Show an ad over header. AMP

Anxious days for airline workers as mass layoffs loom

The clock is ticking for tens of thousands of anxious airline employees, who face mass reductions when the government's current payroll support program expires on Sept. 30.

Where it stands: Airline CEOs met Thursday with White House Chief of Staff Mark Meadows, who said President Trump would support an additional $25 billion from Congress to extend the current aid package through next March.


  • But lawmakers remain deeply divided over a broader economic relief package, and it's not clear they'll act on any stimulus deal before the November election.

What they're saying: “I never thought I’d say $25 billion was a small number, but compared to $1.5 trillion, it’s a rather small amount of additional assistance that could potentially keep 30,000 to 50,000 workers on the payroll,” Meadows told reporters after the meeting.

  • Help for airlines was not part of a last-ditch, $1.5 trillion stimulus bill proposed earlier this week by a bipartisan group of House members known as the Problem Solvers Caucus.
  • Meadows said the White House has looked at a "number of options" involving executive actions, but "all of them are less than ideal."
  • "There's a few things that we could do but I don't know that it actually solves the problem of curtailing furloughed workers," he said.

The big picture: U.S. airlines were on their way to another strong year when the pandemic hit, halting most air traffic and causing airline revenue to evaporate overnight.

  • Under the initial CARES Act passed by Congress in April, airlines received $25 billion to keep planes flying and workers on the payroll during the crisis.
  • At the same time, airlines have slashed costs and reduced staff through voluntary buyouts and furloughs, while raising debt in public markets and using their frequent flyer programs as collateral.

But the public health crisis has persisted and air travel shows no signs of a recovery.

  • Today, U.S. passenger volumes are still running 65% below last year, according to Airlines for America.
  • “In March, we all hoped to be in a very different place by now," said Sara Nelson, president of the flight attendants' union. "But as the U.S. continues to lead the world in cases and deaths, (global) aviation demand is still down 85% and we are cut off from the rest of the world."

Airlines are bending over backward to lure travelers back, with enhanced cleaning procedures and the elimination of unpopular fees for changing or canceling flights.

  • Mask policies are being strictly enforced — with the threat of a lifetime ban for passengers who fail to comply.
  • And many airlines have extended a promise to keep middle seats open to promote social distancing.
  • Some are adding flights from northern cities to warm weather destinations this winter to entice passengers to travel.

Yes, but: With the peak leisure travel season over and virtually no business travel happening, airlines — and their employees — face a grim deadline in less than two weeks.

  • American Airlines plans to cut 19,000 employees and United warned of more than 16,000 cuts.
  • Delta Air Lines said enough flight attendants, service reps and baggage handlers volunteered to leave that it should be able to avoid involuntary furloughs. Some 2,000 pilots are still at risk, however.

Tim Kaine, Susan Collins pitch Senate colleagues on censuring Donald Trump

Sens. Tim Kaine and Susan Collins are privately pitching their colleagues on a bipartisan resolution censuring former President Trump, three sources familiar with the discussions tell Axios.

Why it matters: Senators are looking for a way to condemn Trump on-the-record as it becomes increasingly unlikely Democrats will obtain the 17 Republican votes needed to gain a conviction in his second impeachment.

Keep reading... Show less

Anthony Coley to lead Justice Department public affairs

Judge Merrick Garland, President Biden’s nominee for attorney general, has tapped Anthony Coley, an Obama-era Treasury Department official, to serve as a senior adviser and lead public affairs at the Department of Justice, according to people familiar with the matter.

Why it matters: As the public face of the DOJ, Coley will help explain — and defend — the department's actions, from sensitive cases to prosecutorial decisions, including the investigation into Hunter Biden.

Keep reading... Show less

AP: Justice Dept. rescinds "zero tolerance" policy

President Biden's acting Attorney General Monty Wilkinson issued a memo on Tuesday to revoke the Trump administration's "zero tolerance" immigration policy, which separated thousands of migrant children from their families at the U.S.-Mexico border, AP first reported.

Driving the news: A recent report by Justice Department Inspector General Michael Horowitz emphasized the internal chaos at the agency over the implementation of the policy, which resulted in 545 parents separated from their children as of October 2020.

Keep reading... Show less

Biden makes a down payment on racial equity with a series of executive orders

President Biden is making a down payment on racial equity in a series of executive orders dealing with everything from private prisons to housing discrimination, treatment of Asian Americans and relations with indigenous tribes.

The big picture: Police reform and voting rights legislation will take time to pass in Congress. But with the stroke of his pen, one week into the job Biden is taking steps within his power as he seeks to change the tone on racial justice from former President Trump.

Keep reading... Show less

Most Senate Republicans join Rand Paul effort to dismiss Trump's 2nd impeachment trial

Forty-five Senate Republicans, including Minority Leader Mitch McConnell, joined Sen. Rand Paul (R-Ky.) on Tuesday in an effort to dismiss former President Trump's second impeachment trial.

Why it matters: The vote serves as a precursor to how senators will approach next month's impeachment trial. The House impeached Trump for a second time for "incitement of insurrection" following events from Jan 6. when a pro-Trump mob stormed the Capitol.

Keep reading... Show less

Texas judge temporarily halts Biden's 100-day deportation freeze

A federal judge in Texas has temporarily blocked the Biden administration's 100-day freeze on deporting unauthorized immigrants.

Why it matters: Biden has set an ambitious immigration agenda, but could face pushback from the courts.

Keep reading... Show less

Reddit is running Wall Street

Wall Street is locked in a battle of will between professional investors who live in Greenwich and amateur investors who congregate on Reddit. So far, the amateurs are winning, judging by increases in their chosen stocks, like GameStop and Bed, Bath & Beyond.

Axios Re:Cap goes deeper into what's really happening, the mechanics of stock "shorting" and what it means for the markets' future, with Axios chief financial correspondent Felix Salmon.

Biden holds first phone call with Putin, raises Navalny arrest

President Biden on Tuesday held his first call since taking office with Vladimir Putin, pressing the Russian president on the arrest of opposition leader Alexey Navalny and the Russia-linked hack on U.S. government agencies, AP reports.

The state of play: Biden also planned to raise arms control, bounties allegedly placed on U.S. troops in Afghanistan and the war in Ukraine, according to White House press secretary Jen Psaki, who said the call took place while she was delivering a press briefing. Psaki added that a full readout will be provided later Tuesday.

Keep reading... Show less

Insights

mail-copy

Get Goodhumans in your inbox

Most Read

More Stories