MOSCOW, Oct 1 — American Airlines and United Airlines will start furloughing more than 32,000 employees on Thursday when the federal coronavirus-related aid package expires since the talks for additional government support have failed.
Sputnik news agency reported that according to CNBC broadcaster, both airline companies, however, pledged to recall workers if a deal on additional government support is reached.
In March, the US Congress passed US$25 billion in federal payroll support and thus prohibited airlines that were seriously affected by the pandemic to cut jobs until October 1. Over the past several months, airline companies have been trying to urge lawmakers for another US$25 billion packages and this proposal has won bipartisan support, however, talks for a bigger COVID-19 aid package failed on Wednesday.
The broadcaster noted that the deal between the White House and lawmakers would have preserved jobs through the end of March 2021, despite weak travel demand.
The talks, however, are set to continue and the leadership of both airline companies expressed readiness to reverse the furloughs and recall workers if a positive result is reached, according to the broadcaster.
The global airline industry is among the worst affected by the coronavirus pandemic as most countries were forced to shut borders and ground flights to curb the contagion.
Sources: BERNAMA
