American Airlines to reduce flights owing to a very low demand

Monday, August 24, 2020

American airlines recently decided to drop flights to around 15 cities in October owing to a consistent low demand in travel. The Airlines of-course identified the pandemic as a key cause for lowering the demand in flights, causing sudden drop in travel.

American spokesperson confirmed that the reduced flight movement will continue from October 7 to November 3. During this period they have decided to drop fights to cities such as Sioux City, Iowa; New Haven, Connecticut; and Springfield, Illinois. This is one of the first steps taken by America to reschedule their network, communication and plans are yet to be made official, opined an airline spokesperson.

A substantial pandemic-relief amount was sanctioned in March set aside up to $50 billion in cash and low-interest loans for the nation’s passenger airlines. American was the main receiver —USD 10.7 billion when there is a pending loan wins final approval from the U.S. Treasury Department.

The Passenger airlines along with respective labour unions are lobbying for an additional $25 billion to keep paying workers and avoid furloughs through next March. Cargo airlines as well as the contract workers would get USD 7 billion. The thrust by airlines and labour has also gained a noticeable support in Washington. President Donald Trump mentioned about extending support to the airlines on asking about the proposal.

The situation is however tense and discussions waiting. Workers and associates expect a larger virus relief package including benefits for unemployed and victims of sudden layoff. However, the decision is still pending as it will be announced only after the discussions and negotiations between the Democrats and the White House that broke down more than a week ago.

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