More than 32,000 airline workers were furloughed Thursday, as pandemic aid expired and Washington leaders failed to agree to additional relief.
American Airlines and United Airlines have sent furlough notices to over 32,000 workers. Alaska Airlines announced that over 500 jobs would be furloughed, according to local news.
House Speaker Nancy Pelosi indicated Thursday that Democrats and the White House remain far apart on a deal to pass a pandemic relief legislative package, which would include airline aid.
“We come from two different places,” Pelosi told reporters Thursday. “Hopefully, we can find our common ground on this and do so soon.”
While the parties differ on certain areas of relief, there is bipartisan support to provide aid to the airlines.
Pelosi is expected to continue speaking to Treasury Secretary Steven Mnuchin on getting a deal for a relief package.
Still, the House is now expected to vote on Democrats’ $2.2 trillion relief bill, which Republicans have rejected, a bad sign for talks. The House Democratic bill was only to receive a vote if an agreement could not be reached with the White House on a bipartisan relief deal.
The House Democrats’ bill provides $25 billion to airlines to prevent layoffs. It also renews the $600 enhanced unemployment benefit, which Republicans contend is too high, and stops jobless workers from seeking employment. The House Democrat bill is not expected to pass the Republican-controlled Senate, which means it has no chance of becoming law.
The White House has offered $20 billion for airlines in a package costing $1.6 trillion. Many Senate Republicans think the price is too high, while House Democrats oppose the package costing less than $2 trillion.
The CARES Act enacted in March provided the airline industry $25 billion in aid as long as no workers were furloughed before Thursday. The airline executives have asked for an additional $25 billion in aid, which would be expected to help keep workers employed through March 2021.
Doug Parker, CEO of American, said Thursday that the furloughs would be reversed if Washington passed another relief package.
Nicholas Calio, president and CEO of advocacy group Airlines for America, cautioned that it would be difficult to reverse furloughs lasting more than a couple of days because workers would fall behind in the training required to do their jobs.
“You can’t just bring them back and put them back on the airplane or put the machinist back under the airline … There’s a constant process of recertification … You can’t just take the keys and throw them at the pilot [and say], ‘OK, start up the plane’ after they’ve been off for a month or two,” he told CNN.
