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Thursday, June 8, 2023

U. S. Airlines To Delay Mass Furloughs If Second Stimulus Package Comes Soon, Says Mnuchin

According to Steven Mnuchin, U.S. Treasury Secretary, the plan of mass furloughs and layoffs in the U. S. airlines might be delayed if there is a possibility of a second coronavirus stimulus deal in place recently.

Mnuchin told CNBC that he didn’t think the plan to avert U. S. airline layoff was possible but that he planned to speak to airline executives and even Nancy Pelosi, the House Speaker on Wednesday to reach a deal regarding the second coronavirus stimulus bill soon. The statement clarifies that the only way to prevent this mass U. S. airline furlough was to have a steady deal in place.

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As an addition to the statement made by Mnuchin, Doug Parker, Chief of American Airlines Group Inc AAAL.O also mentioned that if a clear path is there, the decision to make mass furloughs will “of course” be delayed.

The ongoing negotiations in the House regarding the second coronavirus stimulus bill have encouraged hope regarding the delay of mass U. S. airline furloughs. The furloughs set to start from Thursday now stands a chance to be delayed, resting on the decision of Congress regarding the second stimulus bill.

U.S. airlines and stimulus
U. S. Airlines To Delay Mass Furloughs If Second Stimulus Package Comes Soon, Says Mnuchin 2

U.S. Airline Workers To Ask For Standalone Bailout If There Is No Deal

U. S. Airline workers said on Wednesday that they were ready for a full-court defense press to convince Congress to pass the $25 billion bailouts to protect airline workers’ hobs for the next six months.

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If the second stimulus bill has to be passed, it has to happen soon or the government will have to come up with an immediate bailout strategy to prevent thousands of furloughs and layoffs. The U. S. Airlines support package will expire tonight making it crucial to reach a decision soon.

If Congress doesn’t take any action, more than ten thousand U. S. Airline workers will be furloughed from tomorrow Amanda Steinbrunn, a flight attendant mentions it’s their jobs on the line after midnight if Congress fails to back them up.

Pelosi Says There Can Be Deal By This Week

Nancy Pelosi, the Speaker, mentions that Congress can have a deal in place this week, however, the chances of having a deal with the White House by Thursday are slim to none. Moreover, the idea of a quick economic aid for the U. S. Airline workers was also shot down by industry officials as it would not be able to garner unanimous support.

Lawmakers suggest that U. S. airlines might not get a standalone economic aid as there are other industries going through similar plight. However, without a second stimulus bill, the crisis continues across the pandemic-hit nation.

U. S. airlines officials deem it impossible to have a deal by October 1. Even if there is a deal in place, they’ve not chalked out the next steps, they mention.

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