American Airways plans to use for coronavirus support, presents partial pay for worker depart
American Airways jets sit idly at their gates Wednesday, March 25, 2020, at Sky Harbor Worldwide Airport in Phoenix.
Matt York | AP
American Airways on Monday stated it can apply for presidency support to melt the blow from a report drop in journey demand. The provider can be providing partial pay to entice staff off its payroll.
The Fort Price-based airline stated it expects about $12 billion of the $50 billion put aside for airways in a sweeping coronavirus aid invoice Congress handed final week. The help consists of $25 billion in grants for passenger airways in trade for not furloughing or slicing the pay charges of their staff by way of Sept. 30. The opposite half is in loans.
American’s assertion that it’ll apply for the funding is the clearest but from airways on the coronavirus support as executives parse by way of the small print. The rescue package deal got here with some strings hooked up to it, together with fairness stakes for the federal authorities and necessities for carriers to maintain paying staff and preserve sure air routes.
“We intend to use for these funds and are assured that, together with our comparatively excessive accessible money place, they’ll enable us to fly by way of even the worst of potential future eventualities,” American’s CEO Doug Parker and the airline’s president, Robert Isom, stated in a notice to staff.
American can be making voluntary leaves of absence and early retirements partially paid, an try to get extra staff to enroll. American and different carriers had been providing voluntary unpaid depart to attempt to decrease prices.
Mainline American staff, aside from pilots, might obtain 25% of their pay for leaves of as much as 12 months. They’d proceed to obtain medical advantages. Workers who’ve been with American for 10 years can obtain half of their pay for 12 months.
Different airways are additionally providing voluntary leaves of absence to staff. Delta’s CEO Ed Bastian on Friday stated 21,000 Delta staff have volunteered for unpaid depart of varied lengths, practically 1 / 4 of the full-time-equivalent staff the airline had on the finish of the yr.
“We might use extra volunteers,” Bastian stated in a memo to staff.