American Airlines asks Federal help, plans to cut off 19,000 workers
Category: #world  By Pankaj Singh  Date: 2020-08-27
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American Airlines asks Federal help, plans to cut off 19,000 workers

After months of warning about forthcoming layoffs once their pandemic bailout expires, American Airlines Inc., is getting closer to making the job cuts. The airline has warned that it will send 19,000 employees off or furlough involuntarily as of 1 October, unless it receives more assistance from Congress.

With this announcement, it seems that the airline is seeking to put pressure on Trump Administration and Congress to strike a deal on the additional stimulus package. The world's largest airline, which hires 133,700 people, claims it would need to cut the number of workers by at least 40,000.

It said that 12,500 employees plan to leave the business on early retirement or early buying deals and 11,000 more workers have decided to mutual furloughs for October.

The letter sent to employees by U.S. CEO Doug Parker and President Robert Isom illustrated that even with these sacrifices, on October 1 around 19,000 of the team members will be intentionally furloughed or separated from the company unless the federal assistance is extended. The airline company said notifications of layoffs were provided to 17,500 workers on Tuesday.

The letter also took into account the pandemic and stated that the only problem with the legislation is that the virus was supposed to be controlled and air travel demand would have re-emerged by 30 September, once adopted in March.

Of reality, that's not the case. Throughout America, the firm expects to travel fewer than 50% of the airlines in the fourth quarter, based on existing market rates, and international long-distance carriers are down to just 25% from 2019.

In accordance with the CARES Act, the airlines were unable to lay off or involuntarily furlough employees for up to 50 billion dollars in aid to US airlines until 1 October.

The aviation sector and its unions are calling for a boost in funding but are linked to the negotiation of other economic relief programs, including expanded unemployment benefits and assistance to the state and local governments.

Source credit - https://edition.cnn.com/2020/08/25/business/american-airlines-job-cuts/index.html



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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