Saturday, July 18, 2020

American Airlines Announce Possible 25,000 Layoffs

      Yesterday, American Airlines announced that layoffs will probably be made to 25,000 employees by October 1st.   Carrying huge debt, more than the other large domestic carriers,  American must pare costs in the face of continued decline in passengers.   The summer season was already suspect before it even started.   Thousands of flights had to be cancelled as flying plans were altered as the public changed its preferred mode of travel.   Internationally, most countries decided to quarantine all Americans arriving in the EU and many other countries.
      However, American's CEO announced that the company would increase flights this summer, betting on a resurgence of demand.   This comes at a time when COVID cases are spiking across the country with few exceptions.   While New York State has seen a steady decline in new cases and deaths, new locations have experience large increases in cases.   All citizens are understandably aware of the conditions onboard all aircraft:  tight seating, recirculated air, no FAA rules requiring masks or health checks before boarding, and uncertain seating arrangements.  Is the plane full? At 50%?  60%?  Is it cleaned before boarding?  
      Unless a passenger is a first time flier, most experienced passengers have little sympathy for the airlines and their respective economic circumstances.   After years of abusive treatment, the flying public wants nothing to do with these monopolistic industry giants.   Remember the fees?   Remember when Dr. Gao was hauled off a flight to make room for a company employee returning to base?  Too much weight in your carryon bag?  Pay more, now.   Have to cancel?  $250 please.  Oh, missed a flight-?  Too bad.  Loser.
      American Airlines will fail, despite taxpayer intervention.  Adios.

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