Joel Peterson, former chairman of JetBlue, on his vision for the aircraft industry.
Despite the furlough’s formidable threat to the airline industry starting this weekend, American Airlines CEO Dr Parg Parker said on Sunday that he was still hopeful Congress would reach an agreement on a new round of coronavirus stimuli that would provide assistance. Air carriers of the nation.
“There’s overwhelming bipartisan support for that. We have Republicans, Democrats, the administration say – knowing this is the right program, in the sense that it really should be enhanced because airline staff provide crucial infrastructure,” Parker said. Told CBS ‘Face the Nation. “Every bill we have is put to us, we need bills to become laws. We need laws, we don’t need bills. That’s what we’re doing and I’m confident we can get it done.”
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Parker’s hopes have been dashed as Congress has stalled for over a month on additional stimulus, with many airlines leading the way in preparing bad options for other sensitivities, as the federal government’s billion 25 billion expiration date expires on October 1. That’s when airlines can start furloughing employees.
American announced in a filing on Friday that it had received 5 5.5 billion in additional funding allocated under the Care Act following a similar move by United. Rival Delta Airlines, meanwhile, said it would reject the CARES Act loan and mortgage its frequent flyer program, Sky Miles.
| Ticker | Security | The last | Change | Change% |
|---|---|---|---|---|
| UAL | United Airlines HLDG. | 34.20 | +1.46 | + 4.46% |
| DAL | Delta airline lines | 29.78 | +0.77 | + 2.65% |
Without a new round of stimulus, however, Parker warned that employing about 100,000 aviation workers in industries is still unavoidable, and that once the furloughs begin, it has the potential to “continue to provide the services needed to get the economy back on track.” It will be very difficult. “
While President Trump has begun work using an executive order to help airlines, Parker said he would prefer a long-term compromise coming from legislation passed by Congress.
“Certainly not much time left, but enough time,” Parker said. “We just need them to come together and do what is best for America and our country and certainly for the airline business.”
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The call for Parker’s action for a new stimulus deal comes as the struggling airline has seen a “gradual improvement”, which it believes could be accelerated by lifting coronavirus-related sanctions.
“A vaccine would definitely be helpful. But, you know in between, quarantine goes away, you know, companies bring people back into the fee, get back to work,” Parker said. “Those kinds of things have a huge impact on the need for air travel.”
| Ticker | Security | The last | Change | Change% |
|---|---|---|---|---|
| AL | American Airlines Group INC. | 12.29 | +0.52 | + 4.42% |
According to Parker, American revenue is expected to be down about 75% in the third quarter and 65% in the fourth quarter.
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