COVID-19 live updates: Cruise ship must remain at sea after 55 people test positive

COVID-19 live updates: Cruise ship must remain at sea after 55 people test positive
COVID-19 live updates: Cruise ship must remain at sea after 55 people test positive
API/Getty Images

(NEW YORK) — As the COVID-19 pandemic has swept the globe, more than 5.3 million people have died from the disease worldwide, including over 812,000 Americans, according to real-time data compiled by Johns Hopkins University’s Center for Systems Science and Engineering.

About 61.7% of the population in the United States is fully vaccinated against COVID-19, according to data from the Centers for Disease Control and Prevention.

Here’s how the news is developing. All times Eastern.

Dec 23, 11:47 am
Nearly 30,000 Americans have died of COVID since Thanksgiving

An ABC News analysis of federal data finds that nearly 30,000 Americans have died of COVID-19 since Thanksgiving as the omicron variant spreads across the country.

The U.S. is currently averaging more than 1,200 deaths per day, an increase of 23.3% in the last month with death rates up across almost all age groups.

Nationwide, about 161,000 new COVID cases are being reported every day, up nearly 75% in the last month.

This marks the highest daily case average since Labor Day, and means the U.S. will likely surpass the daily peaks seen during the delta-fueled wave over the summer.

Fourteen states, including New York, New Jersey, Illinois and Wisconsin, are reporting their highest daily case numbers in about a year.

ABC News’ Arielle Mitropoulos

Dec 23, 10:41 am
AstraZeneca monoclonal antibody works against omicron, studies show

New studies are offering additional reassurance that AstraZeneca’s monoclonal antibody drug works against omicron.

The company’s EVUSHELD retains neutralization activity against omicron, according to “live” virus neutralization data from both University College Oxford and Washington University School of Medicine.

AstraZeneca announced last week that its antibody drug would likely retain protection against omicron. These studies add to that growing evidence.

AstraZeneca’s monoclonal antibody was authorized on Dec. 8, but for a narrow group of people. It is authorized as a way to prevent COVID-19 among people who are immune compromised, or people who are allergic to vaccine components. It is not authorized as a way to treat COVID-19 among people who have already tested positive.

There are three monoclonal antibody treatments currently authorized to treat people who already have COVID-19. Two of those treatments — those made by Eli Lilly and Regeneron — appear to have very little activity against omicron. A third treatment, made by Vir and GlaxoSmithKline, appears to work against omicron but is currently in short supply. The companies are working to scale up production.

ABC News’ Sony Salzman

Dec 23, 10:39 am
Cruise ship can’t enter Curacao or Aruba after 55 people test positive for COVID

A Royal Caribbean ship has been blocked from entering Curacao and Aruba after 55 crew members and guests tested positive for COVID-19.

The ship, named Odyssey of the Sea, set sail from Florida on Dec. 18 and had planned to visit the Caribbean  for eight nights.

According to the cruise line, 95% of all people onboard were fully vaccinated. The crew and guests who tested positive were all “fully vaccinated and mildly symptomatic or asymptomatic.”

Close contacts of the positive patients have been placed in quarantine and will be monitored for 24 hours prior to testing.

The ship will remain at sea and is scheduled to return to Florida on Dec. 26.

ABC News’ Mina Kaji

Dec 23, 9:56 am
FDA authorizes Merck pill for some

The Food and Drug Administration authorized Merck’s COVID-19 pill Thursday for certain patients.

The authorization is specifically for adults who are at high-risk for severe illness and don’t have access to other FDA-authorized treatments.

This is the second COVID-19 therapy available in pill form after Pfizer’s pill was authorized in patients aged 12 and older on Wednesday.

Children and teenagers are not eligible for Merck’s pill due to fears that the medication could negatively impact bone and cartilage growth.

COVID-19 patients seeking the pills must obtain a doctor’s prescription first.

ABC News’ Sony Salzman

Dec 23, 5:44 am
Rep. Jan Schakowsky tests positive for COVID

Rep. Jan Schakowsky, D-Ill., has tested positive for COVID-19.

Schakowsky said her husband, Bob, had tested positive last week. After several negative tests, the lawmaker also tested positive on Tuesday night, she said on Twitter.

Both Schakowskys were vaccinated and received boosters. They’re now quarantining, she said.

“We got tested when we felt something was off, and now we can prevent exposure to our family and loved ones,” Schakowsky said. “I implore you to do the same before holiday gatherings this week and next. Get tested if you feel sick or have been around someone who tests positive.”

