Pilots talk while looking at the tail of an American Airlines plane.
Mike Stone | Reuters
American Airlines plans to warn pilots this week of possible permits, the latest airline to prepare employees for job cuts as the coronavirus pandemic shakes up airline business.
Terms of $ 25 billion in federal aid for the coronavirus prohibit carriers from firing workers or reducing their pay rates until September 30, but weak demand has forced airlines to cut costs.
The Worker Adjustment and Recycling Notification Act requires employers to notify staff of possible layoffs or temporary leave generally 60 days in advance, and employees receiving these warnings are not guaranteed to be terminated.
American has about 15,000 pilots and has already offered early retirement packages under an agreement with the Allied Pilots Association, its union.
“Our expectation is that WARN notices will be sent next week,” Chip Long, managing director of flight line operations at American, said in an audio message on July 10, which was heard by CNBC. “Again, our hope is to engage with APA very soon and seriously explore every opportunity to care for our pilots while we care for our airline.”
The exact number of pilots to receive the warnings was not immediately clear. American had no comment. Delta, meanwhile, has warned more than 2,500 pilots about possible licenses, while United has informed more than 2,200 of its pilots.
Earlier this month, a Fort Worth, Texas-based American said he has an over-staff of about 20,000 people due to his reduced fall hours. That includes up to 8,000 flight attendants. Other work groups, in addition to the pilots, are likely to receive WARN notices.
Airline executives urge employees to accept early retirement packages and purchases, but they also warned they would have to resort to permits and job cuts if there are not enough volunteers.
Last week, United told nearly 36,000 employees – nearly 40% of its workforce – that they could be laid off.
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