Here Is Why Airlines Are Getting Ready for Huge Job Cuts...
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August 29, 2020 - by Josh Barro for nymag.com
American Airlines started the year with about 140,000 employees. It's telling workers and investors to expect that to drop to 100,000 this fall if the federal government does not extend the extraordinary financial aid to airlines that is set to expire on September 30.
As part of the CARES Act, Congress made $25 billion in grants available to passenger airlines so long as they agreed not to involuntarily lay off or furlough any employees or drop service to any domestic destinations through September 30.
This provision was strongly supported not just by airline executives and investors but also by airline employee unions, which expected a wave of airline bankruptcies and resulting revocations of union contracts if the airlines weren't rescued. The hope at the time was that the aid would bridge the airline industry until it reached a new normal.
Obviously, the new normal has not yet arrived: Air travel volumes are...
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