American Airlines expects to receive $ 12 billion in aid as part of the United States government’s financial assistance plan for airlines during the coronavirus pandemic.
According to CEO Doug Parker, pre-conditions for the governmental aid package include the ban on firing employees or reducing salaries for at least six months. However, the aid does not prevent the Airline from adopting other cost containment measures.
Similar announcement was made by competitor United Airlines last week. “Funds will be used to allow the continuity of the essential service provided and to preserve jobs. We are confident that it will permit to go through this crisis, even in worst scenario” said the Airline’s executives.
With most flights canceled a few weeks ago, American Airlines proposes a voluntary early retirement plan for employees, offering the payment of a partial salary.
The US government aide package has made $ 50 billion available to the airline industry as part of the more than $ 2 trillion US economic rescue plan. Subsidies are to be used to maintain jobs and wages until 30 September. In addition, after the crisis, airlines must continue to serve the markets to which they flew until March 1.