ABC News’s Ben Siegel

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WHO investigating mysterious illness in South Sudan that has killed nearly 100 people

WHO investigating mysterious illness in South Sudan that has killed nearly 100 people
WHO investigating mysterious illness in South Sudan that has killed nearly 100 people
Fabrice Coffrino/Getty Images

(NEW YORK) — The World Health Organization is investigating a mysterious illness in South Sudan that has killed dozens of people.

So far, 97 people have died of the unknown disease in Fangak, Jonglei State, in the northern part of the country.

Fangak County Commissioner Biel Boutros Biel told ABC News on Thursday that the latest fatality occurred in an elderly woman.

Deaths have mostly been reported among the elderly and children ages 1 to 14, according to a statement from South Sudan’s Ministry of Health.

The symptoms of the mysterious illness include cough, diarrhea, fever, headache, chest pain, joint pain, loss of appetite and body weakness, officials said.

Biel said the WHO team that traveled to Fangak has since left, but did not communicate their findings to local officials.

In a statement to ABC News, Collins Boakye-Agyemang, a spokesperson for WHO Africa, said the agency began investigating the outbreak in November but did not provide further details.

According to BBC News, because the area has recently been hit with heavy floods, the WHO tested samples from patients for cholera, which is typically contracted from infected water supplies.

However, the samples returned negative for the infectious bacterial disease, the outlet reported.

Sheila Baya, a lecturer in the College of Medicine at University of Juba in South Sudan, told BBC News that WHO scientists had to reach Fangak by helicopter due to the flooding to conduct testing.

Biel told ABC News that some nongovernmental organizations have delivered medical supplies to Fangak and are in the process of setting up mobile clinics to help treat people.

In a statement last month, international humanitarian group Médecins Sans Frontières (Doctors Without Borders) called the floods a “perfect storm” for disease outbreaks.

“People do not have enough water or options for water storage, and there is no garbage collection, while dead goats and dogs are left rotting in the drainage systems,” the statement read. “With the conditions further worsened by the influx of new arrivals [at camps], people are at higher risk of outbreaks and waterborne diseases such as acute watery diarrhea, cholera and malaria.”

ABC News’ Morgan Winsor contributed to this report.

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‘Major industrial accident’ at Exxon Mobil plant in Texas, sheriffs say

‘Major industrial accident’ at Exxon Mobil plant in Texas, sheriffs say
‘Major industrial accident’ at Exxon Mobil plant in Texas, sheriffs say
Bloomberg/Getty Images

(HOUSTON) — Exxon Mobil emergency response teams have extinguished a fire at the Baytown Refinery in Baytown, Texas.

“Our first priority is people in the community and in our facilities,” Exxon Mobil Baytown Area said in a statement on Twitter.

The company said there has been no adverse air quality monitoring impacts to the community.

“Around 1 a.m. on 12/23/2021, a fire occurred at our facility,” the company said on social media. “At this time, emergency vehicles and smoke may be noticeable to the community. We are coordinating with local officials, and working to resolve the issue as soon as possible.”

The causes of the incident have not yet been determined, according to Exxon Mobil. The company is working with authorities.

“All findings will be incorporated in our continuing effort to enhance our safety performance,” the company stated.

An information line has been set up for anyone affected by this incident at 1-800-241-9010.

Authorities in Texas said they were investigating a “major industrial accident” at the Exxon Mobil plant on Thursday morning.

“Some injuries have been reported. Please avoid the area,” the Harris County Sheriff’s Office said on Twitter.

Initial reports indicated some type of explosion occurred inside the plant, Sheriff Ed Gonzalez said. Four people were injured, with three taken from the scene by Lifeflight and one by ambulance, he said.

Videos posted on social media showed dense smoke rising from the facility.

“My mom lives right behind the plant and around 1 a.m. I heard a loud ‘boom’ and the house shaking,” Kendall Merritt, who lives nearby, told ABC News. “The sound was as if someone had slammed a door right in my ear.”

Exxon Mobil’s Baytown complex covers 3,400 acres about 25 miles east of Houston, according to the company’s website. Its local refinery can process about 584,000 barrels of crude oil each day.

Gonzalez said there wasn’t an order for nearby residents to evacuate or shelter-in-place.

Copyright © 2021, ABC Audio. All rights reserved.

FDA authorizes Merck pill for COVID-19 treatment

FDA authorizes Merck pill for COVID-19 treatment
FDA authorizes Merck pill for COVID-19 treatment
SOPA Images/Getty Images

The Food and Drug Administration on Thursday authorized Merck’s COVID-19 pill for certain adults.

