In a town hall meting with employees, United Airlines’ CEO Scott Kirby expressed hope that an additional round of airline federal payroll support will avert looming October job cuts.
Kirby “Hopeful” That CARES Act 2 Will Pass
Speaking to employees last week, Kirby said:
“I know October 1st is a scary date that’s looking at us, is staring us in the face. And one, I am hopeful that the CARES Act will pass–CARES 2 will pass, will extend things out by six months.”
Senate Republicans have proposed a new stimulus package that would include another $1,200 check to most Americans and more funding for schools. But the initial bill, introduced on Monday, does not include an extension of payroll support for airlines.
Last month, U.S. airline unions jointly asked Congress for an additional $32 billion in payroll support, which would keep all employees on the payroll for another six months.
“Only through an extension of PSP grants can Congress ensure that airline workers will continue to stay on payroll and ready to turn the industry around, prevent mass unemployment in October, and keep aviation workers ready to lift off as travel picks back up. We urge you to include this simple and necessary provision in the next COVID-19 response package, and appreciate your continued support for airline and airline contractor employees in our country.”
You can read the full letter here (.pdf)
CARES 2 is in its early stages so there remains plenty of time for this language to be inserted into the bill.
Later in the town hall, Kirby said:
“I’d also like to thank our union partners, who’ve been there talking to us. This has not been–this is not an easy situation for anybody. But it’s also the kind of place where if we can work together, and find win-win ways to minimize even the short term impact to employees, that’s been great. And they have taken a huge leadership role in the CARES Act 2. That’s certainly the biggest thing we can do to minimize the near-term pain.”
Indeed, corporate welfare always helps the favored companies…
CONCLUSION
With an election in November and the incumbent not wanting to face derision for mass airline layoffs the month before, I think it is a given that airlines will receive at least a temporary (say 90 days) extension in personnel funding. For Kirby, that would push off painful job cuts and the showdown with unions such cuts would entail.
If VS can find outside funding, all legacy US airlines should be able too as well. If they want more money, the government should approach it the same way as Germany did with LH.
What? Germany subsidizes Lufthansa all the time. The airlines in the USA have supervisor routes and operation. It’s not even worth comparing us airlines to europeans.
When was the last time the US government had a stake in an airline instead of offering a bailout/subsidy outright?
in San Fransico the airline has already started a process that could layoff 50% of existing employees. A federal subsidy for the wages of these employees with a no clause would save these jobs. Currently people with 30 years with the company could lose their jobs. The airlines provided esential services moving troops during rapid deployments in recent times for national security
Please no. Taxpayer dollars for jobs that aren’t needed is about the dumbest thing I can think of. What makes them so special, unlike the 30M+ others who lost their jobs? I think we all can see from the first bill that delaying inevitable layoffs isn’t good policy. When travel recovers they can rehire. No more airline employee bailouts.
This is to late for the thousands of non union folks who have been told they don’t have a job and take a voluntary option to get better benefits bs staying until October .Hope it works for the unions.
Can you help me take care of my four kids then? We have already gone through our savings this past 6 months to cover the pay cuts we received. Wife had to quit her job to stay home and homeschool the kids. Their are no other airline jobs to look for, what exactly do we do?
Your poor life choices are your problem, not mine or other taxpayers. You choose to homeschool your kids, you don’t have to. You voluntarily gave up a 2nd income when your savings is so perilously low? Stupid move. Why do you only have 6 months of savings? Perhaps you have been spending too much on new phones, cars, dining out, travel, etc. instead of saving for the future. Stupid move. You’re getting plenty of assistance, unemployment benefits, lots of tax credits, you can get food stamps, etc etc. Socialism is not the answer.
I would love to throat punch you, you [redacted]!
James, please watch the language.
James, I train in Muay Thai, among other self defense measures. You wouldn’t come close to my throat before you are laid out. I am well protected against violent socialists like you. You’ll just have to be happy with your fantasies.
By the way, threats of violence means you lost the argument, well, I never even saw a counter argument, just emotional pleas and threats.
Of course there is no legitimate argument for singling out one industry’s employees for guaranteed employment, while 30M+ are out of work, simple as that.
Sounds like someone has watched The Foot Fist Way a few too many times and thinks its their own life
WR2- you’re an IDIOT! We Airline workers ARE taxpayers too!! So keep your stupid opinions about other people’s finances to yourself. Also, NO parent had a choice to NOT homeschool–in case you missed it Einstein, the Government(s); Federal, State & Local CLOSED the schools. How dare you inquire as to why someone only has 6 months of savings, that’s NONE OF YOUR BUSINESS! You don’t know what someone else’s expenses are & to assume you do, read that last word really well! How about I give you my medical bills for the 2 types of cancer I’m currently battling, that to date, just for 2020 total 2.4 million dollars & counting. YOU are what’s wrong with society!! As far as the Airlines go, DON’T spew your opinions either, you DON’T know what you’re talking about & you’re only embarrassing yourself. Good luck hitch hiking, biking, walking or swimming to your next business or vacation destination. Don’t bother commenting on my reply, I won’t read it or respond, you are NOT worth my time!
