American Airlines, Delta, United and more. How US companies will go downhill
Airlines floundering due to Covid-19. All the recent announcements on cuts and restructurings from American Airlines and beyond in the United States
Airlines floundering due to Covid-19.
There is no place where the crisis in the sector is more visible than the US: yesterday the giant American Airlines announced that it will cut 19,000 jobs if Congress does not extend aid to the companies included in the first anti-Coronavirus aid package. has exhausted the ceiling of 25 billion dollars.
AMERICAN WILL CUT 19 THOUSAND POSTS IF THE GOVERNMENT DOES NOT INTERVENE
The company cannot actually fire anyone before September 30, as required by the clauses of Congress's anti-Covid package. But there is no doubt that with the arrival of that date – if yet another bailout by Parliament does not materialize – American will proceed with the planned layoffs, given that the company is operating at about a quarter of its capacity and that cuts in international flights have reached 75%.
The cuts will also include 17,500 unionized workers, including pilots, flight attendants and administrators. Many employees have meanwhile been invited to voluntarily resign or have been placed on early retirement. There are already 12,500 who have spontaneously emptied their offices.
"We came to you many times through the pandemic, often with sad updates on a world that none of us would have imagined," they wrote in a note the CEO and President of American, Doug Parker and Robert Isom. "Today we have to share the toughest message of all: the announcement of involuntary staff reductions starting October 1".
If Athens cries, Sparta does not laugh. The situation of the other US airlines also appears dramatic, in the absence of blessed aid from Congress, which is however on vacation and cannot intervene.
FROM DELTA TO UNITED TO SPIRIT THERE ARE NUMEROUS COMPANIES WITH WATER IN THE THROAT
Delta on Monday announced the sacking of 1,941 pilots if an agreement is not reached with unions on cost cutting.
United warned that many of its 36,000 employees are at risk if federal programs do not intervene.
About half of Spirit's 2,500 pilots are working part-time to avoid firing.
Of course, the scourge that is affecting the sector is not the prerogative of the US alone. In fact, there are many countries where airlines are in difficulty and are implementing a second wave of cost and personnel cuts, as emerges from a reconstruction of the Agi .
ALSO IN THE REST OF THE WORLD THE SITUATION IS SERIOUS: THE CASES OF LUFTHANSA, AIR FRANCE, QANTAS, FINNAIR AND SAS
Lufthansa which has already announced 22,000 exits, about three times those that Air France will carry out.
Australia's Qantas, which already cut 6,000 jobs in June, said it will eliminate another 2,500 jobs by outsourcing handling to Australia to lower costs and absorb the impact on fallout from the coronavirus pandemic.
Finnair will also cut 1,000 jobs, or approximately 15% of its employee base, and will seek to make other savings operationally.
The most dramatic situation, however, appears to be that of the Swedish SAS, which after closing the third quarter of its fiscal year, with a loss of 228 million euros, and having already put 90% of its employees on leave in mid-March, announced intends to cut 1,900 positions in Sweden, 1,300 in Norway and 1,600 in Denmark, equal to 40% of its workforce.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/american-airlines-delta-united-e-non-solo-come-andranno-in-picchiata-le-compagnie-usa/ on Wed, 26 Aug 2020 06:26:52 +0000.