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Around 13,000 American Airlines employees are likely to receive furlough notices by Friday, due to the low travel demand caused by the ongoing coronavirus pandemic.
This was announced by their CEO, Doug Parker and President, Robert Isom in a memo on Wednesday, as the payroll support package will end on March 31.
Airline labor unions are now asking for an additional $15 billion federal aid for the industry to prevent the layoffs and support its employees until September 30.
American Airlines warns 13,000 employees of potential furloughs
Worker Adjustment and Retraining Notification notices will be issued to employees beginning Friday
According to Fox Business, American Airlines has issued a warning to approximately 13,000 employees that potential furloughs could be coming as travel demand remains suppressed due to the ongoing impact of the coronavirus pandemic.
According to the memo, the airline will begin issuing Worker Adjustment and Retraining Notification (WARN) notices on Friday. While WARN notices are generally required 60 days in advance by law, the notices do not guarantee that workers notified will lose their jobs.
American furloughed 19,000 workers after the first round of government payroll support expired on Oct. 1 but recalled them in December, following approval of an additional $15 billion from Congress. The new round of federal aid requires airlines to keep recalled employees on the payroll through March 31.
American warns 13,000 employees of furloughs as airlines prepare to lose federal aid next month
The latest round of payroll support expires March 31 and labor unions are seeking more government aid.
American Airlines on Wednesday said it will send furlough notices this week to about 13,000 employees as a second round of federal payroll aid is set to expire next month and travel demand remains in tatters, CNBC reports.
“The vaccine is not being distributed as quickly as any of us believed, and new restrictions on international travel that require customers to have a negative COVID-19 test have dampened demand,” American’s CEO Doug Parker and President Robert Isom wrote in a note to staff.
The furlough notices will go to 4,245 flight attendants, 3,145 fleet service workers, 1,850 pilots, 1,420 maintenance workers, 1,205 in passenger service, 100 dispatchers and 40 instructors, according to a American Airlines securities filing.