Facing a continued downturn in demand Hawaiian Airlines announced plans to suspend its interisland flights operated under the ‘Ohana brand. The carrier must receive approval from the Department of Transportation for that move, however, and an adverse ruling could create a significant operational challenge.
CARES Act
Spirit Airlines avoids pilot furloughs in October
Spirit Airlines will not involuntarily furlough any pilots in October when the CARES Act Payroll Support Program funding expires. The news comes just days after the company and the Air Line Pilots Association representing its pilots indicated that 117 positions were at risk.
ExpressJet to wind down operations on 30 September
ExpressJet will halt its regional operations for United at the end of September rather than trying to slowly trim the schedule through the end of the year.
American to suspend 15 markets as CARES Act funding expires
With federal government subsidies set to expire airlines will undoubtedly trim their route maps. American Airlines announced its cuts first, with 15 markets set to be suspended in October, barring additional federal funding.
JetBlue plans to outsource airport operations at (more) smaller destinations
The cost cutting continues for airlines. Federal payroll subsidies will end on October 1, 2020, and with that the requirement to keep the current staffing levels. For JetBlue this translates into a decision finalized this week to contract out for staffing at some of its smaller stations. In a letter to airport employees on Tuesday […]
United plans $5 billion loan against MileagePlus
United Airlines will secure an additional $5 billion in funding by taking a loan against the MileagePlus loyalty program. The company announced the plans Monday morning as part of an update to its liquidity position. With the loan, and other CARES Act funds, the company anticipates approximately $17 billion in liquidity by September 2020.
Frontier, Mobile bicker over flights to Orlando
At first glance the fight between Mobile, Alabama and Frontier Airlines makes little sense. Why should a city fight so hard for a single flight and route running empty a couple days per week?
American Airlines seeks buyouts of thousands of workers
Thousands of American Airlines employees face a difficult decision in the coming weeks. Federal payroll support funding is running out and some 17,000 employees must now decide if they’re willing to take a buy-out package from the company or risk being laid off.
JetBlue plans return of international markets in June
JetBlue’s international route network virtually disappeared as a result of the COVID-19 pandemic. Rapidly shifting entry requirements and limited demand forced dozens of markets to close. Headed into June, however, the company sees some signs of optimism and opportunity as it anticipates reopening 13 destinations.
United faces lawsuit over M&A employees pay cut
Facing 20 days of unpaid leave and a forced vacation schedule at least one United Airlines employees has turned to the courts for relief. A class action suit seeks court-ordered enforcement of the terms of United’s agreement with the US government under the Payroll Support Program section of the CARES Act, including reversal of the new policy.