The company said on Wednesday that American Airlines would soon send layoffs and bogus notices to 25,000 union employees as the company cut its workforce in October.
CEO Doug Parker and President Robert Isom outlined job cuts in a letter to employees at the Fort Worth-based airline on Wednesday, stating that the COVID-19 recession means that this decline will be less likely and the airline will be overstayed.
The letter stated that since the CARES Act was signed in March, we had a stated goal of avoiding furloughs, as we believed that the demand for air travel would increase steadily from 1 October. 1. “Unfortunately this has not happened.”
American also unveiled another program of procurement and extended leave that is more lenient than previous proposals, hopefully to leave workers on their own before issuing pink slips or fake notices.
The lay-off notice includes huge cuts to every group of workers in American. Some 9,950 notices will be sent to flight attendants, representing 37% of the airline’s in-cabin crew. Another 2,500 pilots will be dispatched, accounting for 18% of the people in the cockpit. About a quarter of all maintenance and fleet service workers can be eliminated, some 7,700 in all.
American has already cut back its management and support staff through involuntary and voluntary layoffs by about 5,000 employees.
Parker and Isom’s letter stated, “We know American will be smaller going forward and we have to shape it right to accommodate all aspects of our airline from that new reality.”
This cut could wipe out an entire generation of American Airlines employees. The Association of Professional Flight Attendants said on Wednesday that anyone would be hired after April 12, 2002, which would be affected by the deduction, although this could change if vacation or purchase was made.
Allied Pilots Association spokesman Dennis Tjere said most pilots, who fainted or got off the plane, would be waiting for a callback from the airline. According to the airline data project at the Massachusetts Institute of Technology, American pilots were paid an average of $ 238,000 in 2019.
“There is no possibility of any flight there, so they will be eager to return,” Tjer said. “But this is the plan that American has and it reflects the depth of how hard the virus has hit the entire industry.”
Airline leaders began warning union members last week that notices were coming under the Worker Adjustment and Retraining Notifications Act, and Parker was increasingly blunt about the possibility of a cut.
The notices are mandated by federal law to allow employees 60 to 90 days before mass layoffs.
The company hopes to send notice to union leaders in the next days. Unions representing workers will decide which are fictitious or closed based on seniority, job classification and where members are stationed.
American Airlines has approximately 130,000 employees, including its regional carrier, of which approximately 30,000 are at DFW International Airport or the company’s headquarters headquarters.
All major airlines are preparing to come to Cuttack. October 1, when federal incentive grants and loan expiration rules expire and carriers are free to lay off workers, issue furloughs and cut back on salaries and benefits.
American received a grant of about $ 4.1 billion and a loan of about $ 6 billion as part of the nearly $ 2 billion dollar act.
Despite recent travel spikes, airline executives are poised for a long, slow recovery. Delta CEO Ed Bastian said this week that future bookings had begun to weaken with a lift in COVID-19 cases.
The airline passenger numbers had slowly ticked since the worst point in mid-April. But airlines for the US, the aviation trade group, said this week that demand again began to weaken amidst uncertainty in the recovery of COVID-19.
“Our passenger revenues in June, while we believe the industry is better than others, were down more than 80% compared to June 2019,” the letter from the American leaders said. “And as infection rates rise and many states reestablish quarantine restrictions, demand for air travel is slowing down again.”
Less than a third of passengers are now flying compared to a year ago. And the business of transporting passengers requires a lot of workers and they run on thin profit margins.
Gary Kelly, CEO of Southwest Airlines, recently told employees at the Dallas-based airline that the number of passengers needed to triple by the end of the year to avoid layoffs.
Delta said Wednesday that it expects to charge $ 2.7 billion to $ 3.3 billion to cover the costs of early retirement and purchases for the 17,000 employees who have agreed to depart. It said that up to $ 600 million in cash payments would be received by pilots, flight attendants, ground workers and other employees in the July-September quarter.
American and Southwest Airlines will report second quarter results on July 23.
Unions have made other plans to try to fund jobs in the fall. This week, a proposal by airline unions to extend another stimulus bill was backed by lawmakers, including House Transportation Committee Chairman Peter DeFazio, D-Oregon. The proposal would delay any layoffs in airlines until March 31, 2021.
The letter stated, “This is a union-led initiative in our industry, but American supports any legislation that would protect our team’s jobs during these extraordinary times.”
The previous CARES Act gave $ 50 billion in loans and grants to airlines.