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American Airlines plans to apply for coronavirus aid, offers partial pay for employee leave

American Airlines Monday said it will apply for government aid to soften the blow from a record drop in travel demand. The carrier is also offering partial pay to entice workers off its payroll. The airline said it expects about $12b of the $50b set aside for airlines in a sweeping coronavirus relief bill Congress passed last week. The aid includes $25b in grants for passenger airlines in exchange for not furloughing or cutting the pay rates of their employees through Sept. 30. The other half is in loans. American’s statement that it will apply for the funding is the clearest yet from airlines on the coronavirus aid as executives parse through the details. “We intend to apply for these funds and are confident that, along with our relatively high available cash position, they will allow us to fly through even the worst of potential future scenarios,” American’s CEO Doug Parker and the airline’s president, Robert Isom, said in a note to employees. American is also making voluntary leaves of absence and early retirements partially paid, an attempt to get more workers to sign up. American and other carriers had been offering voluntary unpaid leave to try to lower costs.<br/>