The authorization is limited to adults who have a high risk of severe illness and for whom alternative FDA-authorized treatment options are not accessible or medically appropriate.

This is the second COVID-19 treatment in pill form after Pfizer’s pills were authorized Wednesday.

This is a developing story. Please check back for updates.

ABC News’ Sony Salzman contributed to this report.

Copyright © 2021, ABC Audio. All rights reserved.

Amid Ukraine invasion fears, Putin says West must give NATO guarantees

Amid Ukraine invasion fears, Putin says West must give NATO guarantees
Amid Ukraine invasion fears, Putin says West must give NATO guarantees
Mikhail Svetlov/Getty Images

(MOSCOW) — Amid fears Russia might invade Ukraine, Russia’s president Vladimir Putin has again repeated demands for guarantees from Western countries that NATO will not expand in eastern Europe, but also expressed hope that negotiations with the Biden administration in January could allow the two sides to “move forward.”

Putin offered the mixed messages on Thursday during his marathon end-of-year press conference in Moscow, making menacing accusations against Ukraine but also sounding more hopeful notes around the possibility for negotiation.

Western countries are alarmed that Russia may be preparing a renewed invasion into Ukraine this winter, amid a build up of tens of thousands of Russian troops on its border. Putin has demanded the U.S. and NATO give legal guarantees the alliance will not expand further and withdraw NATO troop deployments from eastern Europe.

The Biden administration has called those demands non-starters but has agreed to hold talks with Russia over its concerns. Putin on Thursday said those talks would take place in Geneva in January and said Russia had seen a “positive reaction” from the U.S. to its demands to negotiate.

“I hope that the first positive reaction and the announced possible start of work in the near future, in the first days of January, will allow us to move forward,” Putin said.

Putin said Russia was forced to confront NATO and Ukraine now to prevent the country potentially becoming a base for NATO missiles in the future.

“And so we put the question directly: there must be no movement of NATO further to the east,” he said. “The ball is in their court. They must answer us something.”

The U.S. and NATO countries have rejected Russia’s demands for a veto on NATO expansion, seeing them as an attempt by the Kremlin to have formal recognition for a sphere of influence over Ukraine. Analysts and Western officials have been trying to understand whether the Russian build up is a negotiating tactic or signals a real readiness to invade.

Putin’s comments on Thursday did little to move the needle. He said Russia did not want conflict but alleged there Ukraine might be preparing a military operation to re-take the Russian-controlled separatist regions in its east, saying Kyiv had tried to do it twice before in the past.

“They keep telling us: war, war, war,” Putin said. “There is an impression that, maybe, they are preparing for the third military operation and are warning us in advance: do not intervene, do not protect these people. But if you do intervene and protect them, there will be new sanctions. Perhaps, we should prepare for that.”

Analysts fear Russia might use the accusation of a Ukrainian attack as pretext to launch its own invasion. There are no signs Ukraine’s government is preparing such an assault, which would risk an overwhelming Russian response.

Russia last week published two draft treaties listing its demands from the U.S. and NATO. The proposals would limit NATO troops and military infrastructure to the countries where they were based before 1997, when the key eastern European members joined.

The Biden administration immediately rejected Russia’s demands limiting which countries can join NATO. But it has said it is ready to hold talks with Moscow about some of the other proposals, which are linked to arms control for example.

Putin spoke at length and angrily about NATO’s expansion eastward since the end of the Cold War, a grievance he has long held.

Asked by a journalist from Britain’s Sky News on Thursday if he would guarantee Russia will not invade Ukraine, Putin said it was Russia that needed guarantees from Western countries over NATO.

“What guarantees must we give you? You must give us guarantees. Right here and right now!” Putin said.

Copyright © 2021, ABC Audio. All rights reserved.

Five in custody after congresswoman robbed, carjacked at gunpoint

Five in custody after congresswoman robbed, carjacked at gunpoint
Five in custody after congresswoman robbed, carjacked at gunpoint
Michael Godek/Getty Images

(PHILADELPHIA) — Democratic Rep. Mary Gay Scanlon was carjacked at gunpoint in broad daylight Wednesday afternoon in south Philadelphia’s largest park following a business meeting.

The congresswoman was left unharmed, according to a statement provided to ABC News by her spokesperson, Lauren Cox.

“Wednesday afternoon, at around 2:45 p.m., Congresswoman Scanlon was carjacked at gunpoint in FDR Park following a meeting at that location. The Congresswoman was physically unharmed,” Cox said in a statement.

