American Airlines, the Fort Worth, Texas-headquartered world’s largest airlines in terms of fleet size employing over 133,000 workers to date, said in a statement late on Tuesday that the Dallas-based carrier would slash as many as 40,000 jobs including 19,000 layoffs and furloughs as early as by October this year in order to ease off the fiscal blows stemmed off the pandemic-led restrictions in global travels.
Aside from that, executives of the world’s No. 1 multinational carrier serving over 350 destinations across the globe were quoted saying followed by the release of the announcement that another $25 billion in Federal bailout package might just have averted the furloughs and would help the ailing carrier cover about six months of labour expenses.
23,500 employees accepted layoffs, but still not enough to avoid involuntary cuts
Notably, at its Tuesday statement released late on the day the airlines had also added that about 23,500 employees had agreed to early retirements and furloughs, however, the figures fell well short of the carrier’s move to avert involuntary job cuts.
Besides, as the Texas-based aviation industry tycoon, which has been badly injured due to the pandemic-led travel restrictions amid what was left of a pandemic-scarred summer tourism season, started off the year with over 140,000 workers, but had been expected to downsize the figures fewer than 100,000 by October, came against the backdrop of a While House remark, while top officials of the Trump Administration were quoted saying on Wednesday that the US President would likely to forge ahead with a unilateral executive order to avoid the airline layoffs, had the US Congress been unable to reach a conclusive decision over a second round of pandemic stimulus bill.
Meanwhile, since US passenger traffic remains 70 per cent down compared to the same time a year earlier, addressing to a gloomier outlook ahead for the aviation industry, a spokesman for the Allied Pilots Association, Dennis Tajer said following the announcement, “We knew this day was coming. We see the dark consequences. ”