American proceeds with 19,000 furloughs, asks for PSP extension

American Airlines (A1G) (AAL) said it will proceed with its plan to furlough 19,000 employees but will stop the process if the U.S. government extends COVID-19 relief aid.

As the U.S. Coronavirus Aid, Relief, and Economic Security Act (CARES) deadline comes to an end on October 1, 2020, so does the payroll aid for the Airline’s employees.

The 19,000 furloughs, announced on August 25, will proceed as intended, the statement by the airline’s CEO Doug Parker revealed a day before the CARES act expiration.

“Despite enormous bipartisan support for an extension of the PSP (Payroll Support Package), our elected officials have not been able to reach agreement on a COVID-19 relief package that would enable this extension,” the CEO said in the letter on September 30, adding, “As a result, tomorrow, we will begin the difficult process of furloughing 19,000 of our hardworking and dedicated colleagues.”

The letter also said that according to the U.S. Secretary of Treasury Steven Mnuchin, the PSP extension is currently under negotiation between the White House and Speaker Nancy Pelosi.

If these negotiations are successful, Parker promised that American Airlines (A1G) (AAL) would “reverse the furlough processes and recall any impacted team members.”

The airline’s chief executive finished the letter by urging its employees to continue contacting their elected officials and ask to extend the PSP.


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