The Covid19 pandemic has had hard impact on the airline industry and with congress not able to come to an agreement on the a pandemic relief package to offer federal aide to airline companies the workers are due to suffer. Layoffs will begin Thursday, unless some agreement is reached. American Airlines C.E.O Doug Parker said if Washington could come up with $25 Billion dollars it would reverse layoffs for about 19,000 workers. The Airline industry has made appeals to congress and the Trump administration, but there is has been no agreement met thus far.

The democrats did propose a bill of $2.2 trillion dollars that included the airline industry, but the republicans do not want to go over $1.5 trillion in the relief package. It seems there is going to be more negotiations, that may in the end leave the airline workers without work. The airline companies and their unions are asking for tax payer funds to pay workers for 6 months until at least March.

It is noted that the airline industry was given $25 billion mostly in grants in March for payroll and another $25 billion in loans they could use for other reasons. They could not layoff any workers because of a federal prohibition of layoffs which will expire Thursday as layoffs begin. The house and senate of both parties seem willing to workout another deal and may have something within the next few days.

Statista reports that the airline industry is set to lose $314 billion dollars in revenue and flights are down over 46% worldwide this year.

Leave a Reply

Your email address will not be published. Required fields are marked *