“She thanks the Philadelphia Police Department for their swift response, and appreciates the efforts of both the Sergeant at Arms in D.C. and her local police department for coordinating with Philly PD to ensure her continued safety,” the statement said.

Five suspects were taken into custody in Newark, Delaware, at about 9 p.m., when they were found inside Scanlon’s Acura MDX in a parking lot, Delaware State Police said. Their names were not released.

Scanlon, who was first elected to Congress in 2018, represents the 5th Congressional District in Pennsylvania, which includes parts of south Philadelphia.

Her spokesperson confirmed that Scanlon’s personal belongings, including her personal and government-issued phones and identification, were stolen by the perpetrators.

Philadelphia’s mayor, Jim Kenney, released a statement condemning the incident.

“I’m appalled to learn of this violent crime that was perpetrated against my friend and colleague, Congresswoman Mary Gay Scanlon. Everyone deserves to feel safe in our city, and sadly, as we know, that hasn’t always been the case this year. It’s disheartening, and quite frankly infuriating, that criminals feel emboldened to commit such a reckless crime in the middle of the day in what should be a place of tranquility and peace—one of Philadelphia’s beautiful parks,” he said in a statement.

“I’m thankful that she was not physically harmed during this incident, and my thoughts are with her during what I’m sure is a traumatic time. I’m also thankful that our police officers have been working hard to identify violent criminals and get them off our streets. PPD is actively investigating this incident. We simply cannot and will not tolerate any acts of violence. If anyone has any information about this incident—or any other crime—please call or text PPD’s anonymous tip line at 215-686-TIPS.”

The incident comes amid a violent year in Philadelphia, which saw a spike in both gunpoint robberies and auto thefts.

Philadelphia is seeing at least an 80% increase in carjackings in 2021, compared with the total number in 2020, Philadelphia Police have said.

Copyright © 2021, ABC Audio. All rights reserved.

COVID-19 live updates: Kamala Harris tests negative after exposure to staffer

COVID-19 live updates: Kamala Harris tests negative after exposure to staffer
COVID-19 live updates: Kamala Harris tests negative after exposure to staffer
Bloomberg/Getty Images

As the COVID-19 pandemic has swept the globe, more than 5.3 million people have died from the disease worldwide, including over 812,000 Americans, according to real-time data compiled by Johns Hopkins University’s Center for Systems Science and Engineering.

About 61.7% of the population in the United States is fully vaccinated against COVID-19, according to data from the Centers for Disease Control and Prevention.

Dec 23, 5:44 am
Rep. Jan Schakowsky tests positive for COVID

Rep. Jan Schakowsky, D-Ill., has tested positive for COVID-19.

Schakowsky said her husband, Bob, had tested positive last week. After several negative tests, the lawmaker also tested positive on Tuesday night, she said on Twitter.

Both Schakowskys were vaccinated and received boosters. They’re now quarantining, she said.

“We got tested when we felt something was off, and now we can prevent exposure to our family and loved ones,” Schakowsky said. “I implore you to do the same before holiday gatherings this week and next. Get tested if you feel sick or have been around someone who tests positive.”

ABC News’s Ben Siegel

Dec 22, 10:58 pm
Rep. Jim Clyburn, majority whip, tests positive for COVID

Rep. Jim Clyburn, D-S.C., the No. 3 Democrat in the House, said Wednesday night that he had tested positive for COVID. The 81-year-old lawmaker said he’s vaccinated and currently asymptomatic.

“America is in a new phase of this pandemic. No one is immune,” he wrote. “I urge anyone who has not done so to protect themselves by getting vaccinated and boosted.”

He said he has been in quarantine since Sunday awaiting results and missed his granddaughter’s wedding because of testing positive.

Clyburn played a crucial role in getting President Joe Biden elected last year when he endorsed him ahead of the South Carolina primary. Biden won the contest and carried the momentum through to the presidency.

The congressman appeared on stage with Biden on Dec. 17 at South Carolina State University’s graduation ceremony. Biden gave the commencement address while Clyburn received his diploma after graduating in 1961 but missing the ceremony. Both were wearing masks on stage and Clyburn said he tested negative ahead of the ceremony.

Clyburn was the eighth member of Congress — six representatives and two senators — to publicly disclose they tested positive for COVID this week. Later on Wednesday, Rep. Jan Schakowsky, D-Ill., became the ninth member to confirm a positive test.

