the largest US airline plans to lay off 19,000 employees
American Airlines said it will lay off or forcibly withdraw 19,000 employees from October 1, unless the aviation industry gets more help from Congress.
The world’s largest airline, which had 133,700 employees, says it will need to reduce staff numbers “at least” 40,000.
The company indicated that 12,500 agreed to leave the company with early retirement or purchase packages, and 11,000 others agreed to a voluntary leave for the month of October.
“Even with these sacrifices, nearly 19,000 of our team members will be sacked or forcibly separated from the company on October 1, unless there is an extension (of federal aid),” said the company’s CEO, Doug Parker and Chairman Robert Esom.
American Air Lines said dismissal notices were sent out on Tuesday to 17,500 employees.
Under the terms of CARES Act, which provided up to $ 50 billion in aid to the US airline industry, airlines could not lay off staff or forced furlough until October 1.
According to the company’s letter, “the only problem with the legislation is that when it was enacted in March (last), it was assumed that by September 30, the virus would be under control and the demand for air travel would return.”
The airline also announced earlier this week that it would suspend service in 15 smaller US markets in October as a cost-cutting move. Cutting off service to cities they have served is another measure that CARES banned before the same month.
The aviation industry and its unions are pushing for an extension of the aid, but is linked to a discussion of other economic aid packages being considered, including boosted unemployment benefits and aid to state and local governments.
(CNN )
