American, United Dealing With Furloughs Due to Drop in Demand

As carriers across the United States continue to deal with a drop in demand caused by the ongoing coronavirus outbreak, American and United Airlines are working on furlough plans for their employees.

According to Reuters.com, American announced it had sent out 25,000 notices of potential furloughs to frontline workers as part of the Worker Adjustment and Retraining Notification Act, which requires companies to provide 60 days’ notice before layoffs.

The warnings were sent to 2,500 pilots, nearly 10,000 flight attendants and 3,200 mechanics, a decision the airline said was due to overstaffing expected in October when the U.S. government payroll assistance expires.

American expects to be overstaffed by about 20,000 in the fall, but the company is developing enhanced leave and early-departure programs to reduce the number of employees furloughed.

As for United, the carrier announced Thursday it had reached an agreement with its pilots’ union on two different packages aimed at reducing involuntary furloughs in October so the employees will be ready when air travel demand does rebound.

The agreement between United and the Air Line Pilots Association International (ALPA) includes an early retirement deal for pilots 62 and older, as well as a slew of different options for pilots to reduce their hours or take a leave of absence voluntarily.

Pilots who volunteer for the program would potentially receive health benefits as long as they keep up their training, which would also be covered by United. ALPA Chairman Todd Insler said the agreement had “groundbreaking provisions that provide the option (for pilots) to remain qualified, allowing a faster recall once passenger demand returns.”

Earlier this week, TravelPulse’s Patrick Clarke examined how airlines have responded to the coronavirus outbreak.

This post was published by our news partner: TravelPulse.com | Article Source