American Airlines has announced that it will cut its management and administration staff by 30%, as the airline prepares to reduce its size after demand has been reduced due to the coronavirus pandemic.
The reduction reaches more than 5000, of them around 17000 employees are from group management and sports departments. The airline indicated that it will accept voluntary losses until June 10 and will carry out forced dismissals later if that does not meet the objective.
These decisions will be announced in July and employees will remain on the payroll until September 30.
This is one of the airlines that have said they are starting to see signs that demand is picking up after government travel bans, citizen’s confinement orders, and fear of infection practically paralyzed travel in March and April.
However, the modest increases will not be enough to save thousands of jobs in the industry. The companies believe that it will take years to recover to the pre-pandemic level.
The airline indicated that it will accept voluntary losses until June 10 and does not rule out carrying out forced dismissals. Also, it aims to pose as a smaller airline shortly.
American Airlines And Easyjet Announce Drastic Cuts
American Airlines announced the elimination of 30% of its 17,000 jobs, that is, about 5,100 jobs, and Easyjet will do without a third of its payroll.
The airlines easyJet and American Airlines drastically reduce their workforce at a time when the global aviation industry suffered a sharp contraction due to the coronavirus pandemic.
American Airlines announced the elimination of 30% of its 17,000 jobs, or about 5,100 jobs.
The laid-off employees will receive their pay until September 30, to meet the conditions attached to the $5.8 billion financial bailout package American has received.
The company said its fleet will decrease by about 51 aircraft to about 302 in late September.
The aviation sector has been hit hard by the virus as many governments have suspended all flights to prevent the spread of the pathogen.
Numerous airlines are cutting staff, filing for bankruptcy, or asking for bailouts, including Lufthansa, Latam Airlines, and several of the large North American airlines. This is impacting the supply chain, and aircraft maker Boeing is also cutting staff.
Unions fear airlines are using the emergency to make unnecessary cuts.
Executives like Lundgren have also harshly criticized the British government’s plans, in particular the imposition of a 14-day quarantine for all international travelers starting June 8. Lundgren asserts that the reasoning for such a measure is unclear.