen Tuesday.

Children’s clothing company Carter’s plans to reopen some of its stores later this week. Although the chain closed its retail stores because of the pandemic. Carter’s has been selling apparel online and through retailers that have remained open, like Target and Walmart.

PERILOUS JOURNEYS:

Even as major cruise and airlines prepare for some sort of return to mobility, the economic damage from the outbreak raises questions about what kind of travel industry will emerge.

United Airlines is planning deep staffing cuts for pilots, managers and administrative staff in October after federal aid to help cover payroll costs runs out. The Chicago carrier warned its 12,250 pilots in a memo to prepare for “displacement” that affects 30% of them, or nearly 3,700 pilots. In a separate memo, United told employees it is planning at least a 30% cut in management and administrative staff, or 3,450 of them. Under terms of $5 billion in federal virusrelief aid, United can’t lay off employees through September.

Norwegian Cruise Line has “substantial doubt” that it will be able to continue as a going concern without new funding or terms of debt. The cruise operator said in a regulatory filing that it was in compliance with all debt covenants as of March 31, but that it might need additional amendments from lenders. There’s no guarantee Norwegian will get the approval for the amendments, which could lead to an inability to continue operations.

Virgin Atlantic is planning to cut 3,150 jobs and end its operations at London’s Gatwick Airport because of what it called the most devastating crisis since the company’s first flight 36 years ago.

The airline, which is in the process of applying for emergency loans from the British government, said job losses will be across the board. It’s also planning to reduce the size of its fleet.

CENTRAL GOVERNMENTS & BANKS: The seizing up of the global economy is distorting trade and smothering production.

A survey of private economic analysts by Mexico’s central bank shows they expect the country’s economy to experience a whopping 14.1% contraction in the second quarter. On average, the 38 analysts surveyed expect a net drop in GDP of 7.27% for the year as a whole.

But remittances, Mexico’s largest source of income after manufacturing exports, actually rose in March, despite the tough economic conditions in the United States, where most Mexican migrants

work. President Andrés Manuel López Obrador said the money sent home by migrants in March amounted to $4 billion, a 35% rise compared to February.

The end of most economic activity during April’s strict lockdown drove unemployment in Spain to 3.8 million people, the highest figure in nearly four years.

Hong Kong will begin relaxing some social distancing measures, allowing businesses such as gyms, movie theaters and beauty salons to reopen. Businesses must continue to observe social distancing measures, Hong Kong chief executive Carrie Lam said Tuesday.

Several German states are setting out plans to reopen restaurants and hotels in the coming weeks.

Governor Markus Soeder of Bavaria, the state with Germany’s highest per-capita coronavirus infection rate, said Tuesday that restaurants will be able to serve outdoors starting May 18th. Hotels can open May 30, but their saunas, swimming pools and other facilities will remain closed.

The U.S. Treasury Department said Tuesday that it will begin doling out billions to help tribes respond and recover from the coronavirus more than a week after a congressional deadline and after being sued over who is eligible for the money.

The $2.2 trillion federal rescue package approved in late March set aside $8 billion for tribal governments. The money was supposed to

be distributed by April 26, but the Treasury Department said it was grappling with how to do it.

Tribes sued the agency to keep the money from going to Alaska Native corporations, which own most Native lands in the state under a 1971 settlement but are not tribal governments. U.S. District Judge Amit Mehta in Washington, D.C., gave the tribes a victory last week by limiting the funding to the country’s 574 federally recognized tribes while he settles the question of eligibility.

The Treasury Department said it will withhold an undisclosed amount calculated for the corporations until the case is resolved.

President Donald Trump, who met with tribal leaders Tuesday during a trip to Arizona, called the funding the “single largest investment in Indian Country in our history.” Gila River Indian Community Gov. Stephen Roe Lewis thanked Trump but said the money is “woefully inadequate to meet our overall needs.”

Tribes had sought $20 billion to stay afloat, respond to the pandemic and recover after having to shut down casinos, tourism operations and other businesses that serve as their main moneymakers.

Payments totaling $4.8 billion will go to tribes over the next several days, based on population. Further payments based on the number of tribal employees and money that tribes have spent responding to the coronavirus will go out later, the Treasury Department said.

“Our approach is based on the fair balancing of tribal needs,” Treasury Secretary Steven Mnuchin said in a statement.

The smallest tribes, with a population of less than 37, will receive a minimum of $100,000, the department said. The Navajo Nation, one of the country’s largest tribes with about 350,000 citizens, will receive $600 million, Trump said.

The virus has hit the Navajo Nation harder than any other tribe. As of Monday, the tribe reported 2,474 confirmed cases and 73 deaths on a reservation that extends into Arizona, New Mexico and Utah.

States, cities and counties already have received funding under the relief package. Cherokee Nation Principal Chief Chuck Hoskin Jr. said tribes have suffered crippling economic effects from the pandemic.