ABC News’ Ben Siegel and Chris Howell

Dec 22, 7:54 pm
Critics Choice Awards postponed amid COVID-19 concerns

The Critics Choice Awards, initially scheduled to be held in person in Los Angeles next month, will be postponed, the association behind the film and television awards show announced Wednesday.

“After thoughtful consideration and candid conversations with our partners at The CW and TBS, we have collectively come to the conclusion that the prudent and responsible decision at this point is to postpone the 27th Annual Critics Choice Awards,” the Critics Choice Association said in a statement.

Organizers are working to find a new date during the upcoming awards season to hold the gala in person “with everyone’s safety and health remaining our top priority,” it said.

The Critics Choice Awards would have been the first major televised awards show of the season.

The announcement comes as the Los Angeles County health department reported 6,500 new COVID-19 cases on Wednesday, double the number from the day before and one of the steepest rises the county has seen during the pandemic.

The daily average case rate for the county has also more than doubled since last week, to 29 cases per 100,000 people. Test positivity has jumped to 4.5%, up from 1.9% last Thursday.

Health officials said new cases could reach over 20,000 by the end of the year due to the highly transmissible omicron variant.

ABC News’ Jason Nathanson and Nick Kerr

Dec 22, 7:36 pm
SCOTUS to decide fate of Biden vaccine mandates for large businesses, health care workers

The U.S. Supreme Court said Wednesday it will take up challenges to the Biden administration’s federal vaccine mandates for large businesses and health care workers, scheduling an expedited hearing for Jan. 7, 2022.

In a pair of orders accepting the cases, the high court put off immediate action on the mandates until after oral arguments next month.

Last week, a federal appeals court reinstated the emergency rule from the Labor Department’s Occupational Safety and Health Administration requiring private companies with 100 or more employees to mandate vaccinations or conduct weekly testing to ensure workplace safety. Multiple Republican state attorneys general, business organizations and other groups appealed the decision to the Supreme Court.

The Biden administration has since said masks among unvaccinated employees must be enforced starting Jan. 10 and proof of vaccination or testing compliance begins Feb. 9. The requirement remains in effect.

A separate rule by the Department of Health and Human Services requiring vaccinations of workers at facilities that receive funds to treat Medicare and Medicaid patients remains on hold. The Biden administration has asked the justices to reinstate it.

ABC News’ Devin Dwyer

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Omicron vs. treatments: What we know about how monoclonal antibodies work against new variant

Omicron vs. treatments: What we know about how monoclonal antibodies work against new variant
Omicron vs. treatments: What we know about how monoclonal antibodies work against new variant
Andriy Onufriyenko/Getty Images

With omicron’s explosive spread threatening to outpace current COVID-19 treatments, the race is on to find new options that will stand up to the variant.

The first oral antiviral treatment for the virus was authorized by the Food and Drug Administration Wednesday. Pfizer’s Paxlovid has proved effective against severe illness and death from COVID, and is expected to hold up against omicron. The news lent a glimmer of hope amid the latest surge, but supply is expected to remain limited for months as production ramps up.

Meanwhile, omicron’s high transmission rate is squeezing what was already a finite arsenal of COVID treatments. Of the currently authorized monoclonal antibody therapies — which have become a primary treatment for COVID to help keep patients out of the hospital — two of the main ones bought in bulk by the U.S. government have not been successful against the omicron variant.

The third option, one so far expected to remain effective against omicron, is in scant supply with federal health officials moving quickly to stockpile the drug, called sotrovimab, from Vir Biotechnology and GlaxoSmithKline.

Dr. Anthony Fauci, the nation’s top infectious disease expert, said the low supply of sotrovimab is “something we need to worry about” in a private call this week between the White House COVID response team and the nation’s governors obtained by ABC News.

The Biden administration is aiming to double its sotrovimab supply to more than 1 million treatment courses, making 300,000 doses available in January.

So far about 55,000 doses of sotrovimab have been allocated to states, with federal health officials promising shipments would arrive as soon as this week. But as the omicron variant rapidly advances — nearly three-quarters of all COVID cases are now omicron — health officials are bracing for a winter surge while potentially lacking ample defense from treatments that hold up against the new variant.

Marcus Plescia, chief medical officer of the Association of State and Territorial Health Officials, told ABC News that state leaders gearing up for omicron face a multi-pronged challenge: what was a “compelling tool” against the virus is now compromised, and what now works is still in limited supply. In addition, with hospital staffing shortages, there are looming concerns that manpower to administer the treatment will also be scarce.

