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Washington CEO Doug Parker said American Airlines would go ahead with plans to lay off 19,000 employees on Thursday after negotiations for a national coronavirus assistance package in Washington failed, but the airline has been prepared for it.
The $ 25 billion terms in federal payroll support were passed by Congress in March for the ailing area, which prohibits airlines from cutting jobs until October. 1. Aid was meant to help airlines cope with a sharp drop in bookings, until a significant improvement in demand did not materialize.
Airlines have been making another proposal of $ 25 billion to MPs for the past several months, a proposal that garnered bipartisan support. However, talks for a comprehensive coronavirus package will include another round of stranded airline aid on Wednesday, opening the door to more than 30,000 job cuts, with their Lion stake in American and United Airlines starting on Thursday .
While House Speaker Nancy Pelosi and Treasury Secretary Steven Menuchin failed to reach an agreement on Wednesday, negotiations are set to continue.
Parker said in an employee note that he spoke with Mnuchin late Wednesday and told him that if a deal was to come from further negotiations, the American would “reverse” Farlow and call back any worker. It was not immediately clear how long this proposal would last.
“I am very sorry that we have reached this conclusion,” Parker wrote. “It is not worth all of you. It is a privilege to advocate on behalf of hardworking aviation professionals in the US and throughout the industry, and I assure you that we will continue to do so in the coming days.”