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Airlines Send Letter Asking for Stimulus Money Sooner Than Later



Not even three days after Trump signed the stimulus package into law, U.S. airlines want that $50 billion more sooner than later.

The CEOs of American, Delta, United, Alaska, JetBlue, Southwest and Hawaiian airlines, as well as three cargo and package carriers jointly wrote a letter to the U.S. Treasury Dept. asking the feds to move quickly to release the $25 billion in grants and $25 billion in loans, coronavirus-airlines/major-airlines-urge-u-s-treasury-to-disburse-assistance-quickly-idUSKBN21H0A0″ target=”_blank” rel=”nofollow noopener noreferrer”>according to Reuters.

The letter suggested the loans be divided by each passenger carrier’s pro-rata share of “system available seat miles” for 2019 operations. For cargo carriers, which will receive $8 billion, the letters said the loans should be divided by “revenue ton-miles” for 2019 operations.

The airlines stressed in the letter “that we are speaking with one voice when we propose these formula allocations.”

But American Airlines said last week that as the carrier that spent more on salaries and benefits than any other airline, it deserves $12 billion of the $50 billion pie. The grants to cover employee salaries should sway in American’s direction is it is based on 2019 payroll. Last week Southwest Airlines offered voluntary partially paid leaves to avoid accepting stimulus money, but it appears they’ve changed their mind?

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Emirates Announces Firing Employees Amid the Pandemic



Emirates Airline, the last holdout among the Gulf region‘s three major East-West carriers in retaining its workforce announced on May 31, 2020, that it had fired an undisclosed number of employees, due to the near-shutdown of global air travel amid COVID-19.

The other two—Abu Dhabi’s Etihad and Doha-based Qatar Airways—had already scaled back in terms of staffing as the virus spread, virtually eliminating passenger demand and causing international borders to slam shut.

While Emirates has been applauded during the pandemic for continuing to run repatriation flights around the globe, as well as delivering cargo and critical supplies, it has been dramatically affected by the halting of international passenger travel, just like the rest of the world’s airlines.

In a statement, the company said, “We have endeavored to sustain the current family as is…but have come to the conclusion that we, unfortunately, have to say goodbye to a few of the wonderful people that worked with us.”

Without revealing any particulars of the mass firing, Emirates assured that those being axed from its workforce would be treated, “with fairness and respect.”

ABC News reported that to try and balance some of the immense losses the airline continues to suffer, Dubai’s Crown Prince, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, injected an undisclosed amount of equity into its operations back in March.

Although the flag carrier, owned by a Dubai sovereign wealth fund, had already reduced its staff members’ pay during the course of the global health crisis.

Meanwhile, Emirates’ home base, Dubai International Airport—typically the world’s busiest in terms of international passenger traffic—has also been running only a fraction of its normal operations.

Dubai, which has positioned itself as a critical hub for the free movement of people, goods and capital from around the globe (all of which the pandemic has disrupted), now depends heavily upon a resumption of activity at its airport.

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