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Re: Boeing Plans Deeper Cuts...Airlines Go Back to Congress for Money to Preserve Jobs; Some carriers joining unions to push lawmakers for six more months of fundingSider, Alison.Wall Street Journal (Online); New York, N.Y.Airlines are asking the government to again step in with funds to help them prevent tens of thousands of job losses. Airlines were barred from laying off or furloughing employees this summer as a condition of the $25 billion in aid they received under the broad economic stimulus package passed in March. Those restrictions will be lifted Oct. 1, and U.S. airlines have outlined furlough plans that could affect over 75,000 pilots, flight attendants, mechanics and other workers when that day comes. Now some carriers are joining their unions behind the scenes to push for another six months worth of funding that would allow them to avoid those cuts until March 2021 without further risk to their own fragile finances. American Airlines Group Inc. Chief Executive Doug Parker traveled to Washington this week to lobby lawmakers, company officials told employees. Southwest Airlines Co. CEO Gary Kelly said in a video message Friday that he has personally held talks with legislators, and a Southwest spokesman said the company is in discussions with several congressional offices. United Airlines Holdings Inc. Chief Executive Scott Kirby has also gotten involved in talks, a person familiar with the matter said. Discount airlines have been holding talks with lawmakers as well, including Senate Majority Leader Mitch McConnell (R., Ky.), according to a person familiar with the matter. Behind the push are hopes that air travel might be on a surer path by March . It can take months for carriers to hire and train pilots, so airlines would be better positioned to take advantage of improving demand if they can avoid deep staffing cuts . Funds for airline workers weren't included in the proposal Senate Republicans unveiled this week for the next coronavirus-aid package , but some people familiar with the discussions said senators have been receptive—one person estimated the extension has a 50-50 chance. Still, the stimulus bill faces bigger obstacles , including a divide within GOP ranks about how much more to spend to shore up the economy during the pandemic. Airline unions have been pushing since late June for Congress to reup the funding to grant aviation workers another six-month reprieve. In the House of Representatives, a bipartisan majority signed a letter this week saying they would support the proposal. Airlines were facing an existential crisis as passenger demand rapidly plummeted in March. Their finances have stabilized with government aid, cost cuts and billions of dollars in new debt. But what looked like the beginnings of a rebound earlier this summer flatlined as cases surged, triggering a wave of new travel restrictions and quarantine requirements. The International Air Transport Association pushed back its forecast for a recovery in global air traffic to prepandemic levels until 2024, a year later than it previously anticipated. Airlines ultimately may not have to let go as many people as they are currently preparing for. Several carriers are still hoping that many employees will opt to retire early or leave on their own or that unions will agree to cost-cutting concessions. But the goal of avoiding substantial cuts has become more elusive, executives say. "As I take a look at things, just the demand falloff—it's gonna be really hard to pull together enough leaves and early-outs and whatnot to offset the need to furlough," American President Robert Isom told airline employees this week, according to a recording reviewed by The Wall Street Journal. Delta Air Lines Inc. Chief Executive Ed Bastian said this week that 17,000 employees have agreed to depart. Southwest has said it doesn't plan any forced cuts this year but thousands are leaving on their own, and airlines including Alaska Airlines and JetBlue Airways Corp. have struck deals with pilots unions to prevent forced cuts for now. Still, Alaska said Friday it is aiming to reduce its workforce by 35% and will send required notices of potential furloughs to 4,200 other front-line workers. United told pilots this week that travel demand is likely to remain below half of 2019 levels until a vaccine is widely available. As a result, United's original plan to furlough about a third of its pilot workforce this year and next likely won't be enough absent additional federal aid, an executive told pilots this week. United has sent advance notices required under a federal law to 36,000 workers whose jobs will be at risk this fall. Many senior employees who are safe from cuts under union contracts are weighing whether it is time to retire. Newer employees most at risk have found themselves in limbo. "It's frustrating to be in that holding pattern," said one flight attendant. United also said this week that it will drop one of the feeder airlines it hires to fly 50-seat jets from smaller cities into its hubs, citing a need to streamline operations and cut capacity to match lower demand. That change throws into question the future for ExpressJet and its more than 3,000 employees. As recently as late February, ExpressJet was on a hiring spree, offering bonuses of as much as $40,000 for new captains, as it sought to keep up with massive growth in demand from United. Now the airline, which doesn't fly for any other airlines, said it is evaluating its options as it winds down its relationship with United over the next several months. "There is nothing I can say to make this news palatable, because it is not," First Officer Joe Mauro, chairman of the union that represents ExpressJet's pilots, wrote in a message to members. "For some, this will be the last airline position you hold." |
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