Already facing its worst crisis since 9/11, airline industry set to cut more than 35,000 jobs this week

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The furloughs are set to begin Oct. 1, when legal protections run out. Tens of thousands more workers have seen hours cut or taken unpaid leave as the coronavirus has shrunk demand for air travel.

“I’m going to make it,” Ballesteros recalls thinking. “I’m going to have some security. A retirement. A 401. This is an amazing job. I was just so happy.”Soon, news of a novel coronavirus from Wuhan, China, began spreading. In her first few months on the job, the 29-year-old was working evacuation flights as people sought to get to their home countries as the world locked down.

Though the aviation industry took a hit from 9/11, a different coronavirus outbreak in 2003 and a deep recession in 2008, economists say those episodes — while painful — pale in comparison to this year’s calamity. Daniel K. Elwell, deputy administrator at the Federal Aviation Administration, recently told state aviation leaders that the government is consulting with airlines and international officials on plans to “incentivize travel while keeping passengers safe and healthy,” and said details would be forthcoming.

United and American, which are heavily unionized, kept most employees on their payrolls, and the two airlines account for nearly all of the coming job losses. American, which accepted $5.8 billion in payroll support, is preparing to furlough 19,000 of its 107,000 employees. Chief Executive Doug Parker said that with his company burning through $1 billion a month, he has no choice but to move forward.

“It would be a really bad thing for American Airlines and it would be a really bad thing for our country,” he said. The volunteers keep a significant chunk of their wages and all their benefits. About 12,500 employees are participating. Pilots were offered about half of their pay, a Southwest pilot said in an interview, though the company declined to provide specific compensation figures. The company can call the pilots back to work with a minimum of 30 days notice, but said it would try volunteers first “if additional pilots are ever needed.

“The great thing is, you’re getting rid of your top earners,” said the Southwest pilot, who spoke on the condition of anonymity because employees are not authorized to speak to media. “It helps all of us.” Nonetheless, there is broad bipartisan support for renewing the program through April, even among those like Rep. Jan Schakowsky , who questioned why the Treasury Department allowed companies receiving aid to cut hours. She said she hopes “that it can be reauthorized quickly” and that new safeguards could be included in an extension.Early last week, Sens.

On Thursday, House Speaker Nancy Pelosi said she would begin crafting a new proposal that would include help for the airlines and took steps to open negotiations with the Trump administration. For Valentine, 2019 had been a difficult year: Six months after starting a new job, her husband suffered a massive stroke.These days, Valentine, 41, who has worked at United for 15 years, finds herself anxious and worried. Worried about supporting six kids. Worried about bills — phone, electricity and gas. Worried about what she’ll do if she’s furloughed and loses her medical coverage in the midst of a pandemic.

 

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