United will remain half its size until vaccine is widely distributed: CEO

United expects to remain 45% of its pre-pandemic size for the next 15 months, CEO Scott Kirby said Tuesday. Absent the development and widespread distribution of a vaccine, which Kirby believes will not occur until the end of next year, the airline will not grow beyond its current size. Kirby, however, is confident that demand will spring back as soon as a vaccine is widely available. But will United be in a position to spring back? Airline employees — technicians, pilots, flight attendants, among others — are licensed and have specialized skills. If United and its peers are forced to furlough tens of thousands of such workers, as they say they will when payroll support through the CARES Act expires on September 30, they won’t be able to respond quickly to rapidly returning demand if their employees have taken other jobs or need to be re-trained. “Huge kudos to everyone in Washington,” Kirby said, referring to the bipartisan support for the $2.2tn CARES Act, which he credits with saving the economy when it became law in March. Airlines got $25b in federal aid to continue paying employees through September 30, but were forbidden from laying them off until October 1. If Congress doesn’t extend the payroll support program, United will lay off or furlough 16,000 employees when the program expires. This is in addition to the 25,000 employees that are on unpaid leaves of absence or other types of voluntary leave. “It could literally take years,” to return to a full bench of qualified employees, Kirby said. United has joined its peers on calling on Congress to extend the program through March of next year. “[Airlines] are an economic magnifier,” he said. “That is why it is so important that airlines get an extension." Story has more.<br/>