Delta will avoid pilot furloughs if they agree to reduced minimum pay: memo By Reuters


© Reuters. Delta Air Lines passenger planes parked in Birmingham

By David Shepardson

WASHINGTON (Reuters) – Delta Air Lines (NYSE:) told pilots on Friday it would avoid furloughs if they agreed to reduced guaranteed minimum pay, according to a memo seen by Reuters.

Delta is still struggling due to a dramatic decline in travel demand caused by the coronavirus pandemic. This week it reported second quarter revenue fell 91% and a $3.9 billion adjusted pre-tax loss.

The airline is working to further cut costs and more than 17,000 employees are taking voluntary departure packages, including more than 1,700 of 7,900 pilot ahead of a Sunday deadline for pilots to accept voluntary packages.

Delta flight operations senior vice president John Laughter

said in a memo the company is “committed to preventing involuntary furloughs for as many, if not all, Delta people.”

Laughter said the company proposed reducing guaranteed minimum pilot pay by 15% for 12 months in exchange for a guarantee of no furloughs for one year.

“Our approach is to spread the work of a smaller airline among all our pilots to preserve all jobs – that would be unheard of in our history,” Laughter wrote.

Laughter said Delta pilots are currently being paid for more hours than they are actually flying. In June pilots flew about 10 actual hours and it will be 15.5 in July.

A spokesman for the Air Line Pilots Association said the union met with Delta on Thursday and suggested the airline was choosing “to negotiate in public directly with our pilots,” which it said that could impede the process.

Laughter noted “forward bookings have stalled as infection rates in parts of the U.S. spike and anxiety over the virus rises. Demand is still down about 80%, and we don’t expect to see measurable improvement until the U.S. infection rates fall again.”

The memo was reported earlier by CNBC.

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Delta will warn pilots about possible furloughs, offers early retirement By Reuters


© Reuters. FILE PHOTO: Delta Air Lines passenger planes parked in Birmingham

By Maria Ponnezhath

(Reuters) – Delta Air Lines (N:) said late on Friday it will soon send warning notices to about 2,500 pilots regarding possible furloughs at the airline, as the industry takes a huge blow after the coronavirus pandemic slashed air travel demand.

“In an effort to best prepare our pilots should furloughs be needed, Delta will send required notices to approximately 2,500 pilots,” a Delta spokesperson said in a statement, adding that the so-called ‘WARN’ notices will be sent next week.

Delta also reached a tentative agreement with the Air Line Pilots Association (ALPA) labor union on a pilot-specific voluntary early retirement option.

The early-out plan is a meaningful step as the carrier is working to manage the impact of the pandemic and align staffing with expected flying demand, the statement said.

ALPA did not immediately respond a request for comment after office hours.

A day ago, Delta Chief Executive Ed Bastian had informed employees in an internal memo that the company is planning to add about 1,000 flights in August but not many more for the remainder of 2020.

“While it’s encouraging to see flights returning … we likely remain at least two years away from a return to normal,” Bastian said in the memo.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Airbus extends furloughs in UK, Spain in latest effort to tackle COVID-19 fallout By Reuters


© Reuters. FILE PHOTO: The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse

By Kanishka Singh

(Reuters) – European planemaker Airbus SE (PA:) said on Friday it is extending furlough programs for 5,300 of its employees in Spain and the United Kingdom in its latest effort to cope with the impact of the coronavirus outbreak.

“This will be effective from 20th May till 30th September and affects all Airbus Operations SL employees in Spain (with some exceptions), which means around 3,100 employees”, an Airbus spokesman told Reuters in an emailed statement

“Airbus Helicopters and Airbus DS employees in Spain are not impacted”, the spokesman said.

In the United Kingdom, the period of furlough for about 2,200 Airbus workers will start on July 20 and end on Aug. 9, the statement said.

“In France, all employees of the commercial aircraft division are in some way affected”, the spokesman said. He added about 29,500 employees in France were working on average about 30% shorter weeks.

Sources told Reuters in May that Europe’s largest aerospace group was exploring restructuring plans involving the possibility of “deep” job cuts as it braced for a prolonged coronavirus crisis after furloughing thousands of workers.

The company had told senior staff it must be “resized” in plans to be set out around end-June. The coronavirus pandemic has led to a global airline crisis, with carriers and suppliers pleading for help.

Earlier this month, France unveiled what it described as a 15-billion-euro ($16.76 billion) support package for its aerospace industry, saying huge numbers of jobs were at stake amid a slump in air travel demand due to the coronavirus.

The total included 7 billion euros of aid already announced for Air France (PA:) and an acceleration of existing orders for Airbus tankers and other military kit, the French government said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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AMC Theatres furloughs CEO, corporate employees due to virus By Reuters


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© Reuters. The AMC Theatres in the Georgetown neighborhood is closed due to a global outbreak of coronavirus disease (COVID-19), in Washington

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LOS ANGELES (Reuters) – AMC Entertainment Holdings Inc (N:), the world’s largest theater operator, has placed its chief executive and all of its corporate employees on furlough to preserve cash during the coronavirus outbreak, a company spokesman said on Wednesday.

AMC’s 1,000 theaters around the world were closed last week to help prevent the novel coronavirus from spreading.

“This leaves AMC with no revenue, and substantial fixed costs that continue,” AMC spokesman Ryan Noonan said.

The furloughs apply to Chief Executive Adam Aron and other employees at the company’s headquarters in Leawood, Kansas. Some workers will see reduced hours and reduced pay, while others will be cut to no hours and no pay.

The step was “absolutely necessary to preserve cash and to ensure that AMC can reopen our doors once this health crisis has dissipated,” Noonan said.

Movie theaters have gone dark worldwide and some operators are worried they will not be able to reopen if the shutdown extends for months. The National Association of Theatre Owners has called on the U.S. Congress and the Trump administration to provide emergency relief.

AMC’s furloughs will extend for the “hopefully short period of time” that all of its theaters are closed, Noonan said. Employees will retain health benefits during that time.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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