American Airlines to Apply for Government Aid, Will Offer Staff Partially Paid Leave

By Kurt Stolz on 30 March 2020
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American Airlines said Monday that it plans to apply for part of the $50 billion in government aid that U.S. airlines will receive from the government out of its $2 trillion economic stimulus package and offer employees partial pay to entice them to take furloughs from between three and 12 months.

Like other airlines, the world’s largest carrier has seen demand plummet in the past month.

“We intend to apply for these funds and are confident that, along with our relatively high available cash position, they will allow us to fly through even the worst of potential future scenarios,” said American’s CEO, Doug Parker, and the airline’s president, Robert Isom, said in a memorandum to employees.

The $50 billion in aid is comprised of $25 billion in grants for passenger airlines in exchange for which they will not furlough or cut the pay rates of their employees through September 30. The other $25 billion is in loans.

American, which said it expects to receive about $12 billion, said it will offer employees 25% of their pay, not including overtime, as well as paid health benefits and ongoing travel benefits.

(Photo: Accura Media Group)

Accura News

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