“We can’t just hope it’s delta and give the older therapies,” he said. “Even if all of these monoclonal treatments still worked against all the variants, and we had an abundant supply, I’d worry we would get to a place where we just didn’t have the capacity to administer them.”

Evusheld, the pre-exposure monoclonal treatment from AstraZeneca, authorized earlier this month and expected to hold up against omicron is another treatment that could help out health officials. It can be given to a small subset of people for preventative use against the virus, such as those where the vaccines are not effective because of compromised immune systems.

“We’re in a very tight situation now where the virus is increasing faster than our access to the drugs that can treat it,” said Dr. Andrew Pavia, a fellow with the Infectious Diseases Society of America and a treatment guidelines panel member with the National Institutes of Health, told ABC News. “Once we have an adequate supply of sotrovimab, of Evusheld and of Paxlovid, we’ll have some pretty good tools for fighting omicron. But the virus is going to wash over the country before we have an adequate supply. So I’m worried January is going to be ugly.”

A spokeswoman for GSK told ABC News the company is “working with urgency and exploring options to expand our supply capacity in 2022,” including securing additional batches of the ingredients they’ll need to amp up sotrovimab manufacturing, and pushing up their next year supply plans to make more available sooner.

“The challenge is that the supplies [of sotrovimab] are still very limited,” Pavia said. “It’s going to require some very careful prioritization of who needs the drug the most.”

It’s not the first time new variants have hindered mainstay COVID treatments: for several months earlier this year federal health officials paused distribution of Eli Lilly’s monoclonal antibody treatment when it was shown to be ineffective against the gamma and beta variants. The Food and Drug Administration recommended health care providers use alternative authorized antibodies — like Regeneron and GSK — which had shown to hold up against the main variants of concern.

The government spent billions of dollars purchasing Regeneron and Eli Lilly’s monoclonal antibody cocktail to ensure there would be enough supply; GSK’s had not been as widely purchased and distributed. When delta became the dominant variant of concern and all three antibody therapies were effective against it, Eli Lilly’s authorization was renewed.

Health officials have increasingly turned to these therapies as breakthrough cases have ticked up and vaccination rates have not ticked up enough. These antibodies are synthetic versions of the body’s natural line of defense, meant for COVID patients early on in their infections and who are at high risk of getting even sicker in order to help keep them out of the hospital.

The currently authorized COVID-19 vaccines and their booster doses have still shown to be highly effective at preventing severe illness and death.

But as omicron gains steam, some hospitals, like Mount Sinai in New York, have already put a pause on using Regeneron and Eli Lilly’s treatments, given they are not effective against the variant. Some jurisdictions, however, are still clamoring for more supply amid the new crush of cases.

Miami-Dade County exhausted its supply of Regeneron’s treatment this week, shutting down its infusion site for a day while more was secured, a spokesperson for the mayor’s office told ABC News. They now have enough to last until Monday.

“What’s emerging is a realization that this virus is going to be with us for a while, and it’s going to be challenging,” Plescia said. “We’re just going to have to get through this as best we can and find new tools to meet that challenge.”

ABC News’ Eric M. Strauss and Cheyenne Haslett contributed to this report.

Copyright © 2021, ABC Audio. All rights reserved.

Private jet firms are soaring in popularity after big COVID-19 bailouts. Were they a ‘handout to the wealthy’?

Private jet firms are soaring in popularity after big COVID-19 bailouts. Were they a ‘handout to the wealthy’?
Private jet firms are soaring in popularity after big COVID-19 bailouts. Were they a ‘handout to the wealthy’?
Viaframe/Getty Images

Lingering health concerns about commercial air travel during the COVID-19 pandemic have fueled a boom in private jet travel, a trend that has led to fresh scrutiny of the industry’s taxpayer bailout — which some critics are calling a “handout to the wealthy.”

The multi-trillion-dollar federal rescue for businesses clobbered by the coronavirus included billions for airlines grounded by travel restrictions and safety concerns — and, according to one report, more than half a billion dollars for boutique aviation firms that deliver private jet travel to the super-rich.

“This was the rest of us paying to subsidize the luxury consumption of the very richest people in the country,” Dean Baker, cofounder of the progressive think tank Center for Economic and Policy Research, told ABC News.

During the summer of 2020, at the time of the first of three bailout programs set aside for aviation, industry experts said that private jet operators — just like the commercial airlines — would be confronting substantial drops in revenue. Executives at private aviation firms said they needed the government’s help to save the jobs of their employees.

