Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Trump could act unilaterally to avoid U.S. airline layoffs, White House says

Economic IndicatorsAug 26, 2020 12:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Republican National Convention

By David Morgan and Tracy Rucinski

WASHINGTON/CHICAGO (Reuters) - President Donald Trump is weighing executive action to avoid massive layoffs at U.S. airlines if Congress fails to agree a fresh coronavirus stimulus package, White House Chief of Staff Mark Meadows said on Wednesday.

His remarks came a day after American Airlines (O:AAL) said its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October without an extension of government aid as the pandemic continues to devastate travel demand.

"If Congress is not going to work, this president is going to get to work and solve some problems. So hopefully, we can help out the airlines and keep some of those employees from being furloughed," Meadows said in an interview with Politico.

He suggested, however, that assistance would require legislative action, saying: "It would take a CARES package, I believe, to do it," referring to the $3 trillion coronavirus relief package that Congress passed earlier this year.

Airline shares were lower in early trading (DJUSAR).

U.S. airlines received $25 billion in payroll aid under the CARES Act to protect jobs through October and the industry has lobbied for another $25 billion to keep workers employed through March, when they hope travel demand will be stronger.

Meadows said he had spoken with officials from American, as well as from United Airlines (O:UAL) and Delta Air Lines (N:DAL).

"We will continue to work with the administration and our bipartisan supporters in Congress and hope to come to a resolution in a timely fashion," American said in a statement.

United has warned that 36,000 jobs are at risk. Delta said Monday that it would furlough 1,941 pilots but has not detailed cuts across other employee groups.

"Executive orders will not save our jobs," said Sara Nelson, international president of the Association of Flight Attendants-CWA told union members at 19 airlines including United.

"It will definitely take Congress acting to keep all of the job requirements in place," she said on Twitter, while adding: "Good to see WH wants to restart talks."

Talks between Meadows, Treasury Secretary Steven Mnuchin, House of Representatives Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer ended in early August, with top Democrats and the administration far apart on new legislation.

"Unfortunately, COVID-19 continues to spread and wreak havoc on our industry, and demand for air travel has not returned as anticipated," the main industry lobby A4A said in a statement, pointing to a challenging fall as airlines prepare to cut jobs and service without additional aid.

Trump could act unilaterally to avoid U.S. airline layoffs, White House says
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Jeff Howdy
Jeff Howdy Aug 28, 2020 9:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Support for the airline industry is so politicians can easily fly around the world on junkets and golfing trips paid for by lobbyists. Massive layoffs in oil industry no support for those folks.
Alvinfred Hinay
Alvinfred Hinay Aug 26, 2020 12:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So this should lift all airline stocks
Kaveh Sun
Kaveh Sun Aug 26, 2020 11:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They want to keeps paying not working pilots because if they get laid off, some will switch to other industries or retired. If demand come back a year or 2 from now, that will be a major problem for airliners n flyers.
Youdontneed Toknow
Youdontneed Toknow Aug 26, 2020 11:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So they will force companies that do not need the workers to keep them anyway...? Communism 1.0.1
Vv Pp
Vv Pp Aug 26, 2020 11:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you wish
Tre Hsi
Tre Hsi Aug 26, 2020 10:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I thought Larry Kudlow said yesterday that our economy is coming back?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email