American Airlines says it needs to shed 25,000 jobs by Oct. 1
By Kyle Arnold, The Dallas Morning News 1 hr ago
http://a.msn.com/03/en-us/BB16MR1y?ocid=sf
World Leaders Push Vaccine Equity; U.S. Cases Rise: Virus Update
American Airlines says it needs to shed 25,000 jobs by Oct. 1
American Airlines will send layoff and furlough notices soon for 25,000 union employees as the carrier plans to significantly cut back on its workforce in October, the company said Wednesday.
© Smiley N. Pool/The Dallas Morning News/The Dallas Morning News/TNS An American Airlines agent works behind a plexiglass barrier at a check in counter at Dallas Fort Worth (DFW) International Airport Terminal A on Tuesday, June 30, 2020, in Dallas.
CEO Doug Parker and President Robert Isom outlined the job cuts in a letter sent Wednesday to employees at the Fort Worth-based airline, saying the COVID-19 downturn means there will likely be less flying this fall and the airline will be overstaffed.
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“From the time the CARES Act was signed in March, we had a stated goal of avoiding furloughs because we believed demand for air travel would steadily rebound by Oct. 1 as the impact of COVID-19 dissipated,” the letter said. “That unfortunately has not been the case.”
American also unveiled another program of buyouts and extended leave that is more generous than previous offers, hoping to get workers to leave on their own accord before issuing pink slips or furlough notices.
The layoff/furlough notices include massive cuts across every group of workers at American. Some 9,950 notices will be sent to flight attendants, about 37% of the workgroup. Another 2,500 will be sent to pilots, about 18% of all those workers. About a quarter of all maintenance and fleet service workers could be eliminated, about 7,700 in all.
American has already cut back its management and support staff by about 5,000 workers through a mix of involuntary and voluntary layoffs.
“We know American will be smaller going forward and we must right-size all aspects of our airline to adjust to that new reality,” said the letter from Parker and Isom.
The airline’s leaders began warning union members last week that notices under the Worker Adjustment and Retraining Notification Act were coming and Parker has been increasingly blunt about the possibility of cuts.
The notices are mandated by federal law to let employees know 60 to 90 days ahead of mass layoffs.
The company expects to send the notices to union leaders in the following days. The unions representing workers will then decide who gets furloughed or laid off based on seniority, job classification and where members are stationed.
American Airlines has about 130,000 employees including its regional carriers, with about 30,000 of those workers at DFW International Airport or the company’s nearby headquarters campus.
All major airlines are preparing for cutbacks to come Oct. 1, when rules from federal stimulus grants and loans expire and carriers are free to lay off workers, issue furloughs and cut back on salaries and benefits.
American took about $4.1 billion in grants and nearly $6 billion in loans as part of the $2 trillion CARES Act.
Despite a recent uptick in travel, airline executives are bracing for a long, slow recovery. Delta CEO Ed Bastian said this week that future bookings were starting to weaken with the uptick in COVID-19 cases.
Airline passenger numbers had slowly been ticking up since the worst point in mid-April. But aviation trade group Airlines for America said this week that demand was starting to weaken again amid uncertainty in the COVID-19 recovery.
Less than one-third the number of passengers are flying now compared to a year ago. And the business of delivering passengers requires a lot of workers and runs at thin profit margins.
Southwest Airlines CEO Gary Kelly recently told employees of the Dallas-based airline that the number of passengers needs to triple by the end of the year to avoid layoffs.
Delta on Tuesday announced a $7 billion pre-tax loss for the second quarter and other airlines are expected to record similar losses next week. American and Southwest Airlines will report second-quarter results on July 23.
Unions are making other plans to try to fund jobs into the fall. This week a proposal by airline unions to extend another stimulus bill for airlines found the support from lawmakers, including House Transportation Committee Chairman Peter DeFazio, D-Oregon. The proposal would delay any layoffs at airlines through March 31, 2021.
“This is a union-led initiative across our industry, but American is supportive of any legislation that would protect our team’s jobs during these extraordinary times,” the letter said.
The previous CARES Act bill gave $50 billion in loans and grants to airlines.
