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Due to the Pandemic, American Airlines and United Airlines Seek U.S. Government Help to Avoid Laying Off 30,000 Employees
American Airlines announced that it will start laying off 19,000 workers beginning this Thursday (01), while United stated that it will cut approximately 13,000 jobs. The decision comes after the airlines and the U.S. government failed to reach a consensus to secure government assistance for the aviation sector, which is in crisis due to the Covid-19 pandemic.
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According to American Airlines CEO Doug Parker, in a letter addressed to employees, there may be rehire opportunities if Republican and Democratic leaders reach an agreement in Washington in the coming days.
The aviation sector remains shaken by the crisis caused by the Covid-19 pandemic and seems far from returning to its previous level. According to official data presented by G1, the number of passengers passing through security checkpoints at U.S. airports has decreased by 60% to 70% compared to the same period last year.
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On Wednesday (30), White House Chief of Staff Mark Meadows stated that the U.S. government committed to including an extension of US$ 20 billion in assistance for the aviation sector in a new stimulus proposal for House Democrats amounting to more than US$ 1.5 trillion.
To preserve jobs for a longer period, U.S. airlines had requested another US$ 25 billion in assistance for payroll.
The total value of the latest proposal from the White House has not been disclosed, but according to the Chief of Staff, it is expected to exceed the US$ 1.5 trillion mark previously presented.
