Airlines start furloughing tens of thousands of workers
The day thousands of airline workers were dreading has come to pass, without a last-minute lifeline.
US airlines started furloughing tens of thousands of employees after no deal was reached on Capitol Hill.
American Airlines and United Airlines are furloughing a combined 32,000 positions but they could reverse these if an agreement is reached.
Delta, JetBlue and Southwest have said they don’t expect to make any involuntary furloughs but cuts at other airlines could take the tally to nearly 40,000.
The federal CARES Act funding ran out at the end of September.
House Democrats managed to pass a bill but is far from a done deal.
"The White House and House speaker Nancy Pelosi are continuing to negotiate on a bipartisan Covid-19 relief package that would include an extension of the Payroll Support Program (PSP), and it is possible they could reach an agreement in the coming days," American Airlines CEO Doug Parker told employees in a memo.
"There are also efforts in both the Senate and the House of Representatives to pass a standalone PSP extension if the broader relief package does not proceed."
United Airlines plans to furlough 6,900 flight attendants, 2,200 mechanics and 1,400 management and other white collar staff.
Hawaiian, Allegiant and Alaska Airlines each began furloughing several hundred employees
The new proposal includes $20 billion for US airlines to extend payroll support for six months and has bipartisan support.
It could still get ratified in the coming days, although news this morning that President Trump and the First Lady have tested positive for Covid-19 adds to the uncertainty.
The White House doctor claims the President will carry out duties ‘without disruption’ while isolating.
Written by Ray Montgomery, US Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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