But at the same time, many of those same executives said publicly that they saw signs of a coming boom, fueled by concerns about the pandemic.

That forecast is now coming to pass, making the once-niche industry an overnight sensation thanks to those who can afford to shell out up to $20,000 for a flight across the country. Industry analysts say private aviation has now exceeded pre-pandemic levels of popularity.

“Private aviation has bounced back faster than many industries, including the airlines,” said Travis Kuhn, vice president of market intelligence at the aviation consulting firm ARGUS International. “At this point in time, private air travel is about 15% larger today than it was two years ago — and it is almost all directly attributed to the pandemic.”

Furthermore, Kuhn said that after flocking to private aviation “for the perceived health advantages” of avoiding crowded airports and commercial planes, wealthy Americans “have since discovered the time-saving and productivity advantages” — a sign that the increased interest in private aviation may be here to stay.

In 2020, private aviation firms collected a total of up to $643 million in government funds from the Payroll Support Program, the Paycheck Protection Program, and the Economic Injury Disaster Loan program for small businesses, according to an analysis from Accountable.US, a government watchdog group. Subsequent iterations of the Payroll Support Program released even more funds to the private jet industry.

The overwhelming majority of funds delivered to private aviation firms came as grants that do not need to be repaid, as long as beneficiaries refrained from “conducting involuntary furloughs or terminations of employees” through September of 2021.

But some critics are calling on the firms that rebounded quickly to voluntarily return some of the money.

“These days, it seems many private jet companies are celebrating even greater fortune and opportunity regardless of government aid received,” said Kyle Herrig, the president of Accountable.US. “It’s time to pay taxpayers back.”

Among the biggest bailout recipients was OneSky Flight, an Ohio-based business aviation portfolio of brands like FlexJet, Sentient Jet, and PrivateFly, which received $81 million from a pot of money set aside in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help airlines. In a 2021 extension of the program, FlexJet, Sentient Jet and PrivateFly collected more than $50 million more in grants.

Executives at the OneSky companies have described the business as catering to a high-net-worth clientele, largely comprised of corporate clients and wealthy fliers. The companies’ social media feeds are peppered with endorsements from celebrity customers like astronaut Buzz Aldrin and golfer Bubba Watson, and references to their sponsorship of thoroughbred horse racing and an annual snow polo tournament in Aspen.

When OneSky reached out to the federal government for bailout dollars, company executives emphasized the needs of their pilots and flight controllers.

Directional Aviation, OneSky’s parent company, did not respond this week to a request for comment from ABC News.

Dan Hubbard, a spokesperson for the National Business Aviation Association, an industry trade group, told ABC News that “these businesses requested federal aid for the same reason countless other small businesses did: to keep employees on the job.”

“This crisis-moment investment worked — as it has in a host of industries — supporting employees and paving the way for their companies’ gradual recovery,” Hubbard said. “To have denied aviation businesses the same kind of lifeline offered to all other kinds of enterprises would have struck a blow to an entire segment of America’s aviation workforce.”

But critics have pushed back on that premise, arguing that private jet operators could have afforded to support their employees for a short stretch if they anticipated that business would rebound — which many industry executives said publicly at the time.

“It’s true that it does support jobs, but it would also support jobs if we agreed to pick up 25% of the tab for [Amazon CEO] Jeff Bezos’ personal servants,” Baker said of the bailouts. “There are much better ways to create jobs than subsidizing the very rich. If these people value having their private jets, then they will pay what it costs to keep the industry in business.”

Steve Ellis, vice president of Taxpayers for Common Sense, said the success of these firms so soon after accepting government support undermines the spirit of the programs.

“These programs are not designed, nor should they be, to make anyone better off, or even whole. They are a bridge to when our economy is on better footing,” said Ellis, who characterized the bailout as a “handout to the wealthy.”

“The private aviation industry benefited from increased interest during the pandemic … so they got taxpayer cash, and business soared,” he said.

Despite the criticism, some industry experts believe the stimulus of private aviation was warranted. Industry market experts have confirmed that private jet operators, just like the well-known commercial airlines, faced significant revenue drops at the height of the pandemic from mid-March through May of 2020.

Doug Gollan, the editor of Private Jet Card Comparisons, a blog covering the world of private aviation, said the success of the industry now is a reflection of how successful the CARES Act was in getting these businesses back on their feet.

“The money was meant to help companies navigate through the crisis,” Gollan said. “So, for the CARES Act, private aviation was the poster child of what a success story should look like.”

