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Both companies and United Airlines have announced plans to recall about 32,000 employees, following the adoption by Congress of a $ 900 billion COVID-19 aid package, which includes an extension of the Wage Support Program.
As part of the new package, the airline industry will receive $ 15 billion for passenger air carriers and $ 1 billion for contractors, which will be used exclusively for salaries, wages and employee benefits. To be eligible, airlines must agree to avoid discounts or reduce payments and benefits by 31 March. Airlines are also required to withdraw employees who were involuntarily forced between 1 October and the date on which the airlines agree to the rules of the invoice.
The package is currently awaiting the signing of President Trump’s approval.
UNITED AIRCRAFT WILL “EXTRACT” EQUIPMENT MEMBERS SICK, OR POSSIBLY DISEASED FROM ABROAD, USING PASSENGER AIRCRAFT
United CEO Scott Kirby and President Brett Hart said Monday night in a note to employees that the airline “intends to provide temporary jobs” to more than 13,000 employees who were hired in October.
“As you know, involuntary roads have always been a last resort for us and we worked hard over the summer – by reducing costs, raising capital and partnering with our unions – to make the number of people affected in those in it was going to be as small as possible, “Kirby and Hart wrote.” Now those employees who are eligible for PSP expansion can temporarily return to United until March 2021. This is certainly good news for our economy, our industry. and the airline – but it’s particularly good news for those who have been without a salary and can’t wait to get it back. “
| ticker | Security | The last one | Change | Change% |
|---|---|---|---|---|
| UAL | UNIT AIRLINES HLDG. | 42.97 | -1.08 | -2.46% |
| AAL | AMERICAN AIRLINES GROUP INC. | 15.48 | -0.62 | -3.85% |
The American Airlines announcement came less than 24 hours later, with CEO Doug Parker and President Robert Isom writing in a note to employees on Tuesday that the airline will begin remembering nearly 19,000 employees in a few steps. Once officially approved, all team members will receive payment and benefits restored retroactively on December 1st.
“If we move quickly to the law, we should be able to get everyone a salary on Christmas Eve,” Parker said in a video message.
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The relief for the airline industry comes as the distribution of vaccines by Pfizer, BioNTech and Moderna to the public began after both were lit by Green Food by the Food and Drug Administration earlier this month.
| ticker | Security | The last one | Change | Change% |
|---|---|---|---|---|
| FE | PFIZER INC. | 36.74 | -0.64 | -1.71% |
| BNTX | BIONTECH SE | 100.56 | -5.90 | -5.54% |
| mRNA | MODERN INC. | 125.88 | -12.42 | -8.98% |
However, United airline executives have warned that customer demand is not expected to change much from now until the end of the first quarter of 2021, due to the fact that vaccination of the majority of the American public will take months on Monday.
“United has been realistic about our prospects during the crisis and we have tried to give you an honest assessment at every step,” Kirby and Hart said. “The truth is that we simply don’t see anything in the data that shows a huge difference in bookings over the next few months. That’s why we expect the recall to be temporary.”
The Transportation Security Administration reported that more than 954,000 Americans traveled on Monday, well below the 2.4 million passengers on the same day a year ago. According to the latest update from Johns Hopkins University, the United States has exceeded 18.1 million confirmed cases of coronavirus and more than 321,000 Americans have died from COVID-19.
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