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American Airlines executives warned employees late Wednesday that the airline will have to lay off as many as 25,000 front-line workers this fall because travel has not rebounded from the coronavirus crisis as they had hoped.
The job cuts, which cover unionized employees including pilots, flight attendants, mechanics and airport workers, represent nearly 30% of the company's 85,000 front-line workers in its U.S. mainline operation. American previously cut 30% of its corporate staff, or 5,000 employees.
I suspect that there'll be a few carriers that will exit the market inside of 2 years. There's no way to "snapback" from this. It's going to be painful for many.
That said, airlines, like oil, are boom and bust. Boom times will come again, but who knows how many of the current airlines or even the personnel will even be in the market then.
That said, airlines, like oil, are boom and bust. Boom times will come again, but who knows how many of the current airlines or even the personnel will even be in the market then.
I work in the Aviation / Aerospace industry and while it's true it can be cyclical, this is a bust that is much more severe than anyone has seen, and it was completely unexpected.
Typically, the downturns are mild and with quick recoveries (even back in 2008). It's going to be years before it's back to pre-COVID levels (if ever).
And the other issue you're going to see is a massive flight of talent to other industries that are still doing well or early retirement, and when Aviation / Aerospace industry does recover, none of those workers will want to come back (just like what happened in housing and automotive back in 2008). You think the mechanic and pilot shortage is bad now, you ain't see nothing yet.
On the plus side though, the military side of aerospace is still humming along, so some of these folks may be able to transfer over to projects supporting the government.
Last edited by citidata18; 07-18-2020 at 04:12 PM..
Its not a good time to book a vacation or get a vacation refund. So many uncertainties and vendors playing hardball with cancellations. Repeat customers and frequent travelers are angry. Ports are closed. The possibility of a 2 week quarantine post vacation is real. Need to wear a mask on vacation. If the airlines make all their tickets fully refundable and cheaper, things might pick up.
I thought the airlines got this huge bailout that was suppose to prevent what American Airlines is not doing?
Correct.
And when the banks were bailed out, they did the same thing. Merged, take overs, and forced closings.
All while pocketing money.
I've lost respect for companies .
I think GM.was the last company that did good on it's bailout promise, it held it's employees as best it could. Sure some had to be let go ...
Nationalization is arguably the only way they can be saved. Otherwise it's rinse and repeat.
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