By Kyle Arnold, The Dallas Morning News 1 hr ago
http://a.msn.com/03/en-us/BB16MR1y?ocid=sf
World Leaders Push Vaccine Equity; U.S. Cases Rise: Virus Update
American Airlines says it needs to shed 25,000 jobs by Oct. 1
American Airlines will send layoff and furlough notices soon for 25,000 union employees as the carrier plans to significantly cut back on its workforce in October, the company said Wednesday.
© Smiley N. Pool/The Dallas Morning News/The Dallas Morning News/TNS An American Airlines agent works behind a plexiglass barrier at a check in counter at Dallas Fort Worth (DFW) International Airport Terminal A on Tuesday, June 30, 2020, in Dallas.
CEO Doug Parker and President Robert Isom outlined the job cuts in a letter sent Wednesday to employees at the Fort Worth-based airline, saying the COVID-19 downturn means there will likely be less flying this fall and the airline will be overstaffed.
Infants' and Toddlers' Mountain Bound Reversible Pants Multi Color 12-18 m | L.L.Bean
AdL.L.Bean
“From the time the CARES Act was signed in March, we had a stated goal of avoiding furloughs because we believed demand for air travel would steadily rebound by Oct. 1 as the impact of COVID-19 dissipated,” the letter said. “That unfortunately has not been the case.”
American also unveiled another program of buyouts and extended leave that is more generous than previous offers, hoping to get workers to leave on their own accord before issuing pink slips or furlough notices.
The layoff/furlough notices include massive cuts across every group of workers at American. Some 9,950 notices will be sent to flight attendants, about 37% of the workgroup. Another 2,500 will be sent to pilots, about 18% of all those workers. About a quarter of all maintenance and fleet service workers could be eliminated, about 7,700 in all.
American has already cut back its management and support staff by about 5,000 workers through a mix of involuntary and voluntary layoffs.
“We know American will be smaller going forward and we must right-size all aspects of our airline to adjust to that new reality,” said the letter from Parker and Isom.
The airline’s leaders began warning union members last week that notices under the Worker Adjustment and Retraining Notification Act were coming and Parker has been increasingly blunt about the possibility of cuts.
The notices are mandated by federal law to let employees know 60 to 90 days ahead of mass layoffs.
The company expects to send the notices to union leaders in the following days. The unions representing workers will then decide who gets furloughed or laid off based on seniority, job classification and where members are stationed.
American Airlines has about 130,000 employees including its regional carriers, with about 30,000 of those workers at DFW International Airport or the company’s nearby headquarters campus.
All major airlines are preparing for cutbacks to come Oct. 1, when rules from federal stimulus grants and loans expire and carriers are free to lay off workers, issue furloughs and cut back on salaries and benefits.
American took about $4.1 billion in grants and nearly $6 billion in loans as part of the $2 trillion CARES Act.
Despite a recent uptick in travel, airline executives are bracing for a long, slow recovery. Delta CEO Ed Bastian said this week that future bookings were starting to weaken with the uptick in COVID-19 cases.
Airline passenger numbers had slowly been ticking up since the worst point in mid-April. But aviation trade group Airlines for America said this week that demand was starting to weaken again amid uncertainty in the COVID-19 recovery.
Less than one-third the number of passengers are flying now compared to a year ago. And the business of delivering passengers requires a lot of workers and runs at thin profit margins.
Southwest Airlines CEO Gary Kelly recently told employees of the Dallas-based airline that the number of passengers needs to triple by the end of the year to avoid layoffs.
Delta on Tuesday announced a $7 billion pre-tax loss for the second quarter and other airlines are expected to record similar losses next week. American and Southwest Airlines will report second-quarter results on July 23.
Unions are making other plans to try to fund jobs into the fall. This week a proposal by airline unions to extend another stimulus bill for airlines found the support from lawmakers, including House Transportation Committee Chairman Peter DeFazio, D-Oregon. The proposal would delay any layoffs at airlines through March 31, 2021.
“This is a union-led initiative across our industry, but American is supportive of any legislation that would protect our team’s jobs during these extraordinary times,” the letter said.
The previous CARES Act bill gave $50 billion in loans and grants to airlines.
