Airlines, Travel Groups Warn Of More Job Cuts As COVID Aid Talks Stall

American Airlines ticket representative Henry Gemdron, left, deals with a consumer at Miami International Airport on Sept. 30. If Congress and the White House stop working to reach agreement on coronavirus relief quickly, travel market groups warn of huge job losses.

Lynne Sladky/AP

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Lynne Sladky/AP

American Airlines ticket representative Henry Gemdron, left, deals with a consumer at Miami International Airport on Sept. 30. Travel industry groups alert of huge job losses if Congress and the White House fail to reach contract on coronavirus relief quickly.

Lynne Sladky/AP

It called on political leaders “to fix any procedural issues and continue as rapidly as possible” to maintain the program.
Airline companies and travel-related organizations are among the markets hardest struck by the Covid-19 pandemic. Flight is down 70 percent given that the pandemic started and hotel occupancy rates are down dramatically, too. Stress and anxiety amongst workers in the travel, airline and transport industries is high amidst the growing unpredictability over whether President Trump and Congress can concern a contract on relief for the sector.
In a barrage of texts, Trump both torpedoed talks focused on reaching a bipartisan arrangement on a broad coronavirus relief plan, but then reanimated hope for a standalone bill to help the airline companies.
” The House & & Senate must IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support,” the president tweeted Tuesday night, hours after he purchased his Treasury Secretary Steve Mnuchin and other representatives to stop negotiating with Democrats on another round of coronavirus relief up until after the election.
The president also contacted Congress to authorize an additional $135 billion for the Paycheck Protection Program to help small businesses, and authorize direct payments of $1,200 to many Americans.

American Airlines has started furloughing about 19,000 employees and United is furloughing more than 13,000. Alaska, Allegiant, Hawaiian and Spirit have actually also furloughed personnel since Oct. 1 and local airline companies, including Envoy, GoJet and PSA have cut some staff, too. Delta might begin furloughing pilots in November, and Southwest indicates it may have to furlough employees starting in January.

He stated Mnuchin asked about a standalone airline companies expense and Pelosi “advised him that Republicans blocked that expense on Friday & & asked him to examine” a $500 million facilities bill that passed the House over the summer.
On Friday, Democrats tried to pass a bill rapidly, by unanimous authorization, which was sponsored by House Transportation Committee Chairman Peter DeFazio, a Democrat from Oregon, and would supply $30 billion in help to airline companies. However it was blocked by Republicans after Democrats made a variety of changes Republicans challenged.
A comparable bill sponsored by Republicans in the Senate was also blocked by three Senate GOP members.
The layoffs and furloughs of airline company employees started after the expiration of direct payroll support authorized by Congress in the CARES act back in March.

” As leaders representing airline company labor unions, U.S. airlines, and trade associations representing the travel market, we are frustrated that an agreement might not be reached to offer support to individuals struggling with the effect of the pandemic,” the letter stated.

With about 40,000 employees furloughed in recent days, airline companies and their employee unions are pleading with Congress and the White House to pass an extension of federal payroll support for the market.
The labor and industry groups sent out Congressional leaders a letter on Wednesday urging them to pass legislation that would supply an additional $25 billion in direct payroll grants to airline companies, enabling them to keep paying employees through next March.
The letter noted that bipartisan bulks in Congress say they support the airline company financing and it expressed alarm that negotiations over relief for the having a hard time industry were suspended.

Airline companies and travel-related companies are amongst the markets hardest hit by the Covid-19 pandemic. Air travel is down 70 percent given that the pandemic started and hotel tenancy rates are down dramatically, too. Anxiety among employees in the travel, transportation and airline industries is high amid the growing unpredictability over whether President Trump and Congress can come to a contract on relief for the sector.
American Airlines has begun furloughing about 19,000 workers and United is furloughing more than 13,000. Alaska, Allegiant, Hawaiian and Spirit have actually also furloughed staff since Oct. 1 and regional airline companies, consisting of Envoy, GoJet and PSA have cut some staff, too.

Pelosi and Mnuchin talked briefly Wednesday morning about the possibility of passing $25 billion in payroll support for the airlines, according to a tweet by Pelosi spokesperson Drew Hammill.

Numerous airline companies have promised to remember those employees if a new contract on airline help can be reached quickly.
Nick Calio, president of the industry group, Airlines for America, stated in a statement late Tuesday that more furloughs are expected in the coming weeks since Congress did not extend the Payroll Support Program when it expired on Sept. 30.
” Time currently went out for U.S. airline companies and numerous of our employees,” he added. “Yet there is a glimmer of hope that our leaders in Washington will act and save these jobs prior to its far too late to reverse the clock.”
Sara Nelson, president of the Association of Flight Attendants, was a bit more blunt.
” As Secretary Mnuchin and Speaker Pelosi moved close to a deal that would offer relief to working people across the nation, President Trump provided one tweet to blow up the offer and leave millions of important workers in freefall,” Nelson stated in a declaration, adding “We require logical people to take control and assist our nation.”
Its not just airline workers who are significantly frustrated by the failure of Congress and the White House to reach an agreement on extra pandemic relief. The U.S. Travel Association states there are more than one million tasks at danger in hotels, rental vehicle companies, dining establishments, merchants and other services that count on travel and tourism.
” We are discouraged in the extreme that Congress and the administration stopped working to reach agreement on the relief this market so desperately required, regardless of clear evidence of installing damage,” stated Roger Dow, the Associations president, adding that cutting off further settlements “is woefully shortsighted.”
” Hardworking Americans whose incomes depend upon travel and tourist can not wait till after the election for relief,” he said in a statement. “The truth is that small organizations in every pocket of America are shuttering (and) needed relief months back.”
The group pointed out new data from the financial research study firm Tourism Economics, which suggests that half of all travel-supported jobs will be lost by December– an additional 1.3 million tasks– if there is no addition financial relief. Its estimated that travel supported 11% of all pre-pandemic jobs, making an across the country economic recovery unlikely without a dramatic rebound or federal support for the sector.