American Eyes Ending Service to 30 Cities
Joe Cortez August 13, 2020
With no additional relief in sight for passenger carriers, American Airlines says they could be forced to axe 30 cities from their network once the CARES Act support ends. The potential cuts are just one of many different ways the airline is looking to save money in the event Congress doesn’t act.
In addition to the threatened job cuts, American Airlines could be trimming their overall network, if Congress doesn’t offer additional funds to keep the airlines afloat. CNBC reports the Fort Worth-based airline could end service to 30 cities as soon as Oct. 1, 2020.
Cuts Could Come as CARES Act Support Ends
As part of the bailout package approved in the CARES Act, airlines were required to maintain a “minimum level of service” through Sept. 30, 2020. For most carriers, this meant operating the majority of their flights and keeping staff on the payroll, even if flyers were scarce.
With those conditions coming to an end, airlines are looking for ways to cut their operating costs and maintain their bottom line. As part of their reductions, American sent WARN notices to over 25,000 employees, putting them on notice that they could be furloughed.
But displacing employees may not be enough of a cut for American. Speaking under the condition of anonymity to CNBC, leaders at American warn that 30 cities may be removed from American’s schedule this fall. The airline employee did not specify what cities would be cut, or if the route trimming is final.
If American decides to end service to certain cities, they may be focusing on markets where there is overlapped coverage. After announcing a partnership with JetBlue, and Alaska expediting its membership into the Oneworld alliance, American flyers will have more options to arrive at their final destination. However, the trade off may come at the cost of price or convenience.
Unions and Airlines Petition for More Support, While the Senate Walks Away
Both aviation unions and airlines have been asking Washington for more support, including Payroll Support Program (PSP) funds to keep airline employees on payrolls. Two of the biggest unions – the Air Line Pilots Association and the Association of Flight Attendants-CWA – asked in an open letter in The Hill for Congress to extend the PSP provisions of the CARES Act. Additionally, Southwest Airlines chief executive Gary Kelly was the first major airline leader to publicly join the unions in asking Capitol Hill to come to the aid of the airlines.
If a bill is coming, it may not be decided upon until after Labor Day. On Thursday, Aug. 13, 2020, CNBC reports the U.S. Senate adjourned for their annual summer break. Although senators are asked to be flexible in their plans in case a deal is reached, no deal for a “phase four” aid package is currently on the table.
First folks lets look at the rhetoric here AA could well be posturing as others certainly will be, to cause panic among cities and towns. so it might well be Parker's game playing, Having said that get over it cuts are coming not only domestically but internationally. Our days of simply hoping on the next flight are over for the foreseeable future. Flights will be reduced and positions within the airline industry as in most will be reduced some more than others, but the once feared pilot shortage is gone.
Honestly, who cares? AA sells a degrading experience and then incrementally charges customers to make the experience less degrading, Who cares what happens to them?
@chx1975 That's what you get when you have a blogger trying to be a journalist.
@ honey west - it doesn't matter who left first as the republicans/White House refused to even consider meeting in the financial middle of the two proposals. The democrats were suppose to stick around without good faith bargaining?
Let them fail.