But questions about whether federal support should have more carefully targeted industries that would struggle returning to pre-pandemic levels stem in part from statements made by the private jet operators themselves, who’ve been publicly touting their success as the country emerges from the pandemic.

Kenn Ricci, the CEO of OneSky Flight’s parent company, recently told Bloomberg Media that business is now so good that he plans to expand his fleet by 40% over the next year.

And the recent success of private aviation has led the demand for new aircraft to drastically outpace supply, Bloomberg reported.

“It’s a once-in-a-lifetime grab,” Ricci said.

Lawmakers have previously taken aim at aviation firms that boasted of strong financial returns after accepting funds under the Payroll Support Program. In Oct. 2020, Rep. Jim Clyburn, the chairman of the House Select Subcommittee on the Coronavirus Pandemic, urged four cargo carriers to return hundreds of millions of dollars in government funds.

“It is troubling that Kalitta Air is receiving over $161 million in taxpayer funds intended to cover the wages and benefits of its workers, while simultaneously experiencing increased demand for its services,” Clyburn wrote to one of the companies. “Failing to return the funds to the Treasury would be inconsistent with Congress’ clear intent.”

When contacted this week by ABC News, the committee did not provide an update on the companies’ response. A committee spokesperson also declined to comment on whether the committee would be requesting that private aviation firms return pandemic relief money.

In the meantime, the juxtaposition of executives promoting their success after accepting government funds isn’t lost on some industry leaders. Patrick Gallagher, the president of NetJets, one of Ricci’s biggest competitors, has said that he is “hopeful, as a taxpayer, that some of those CARES Act funds get paid back.”

“We see our competitors touting their recent success and returning to pre-pandemic levels,” Gallagher said. “I’m glad that those funds were available to keep people employed, but many of these companies today are outdoing bolt-on acquisitions and spinning off new ventures.”

“Personally,” Gallagher said, “I am hopeful they are also paying back the tens of millions of dollars that they took to make payroll just a few months ago.”

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5 in custody after congresswoman robbed, carjacked at gunpoint

Five in custody after congresswoman robbed, carjacked at gunpoint
Five in custody after congresswoman robbed, carjacked at gunpoint
Michael Godek/Getty Images

Democratic Rep. Mary Gay Scanlon was carjacked at gunpoint in broad daylight Wednesday afternoon in south Philadelphia’s largest park following a business meeting.

The congresswoman was left unharmed, according to a statement provided to ABC News by her spokesperson, Lauren Cox.

“Wednesday afternoon, at around 2:45 p.m., Congresswoman Scanlon was carjacked at gunpoint in FDR Park following a meeting at that location. The Congresswoman was physically unharmed,” Cox said in a statement.

“She thanks the Philadelphia Police Department for their swift response, and appreciates the efforts of both the Sergeant at Arms in D.C. and her local police department for coordinating with Philly PD to ensure her continued safety,” the statement said.

Five suspects were taken into custody in Newark, Delaware, at about 9 p.m., when they were found inside Scanlon’s Acura MDX in a parking lot, Delaware State Police said. Their names were not released.

Scanlon, who was first elected to Congress in 2018, represents the 5th Congressional District in Pennsylvania, which includes parts of south Philadelphia.

Her spokesperson confirmed that Scanlon’s personal belongings, including her personal and government-issued phones and identification, were stolen by the perpetrators.

Philadelphia’s mayor, Jim Kenney, released a statement condemning the incident.

“I’m appalled to learn of this violent crime that was perpetrated against my friend and colleague, Congresswoman Mary Gay Scanlon. Everyone deserves to feel safe in our city, and sadly, as we know, that hasn’t always been the case this year. It’s disheartening, and quite frankly infuriating, that criminals feel emboldened to commit such a reckless crime in the middle of the day in what should be a place of tranquility and peace—one of Philadelphia’s beautiful parks,” he said in a statement.

“I’m thankful that she was not physically harmed during this incident, and my thoughts are with her during what I’m sure is a traumatic time. I’m also thankful that our police officers have been working hard to identify violent criminals and get them off our streets. PPD is actively investigating this incident. We simply cannot and will not tolerate any acts of violence. If anyone has any information about this incident—or any other crime—please call or text PPD’s anonymous tip line at 215-686-TIPS.”

The incident comes amid a violent year in Philadelphia, which saw a spike in both gunpoint robberies and auto thefts.

Philadelphia is seeing at least an 80% increase in carjackings in 2021, compared with the total number in 2020, Philadelphia Police have said.

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