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United Airlines threatens employee layoffs if government doesn’t help

United Airlines has threatened a lot of employee layoffs, pay cuts and furloughs if the Congress is not passing a relief for the epidemic which has broken out in the form of Coronavirus by the end of the month. The suffering has been enormous for the air travel industry in terms of the financial losses as this outbreak of coronavirus has been impacting businesses and governments all over the world as travel is restricted. On Thursday, the administration of the Transportation security has been reporting the screening the fewest amount of passengers ever for the airline travel. Close to 624,000 people had passed through the security checkpoints of the airports in comparison to the 2.4 million people who had passed through in 2019. As a response, the airlines has been cutting a lot of their flights and parking of a lot of the planes while they had been waiting for the demand of travel to see a recovery.

United has eliminated already 60% of their flights and also put a hiring freeze, while they slashed the capital spending and cut the payments for the vendors and the contractors as they chop the executive salaries by half. However a letter to the 96,000 of the employees had sent jointly by the labor union and corporate leadership which has warned that the air travel demands have been seeing a downfall, and a lot more measures for cost cutting are expected to be announced for keeping this company floating.

In the congress is not acting on the bailout plan of the airline by March end, this letter has warned the payrolls which might be slashed by close to 60%.

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