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Trump Could Act Unilaterally to Avoid U.S. Airline Layoffs, White House Says

Submitted by jhartgen@abi.org on

President Donald Trump is weighing executive action to avoid massive layoffs at U.S. airlines if Congress fails to agree a fresh coronavirus stimulus package, White House Chief of Staff Mark Meadows said yesterday, Reuters reported. His remarks came a day after American Airlines said its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October without an extension of government aid as the pandemic continues to devastate travel demand. U.S. airlines received $25 billion in payroll aid under the CARES Act to protect jobs through October and the industry has lobbied for another $25 billion to keep workers employed through March, when they hope travel demand will be stronger. Meadows said he had spoken with officials from American, as well as from United Airlines and Delta Air Lines. “We will continue to work with the administration and our bipartisan supporters in Congress and hope to come to a resolution in a timely fashion,” American said in a statement. United has warned that 36,000 jobs are at risk. Delta said Monday that it would furlough 1,941 pilots but has not detailed cuts across other employee groups.