Flight cancellations are skyrocketing, the biggest U.S. airlines are internally thinking about a voluntary shutdown of all passenger flights across the U.S. and on the remaining flights that are still operating, it’s not uncommon to have only a handful of passengers.
In this economy (if we can call it economy) some airlines are burning $50M in cash, each day. AA is practically out of business right now according to Investor Place. They are assuming it would run out of cash around June 1st.
This kind of situation cannot go for a long time and smaller companies already started going out of business. But the Big 4 (Delta Air Lines, United, Southwest and AA) are still in business and waiting for the bailout bill, or any type of help for that matter.
According to the chatter on social media, namely Twitter, American Airlines already started telling their employees to brace for the storm ahead.
Christine Macdonald said that “company is already telling them (employees) that layoffs are coming and the remainder of work force should expect 20% salary decrease”.
My husband works for AA.— Christine MacDonald (@chrismac2562) March 24, 2020
Company already telling them that layoffs are coming and the remainder of work force should expect 20% salary decrease.
That's if they get a bailout.
Otherwise, everyone gone.
And that’s if they (American Airines) get a bailout.
American Airline stocks (AAL) are 60% down since February 10, even though AAL stocks jumped 35% up today on a positive news from the White House. But experts are weighing in that this is just a “dad cat bounce”.
Some AA employees are saying that “AA is offering 1-12 month off without pay and no unemployment allowed. They have to respond by Monday, otherwise round 2 will be involuntary layoffs.” while user by the name of Ron Mann is saying pretty much the same but instead of 1-12 months he talks about 3-6-9 optins.
Niece works for American at LAX. Been given option of a 3-6-9 month voluntary LOA paying for her benefits at their rate. If not enough take it, layoffs. If airlines get assistance, layoffs delayed until at least September. Hope the Ds who vote against this help, rot in hell.— Ron Mann (@RonMann19) March 23, 2020
And for the end, View From The Wing reports that a group of 325 employees at American Airlines ‘Skyview’ campus headquarters signed a petition to work from home following the advice and request of local governments.