How do you defend Jared Kushner then?
You win LALF today!
So my tax money as a airline worker is ok to give to people that dont work for years is ok but when we need help and when travel demand returns the public will complain about flight delays and cancelations when there is no staff pilots ramp workers mechanics customer service or facility workers you can just re higher people over night it takes months for people to come back because of all the security back round checks and port authority red tape this is a nightmare all out of our control and not our fault
Demand doesn’t return overnight, so you don’t need to rehire overnight. Enough with the entitlement. You’re not any more special than the 30M+ others who lost their jobs. You’ll get unemployment benefits too, just like others, so you tax money argument is ridiculous.
WR2 YOU ARE THE BIGGEST, MOST SELFISH JERK I HAVE EVER MET. You really think unemployment will pay our bill indefinately until one day we can be called back to work? My four kids and I will be looking at homelessness by the end of the year if I am laid off. Then what?
You’ve never met me. Go cry me a river. I am living off my savings right now with no income, perhaps if you made better life decisions then you wouldn’t be in dire straits after only a few months of unemployment.
Actually, there is no fundamental difference. The money can be moved over to the airlines, whilst the airlines will continue to pay benefits on money not from the government, or employees will get it through unemployment benefits. It’s basically the same difference. It’s all about optics or essentially apples and oranges. For my part, I don’t care either way. Employees or furloughed employees they will still receive money from their states and the federal government with the increased unemployment compensation. Does it really how it’s paid out, seriously?
So here are some #. The airline industry drives about 1.7 trillion dollars in economic activity. Airline employees are highly trained people. Flight crews and ground crews are highly vetted. I would hope that everyone agrees that they should be looked at carefully by FBI and DHS. I takes approximately $40 to $50,000 to train one Pilot in one particular aircraft and one particular seat. If you layoff 10,000 pilot that’s 1/2 a Billion dollars to retrain when they come back.Also it takes a month or more to retain. Airline training centers only have a limited capacity. So if American Delta United Jetblue Spirit southwest all the regional airlines (so many) lay off 10’s of thousands of pilots how much will that cost. If you add on Flight Attendant mechanics ramp ticketing now it gets interesting. You just can’t turn on a switch and have the airline industry back to normal the next day,week or month. When they find a vaccine people will need to fly and the economy needs that 1.7 trillion shot in the arm. So if you can keep then employed and current that would make the comeback from this disaster muck muck faster.
“Hope” is never a sound business strategy and it is usually not a tactic taught in any MBA program. Maybe UA needs someone who is an expert in having contingency plans? Or break-up the company into more manageable business units?
@Matthew, why do you think the airlines aren’t suing New York and other states over their unenforceable and capricious quarantine policies? A few governors and mayors are doing tremendous damage to domestic aviation with unconstitutional quarantine policies. The Big 3 should sue their pants off. The public, most of which doesn’t live in the states demanding quarantines, would be supportive.
You are so dumb my friend. If u dont have any productive words you stay quiet. I just hope you and your family don’t have to go what my fellow coworkers are going through at this moment.
Says they guy who doesn’t know how to reply to a comment.
i agree there are plenty other deserving people in the usa that could use a helping hand, but most don’t have the clout and lobbying abilities of the airlines and the various airline unions. i could see a scenario that both the R’s and the D’s could agree on an extension to the end of the year if both management and labor gave something important up….management could give up bonuses for 2-3 years; labor could give up ?? (i don’t know enough about their contracts to suggest anything, but something of value) That way the R’s and the D’s could go to their constituents saying they got something back for providing payroll funding. There has got to be big fig leafs for everyone in an election year.
So, out of most of the idiotic comments here is a man who truly gets it , well put. Yes its all about give and take. I say no grants, no free money, make it loans only with favorable terms or the govt gets a piece of the company it loans to.
$32B is about $400 for a family of four. Gimme gimme gimme
We are approaching a system where the government controls the means of output. Communism. American and United are circling the drain because if poor business decisions. In a free market there has to be concequences for the risk that these companies take. Bailing out the current airlines prevents new competition from entering the market. Anyone consider that David neelan was starting up a new airline based in Utah. We have aid to the airlines and American has already laid off a significant portion of their workforce, even though paying them through 9/30. The actions of some of these carriers contradict the intention of the first cares act. The weak will fall and the strong will recover as a free market dictate. We are better off increasing aid to individuals so they can spend it and boost businesses where they spend. As an airline employee myself, let the airlines fend for themselves.
UAL took the last bailout money and spent it on propping up its stock price via buybacks. How did that help its employees (other than management types)?
Nobody else saw a problem with that?
So why should they get money again?