At least 27,000 jobs have been saved by the US government with the offer of a third round of governmental support — of $19 trillion — to American and United Airlines.
This relief package is part of the American Rescue Plan, which includes payroll assistance worth $14 billion.
With this aid, hope has been restored to about 13,000 employees of American Airlines who would otherwise have been furloughed. These employees had been issued the Worker Adjustment and Retraining Notification (WARN) notice in February.
At United Airlines, all the frontline employees will now receive their salaries and healthcare with this fresh aid.
When the rescue plan bill is officially approved by the US President, it will be implemented as a law and all US-based airlines will be able to avail the payroll assistance programme till September 2021.
Two months ago, United airlines had revealed that almost 14,000 employees may lose their jobs if the relief package was discontinued. The same fear gripped other US airlines, including Delta and Southwest, that have been struggling amidst the dropping demand for air travel.
This is the third time that relief is being offered as part of the Payroll Support Program, which was initially offered as part of the Coronavirus Aid, Relief, And Economic Security (CARES) Act of April 2020.