American Airlines might have to send 13,000 workers on furlough in the coming month.
American Airlines, a major airline in the U.S. on Wednesday confirmed they might send 13,000 employees on a leave of absence since the second round of federal payroll aid is expected to expire in the coming month.
According to Doug Parker, the American Airline’s CEO, “The vaccine is not being distributed as quickly as many of us believe. And upcoming restrictions on international travel that need clients to have a negative COVID-19 test result have lowered demand.” On the other side of the coin, United Airlines, a close rival of the former, last Friday sent similar layoff warnings to over 14,000 members of staff.
The latest $15 billion Congress approved for U.S carriers required airports to recall all the employees furloughed during fall and maintain their payroll to the 31st of March. Airline labor unions are now requesting $ 15 billion more in federal payroll support for the industry to stay afloat up to the 30th of September. American’s Parker and Ison were quoted saying, “We support our union leaders’ efforts to push for an extension, and we promise to lend our energy and time to support this effort any way we can.
According to the American Airlines security filings, the layoff notices are expected to go to 40 instructors, 100 dispatchers, 1205 in passenger support, 1420 in maintenance work, 1850 pilots, 3145 fleet service workers, and 4245 flight attendants. Employers are required to send furlough notices generally 60 days in advance. However, the notices are never an assurance that recipients will finally lose employment.
Fortunately, American Airlines is presenting early retirement packages for employees with over 10 years working for them which includes up to $ 150,000 in a retirement health reimbursement package with added travel benefits. The company is also rolling out furloughs for a year or two with partial pay. A point of note, however, is the fact that American Airlines is the only major airline to furlough pilots. Delta, United, and other carriers came into agreement with trade unions for reduced flying or pay in exchange for not cutting jobs completely.
The Allied Pilots Association, however, criticized American’s decision to avoid voluntary measures to spread out flying to limit job cuts.
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Photo Credit: American Airlines