United and American Airlines have started a furlough plan that will affect 32,000 employees as federal aid is close to running out and more does not seem to be coming yet.
David Koenig reported the news for the AP:
American Airlines and United Airlines say they will begin to furlough 32,000 employees after lawmakers and the White House failed to agree on a broad pandemic relief package that includes more federal aid for airlines.
American Airlines CEO Doug Parker said that if Washington comes up with a deal with $25 billion for airlines “over the next few days,” the company will reverse 19,000 furloughs set to begin Thursday and recall the workers.
Tracy Rucinski and David Shepardson from Reuters wrote:
Tens of thousands of other employees at those airlines and others including Delta Air Lines and Southwest Airlines have accepted buyouts or leaves of absence aimed at reducing headcount as carriers battle a health crisis that has upended the global travel industry.
U.S. airlines have been pleading for another $25 billion in payroll support to protect jobs for a further six months once the current package, which banned furloughs, expires at midnight EDT.
Fox News’ Ken Martin reported:
Treasury Secretary Steven Mnuchin said Wednesday night that the administration wants to help hotels, airlines and schools. He said he was talking with House Speaker Nancy Pelosi but hinted that the White House doesn’t want to go above about $1.5 trillion — $700 million below the House Democrats’ figure.
“I don’t think we’re going to make significant progress” until Thursday, he said on Fox Business.