American Airlines is planning to warn employees this week about potential furloughs, the latest carrier to prepare staff for job cuts as the coronavirus pandemic roils the airline business. The terms of $25B in federal coronavirus aid prohibit carriers from laying off workers or cutting their pay rates through Sept. 30, but weak demand is forcing airlines to cut costs. The Worker Adjustment and Retraining Notification Act requires employers to notify staff about possible layoffs or temporary furloughs generally 60 days in advance and it is not guaranteed that employees who receive these warnings will be laid off. American earlier this month said it is overstaffed by about 20,000 people for its reduced fall schedule. The notices will go out to front-line employees like pilots, flight attendants, mechanics and others, according to people familiar with the matter. American had more than 133,000 employees as of the end last year and laboUr accounted for more than a third of its operating expenses. “Our expectation is that WARN notices will be sent next week,” said Chip Long, American’s managing director of flight line operations, in a July 10 audio message for pilots, which was heard by CNBC. “Again, our hope is to very soon engage with APA and seriously explore every opportunity to take care of our pilots while taking care of our airline.”<br/>
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American Airlines said it had “reached out” to Senator Ted Cruz after he was photographed in an airport and on a plane not wearing a mask in spite of the carrier’s requirement that passengers cover their faces. The pictures of Cruz, a Texas Republican who is chairman of the Aviation and Space Subcommittee, were posted to Twitter by a staff member of the House Democratic campaign arm. American requires everyone except small children and those with disabilities to wear masks. People can remove them while eating or drinking. Passengers who refuse can be prevented from boarding or barred from later flights, according to the airline policy. “For the well-being of our customers and team members, we require face coverings to be worn onboard, and we expect our customers to comply with our policies when they choose to travel with us,” the airline said Monday evening. “As we do in all instances like these, we reviewed the details of the matter, and while our policy does not apply while eating or drinking, we have reached out to Senator Cruz to affirm the importance of this policy as part of our commitment to protecting the health and safety of the traveling public.” Cruz wears a mask “to help promote safety,” but took it off to drink, his office said in a statement. He put the mask back on afterward, according to the statement. “To help promote safety, Senator Cruz wears a mask when traveling, and practices social distancing where possible,” Cruz’s office said. “Consistent with airline policy, he temporarily removes the mask while eating or drinking.”<br/>
Shareholders of Cathay Pacific have overwhelmingly approved a government-led $5b bailout of the airline, but the carrier still faces strong headwinds with its operating base of Hong Kong facing a resurgence of COVID-19 cases. The package of equity and debt support worth HK$39b from the city's government and the carrier's major shareholders will provide a breather for the ailing airline. Cathay has been hit hard by the coronavirus pandemic on the heels of months of antigovernment protests in Hong Kong last year. But Monday's vote comes amid dimming short-term prospects for a relaxation of Hong Kong's controls on inbound travel or of the restrictions imposed by the governments of key destinations the airline flies to. "We expect a deeper revenue decline and net loss due to the halt in international flights and jet fuel hedging loss, despite several rounds of staff voluntary unpaid leave," said Kelvin Lau, aviation analyst at Daiwa Capital Markets in Hong Kong, in a note on Friday. Lau expects the airline to record a net loss of more than HK$8b for H1. The airline announced on Monday evening that all five resolutions presented by the company passed with more than 99% support from shareholders. The result was widely expected. <br/>
The Moroccan government plans a package of 6b dirhams ($624m) in aid to state carrier Royal Air Maroc (RAM) to help it get through the pandemic crisis, Finance Minister Mohamed Benchaaboun said Monday. The aid, part of a reviewed 2020 budget, includes a state-guaranteed loan of 2.5b dirhams, a finance ministry source said. RAM has struggled with $5m in daily losses caused by the pandemic and said recently it will cancel some routes between destinations, cut jobs and reduce fleet.<br/>