Airlines Make Final Plea for Aid to Avoid Job Losses
September 17 2020 - 10:34AM
Dow Jones News
By Alison Sider
Top executives at major airlines including American Airlines
Group Inc., Southwest Airlines Co., and United Airlines Holdings
Inc. will meet Thursday with White House chief of staff Mark
Meadows, people familiar with the matter said, as the companies
make a final push for more government aid.
Airlines agreed not to furlough or lay off employees through the
end of September in exchange for $25 billion as part of a broad
pandemic relief package last spring. They hoped the funds would see
them through the worst of the crisis, but six months later, travel
demand is still hovering at around 30% of last year's levels and
airlines expect recovery to be rocky and slow.
The restrictions of the first round of aid expire at the end of
the month. Unless they receive another infusion of cash, airlines
have said they would furlough tens of thousands of workers starting
Oct. 1.
President Trump and lawmakers in both parties have said they
support providing another $25 billion in aid to airlines so they
can keep paying all their workers through next March. But Congress
has been unable to come to terms on a broader relief package that
could include the airline funds, and time is running out.
"We remain hopeful for an outcome that spares thousands of our
colleagues and their families from what we regard as an avoidable
fate," American Chief Executive Doug Parker and the leaders of the
airline's unions wrote Wednesday in a joint letter to the White
House, the Treasury, and Congressional leaders. American has said
that some 19,000 of its employees will lose their jobs through
furloughs and layoffs Oct. 1 without additional aid.
Airline executives and industry lobbyists have grown more
pessimistic as Democrats and Republicans in Congress have remained
at an impasse over basic questions like the overall size of the
next relief package. Mr. Meadows has said previously that the
administration was looking into executive orders that could assist
the industry, but details have been murky.
More recently, there have been signs of movement. Mr. Trump, who
has largely remained on the sidelines during the latest
discussions, said in a tweet Wednesday that Republicans should seek
a more expensive aid package -- something that could bring the two
sides closer to an agreement.
Airlines and labor unions are continuing to plan for the
possibility that no further aid is coming.
Southwest Airlines has said enough employees agreed to depart on
their own that it won't need to furlough any this year. Delta Air
Lines Inc. said this week that it had been able to save enough
through voluntary departures, reductions in workers' hours and
other measures that it won't cut any flight attendants, mechanics,
or other front-line workers, with the exception of pilots.
Currently the airline is planning to furlough over 1,900 pilots,
though the company and the union are still discussing measures that
could mitigate that figure.
United Airlines pilots are voting on whether to accept
reductions in their work schedules, which translates into lower
pay, in exchange for a guarantee that all their jobs would be safe
until at least June. Union leaders endorsed the proposal Wednesday
and members will vote at the end of this month, just days before
the first swath of furloughs is due to go into effect.
"Hundreds of thousands of airline workers need the CARES Act
extension, but with pilot furloughs just weeks away, we can't
wait," Capt. Todd Insler, chairman of United's pilots union, said
in a statement.
Write to Alison Sider at alison.sider@wsj.com
(END) Dow Jones Newswires
September 17, 2020 10:19 ET (14:19 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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