You are here: Home » International » News » Companies
Business Standard

American, United Airlines to lay off 32,000 as US aid talks drag on

The job cuts ramp up the pressure on Mnuchin and House Speaker Nancy Pelosi as they haggle over an economic relief plan, with Democrats calling for $2.2 trillion

Topics
American Airlines | United Airlines | US economy

Mary Schlangenstein & Justin Bachman | Bloomberg  |  New York 

United Airlines
Both airlines vowed to reverse the cuts if the government agrees to provide additional aid in the next few days

Group and Holdings will start laying off thousands of employees as scheduled, spurning Treasury Secretary Steven Mnuchin’s appeal for a delay as he negotiates with Congress over an economic relief plan that includes payroll support for US carriers. Both airlines vowed to reverse the cuts if the government agrees to provide additional aid in the next few days, according to memos to workers issued late Wednesday by the carriers. The furloughs total 19,000 at American and about 13,000 at United. The job cuts ramp up the pressure on Mnuchin and House Speaker Nancy Pelosi as they haggle over an economic relief plan, with Democrats calling for $2.2 trillion and the White House pushing for about $1.6 trillion.

White House Chief of Staff Mark Meadows said late Wednesday that the most recent proposal includes $20 billion for airlines as the industry contends with an unprecedented collapse in travel demand caused by the pandemic. “I am extremely sorry we have reached this outcome,” Chief Executive Officer Doug Parker said in a letter to employees as he announced the layoffs. “It is not what you all deserve.” American climbed 1.9 per cent to $12.52 ahead of regular trading in New York, while United advanced 1.8 per cent to $35.38.

AirAsia to close down its Japan ops due to virus AirAsia Group is closing down its operations in Japan as it grapples with virus-related restrictions on global travel, Nikkei reported, citing an unidentified person close to the low-cost airline. The Malaysian group’s directors met Monday and decided to wind up the Japanese venture, Nikkei said.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, October 01 2020. 22:43 IST
RECOMMENDED FOR YOU
.