For those traveling by air today the best protection against potential COVID-19 exposure is to wear a mask during the flight. But even as some US airlines insist that passengers wear masks, enforcement has been limited and consequences for non-compliance essentially nil. This week several airlines indicated a renewed focus on enforcement of those rules, with violators potentially barred from future flights.
United Airlines
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.
China blinks, US to back down on flight ban
Looks like flights between the US and China won’t be stopping mid-month after all. Chinese regulators backed down after the US took a hard line in the negotiations.
US retaliates against China, blocking all flights
Nonstop service between the US and China will terminate later this month, ending 24 years of direct links between the countries. The move comes as the two governments escalate rhetoric on many fronts, covering trade, human rights and more.
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.
Optimism on the horizon: The Weekly Wrap 15 May 2020
Is it time to start getting excited about a travel rebound? It appears the market finally hit rock bottom so everything that happens is good news, though maybe not too much of it too quickly.
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.
DOT further relaxes airline CARES Act obligations
The US Department of Transportation (DOT) will offer airlines increased flexibility under their CARES Act obligations. But rather than choosing individual airports that will be exempt the DOT is now going to let the airlines select which stations will see service suspended.
United raises ire in cutting hours for salaried employees
Last week United Airlines informed its Management & Administrative (M&A) work group of required unpaid time off this summer. This week the carrier shared some additional details related to the plans and the news for these employees is grim.
Fighting for the middle: A pandemic seating shift
Forget the fight over who gets the arm rests; middle seats on planes are now generating real fights over if they should be occupied at all. And airlines are fueling the flames with misleading marketing messaging.