💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

American Airlines, unions make new push to win government payroll assistance

Published 09/16/2020, 02:01 PM
Updated 09/16/2020, 02:40 PM
© Reuters. FILE PHOTO: People walk past an American Airlines logo at John F. Kennedy (JFK) airport in in New York
AAL
-

By David Shepardson and Tracy Rucinski

WASHINGTON/CHICAGO (Reuters) - American Airlines (O:AAL) Chief Executive Doug Parker and seven major airline unions on Wednesday made a new push to win additional government assistance to keep nearly 20,000 workers on the payroll past Oct. 1.

In a letter to congressional leaders, the White House and Treasury, Parker and the unions warned "nearly 20,000 American Airlines team members are facing furloughs in just two short weeks, and several markets in our domestic network are at risk of significant reductions in air service."

The letter implored the leaders "to find a way to work together to reach agreement on a COVID-19 relief bill that includes a clean extension" of payroll support.

White House press secretary Kayleigh McEnany did not offer details on what actions the administration might take to help airlines.

"The president has mentioned previously that he wanted to take a good look at airlines and help where he can. Of course, we need Congress in a lot of this," she said.

The letter added: "Our conversations with each of you suggest a deal is within reach, and there is no time to waste."

Last month, American said it planned to suspend flights to 15 smaller U.S. airports in October as travel demand remains low due to the coronavirus pandemic.

Congress has been weighing for weeks whether to grant U.S. airlines another $25 billion in payroll assistance that would keep tens of thousands of airline workers on the job for another six months and extend minimum service requirements.

American said it will cancel just over 700 flights in October to and from those 15 airports.

© Reuters. FILE PHOTO: People walk past an American Airlines logo at John F. Kennedy (JFK) airport in in New York

Major U.S. airlines that received portions of $25 billion in payroll assistance were required to maintain minimum flights through Sept. 30, but the government could opt to extend those requirements. American received $5.8 billion in payroll assistance.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.