We all know in this coronavirus, things are not going as people have planned. Every area is affected by it.
Travelling has a major effect. Recently there is news that Airlines are facing a very slow recovery.
We all know that these days very few people are travelling and getting with exact revenue, it becomes quite impossible for airlines.
Recently the American Airlines and United Airlines have cut more than 30,000 jobs.
If it might sound like there is no idea you have about it. Just dig out this article till the last.
A Closer Look at the Situation:
To passenger Airlines, there was a $50 Billion bailout given by Congress in March. The industry was hoping that it would be able to help them in every case until the fall.
Everyone was expecting that as soon as there will be the vaccine people will start to travel and they were expecting a vaccine to be closer at their hands.
But this is not the case at all. Several months later, all the hopes gone into vain, and people are just facing a lot of crises.
When the United Airlines and American Airlines are going through the data and where they have no hope of insight considering the vaccines, they reached the conclusion that they will provide leave to more than 32,000 workers.
The companies also mentioned that they will be going to reverse the cut in case Congress and the Trump administration come up with the agreement to extend more aid to the industry.
But they have also mentioned that in case it has not happened, then it will continue as they decided.
The American Chief Executive, Doug Parker, came out with the statement where he was feeling extremely sorry because of the outcome decided by them.
They also mention the same to the Employees later on Wednesday.
He also mentioned that it is not something that they deserve but due to the ongoing crisis, the need to take these Harsh steps.
By the March stimulus for the airlines were prohibited for undertaking any major cut where they can fly and who they can employ. For the month there was nothing to come out.
But right now the situations are taking the face which no one has expected.
Also, it is quite surprising that for so many months the union created problems for people and postponed the day of reckoning and arguing about the airlines and the crucial part to the economy.
They mentioned that they will be going to support other employers like the Air Force, car rental Agencies, hotels and restaurants and so on.
The campaign worked out, but only to an extent. The results were not as they were expected.
The bipartisan majority of lawmakers in the House of Representatives said that they will be going to have a lifeline to the industry but it is important for them to put the efforts accordingly.
As Congress and the administration remained deadlocked on the same, there was no conclusion coming into consideration.
There is no doubt in the fact that the Trump administration was looking forward to a different way so that they will be able to help the industry unilaterally.
But somehow their executive actions did not come to an existence, and they did not cause any benefit to the industry.
Moreover, many of the officials have concluded that the options considered by the Trump administration are not up to the mark.
The treasury secretary Steven Mnuchin also indicated that it is important for the Congress to authorize the treasury so that they will be able to redirect the leftover funds.
But the money was appropriated for backstopping Federal Reserve lending programs as well.
There is no hope that people will be able to feel comfortable.
In theory, the airline is only applicable to apply for some and used funds set aside for the companies, but they cannot expect very much from them.
The department of Defence also certifies that the money they can use with onerous payment terms only.
There is no proper report for the same to how the money will be going to distributed, and companies will be able to feel comfortable.
The national security is still silent about it, and there is no particular clarification from there as well.
The Airlines also mentioned that this recovery is quite slower, and hence they need to take the steps.
They have cut out the pay of the volunteers, and some of them go for early retirement and unpaid leave.
The major reason to take the step because they need to maintain things accordingly.
At United, almost 36,000 of the employees are expecting to be on leave. Over 13000 employees received the letter by Thursday.
It is quite frustrating for everyone to hear this. Nowadays research is going on so that they will be able to reach a conclusion on how the industries will be going to manage in the coming years.
But there is no proper report coming out.
Recently John Grant, a Senior Analyst at OAG, came up with data and Outlook for the upcoming months. Everyone is expected for speedy recovery, but this is not the case at all.
US Airlines will be going to suffer because of bookings, and the Travellers are using vouchers as well.
Moreover, according to the analysis, it has been found that the exact rate of Travellers as it was in 2019 will be seen after so many years.
This pandemic has reduced possibilities, and people are taking enough precautions to keep themselves away from it.
Do let us know in the comment section below what is your opinion about it. If you are part of the airline, then also do share your experience with us.
