United makes new move to limit attendant furloughs in case Congress fails to act
United Airlines hopes to limit the number of flight attendants it has to furlough this fall, rolling out new voluntary measures amid uncertainty over the the potential for additional federal coronavirus pandemic aid.
The Chicago-based carrier is offering cabin crew members "no-activity lines" to mitigate furloughs, United senior vice president of inflight services John Slater said in a Saturday (Aug. 15) letter to staff viewed by TPG. Crew members that participate in the program would stay active in the airline's ranks but forgo flying on a month-for-month basis to cut costs during the worst crisis airlines have ever faced.
United's hope is to minimize the number of flight attendants who are furloughed if Congress fails to extend the payroll support program through March 2021. The carrier has warned 15,100 cabin crew members — the most of any of its employee groups — of possible furloughs on Oct 1.
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"By introducing this option, we remain more responsive and prepared for when customers feel comfortable returning to the skies, while also providing a large number of flight attendants with the ability to remain active, with active employee benefits," said Slater.
Delta Air Lines has offered its flight attendants similar voluntary measures to address what it views as overstaffing this winter.
The new mitigation measures follow a number of other voluntary options at Delta, United and other airlines. Earlier offers included extended unpaid leave and voluntary departure packages.
Related: United Airlines may furlough up to 36,000 staff as coronavirus forces drastic cuts
U.S. airlines are preparing for a tough fall and winter. Leisure travelers — who have so far driven the recovery in air travel — historically fly less after Labor Day, when they typically are replaced by business travelers. However, with most U.S. offices shuttered and companies forgoing travel amid fears of COVID-19, few expect any return in corporate travel until 2021 at the earliest.
United CEO Scott Kirby has warned that the airline anticipates flyer numbers to stall at around half of 2019 levels until there is a vaccine. And he does not expect a widely available vaccine until the end of 2021.
The new voluntary measures come as airlines and labor unions lobby Congress for a $25 billion extension of the payroll aid they received in March. The first round is set to expire on Sept. 30, potentially resulting in what Cowen analyst Helane Becker has called "terrible Thursday" on Oct. 1, which when tens-of-thousands of employees could be furloughed without an extension.
“Everyone is on pins and needles,” Association of Flight Attendants-CWA (AFA) director of employee assistance programs Heather Healy told CNBC on Aug. 16.
Related: Should Congress dole out more money for airline employees?
Many agree that extending the program would only delay airlines' need to shrink their workforces in light of far fewer air travelers. However, there remains a strong argument for maintaining employment — and paychecks — to lessen the impact of the economic recession brought on by the pandemic.
Slater told flight attendants that United is "completely aligned" with the AFA, which represents cabin crew at the airline, as well as the other unions pushing for the extension of the payroll support. He did not say how many furloughs could be avoided by flight attendants taking no-activity lines.
Other airlines are also ratcheting up pressure on Congress to extend the payroll program. American Airlines is considering ending service to as many as 30 smaller cities across the U.S. after air service protections under the program expire on Sept. 30.
Congress recessed on Aug. 13 without an agreement on a new coronavirus aid package. It is not scheduled to return until after Labor Day.
Related: Global air travel unlikely to recover until 2024 as COVID remains ‘issue’ in US, elsewhere
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Annual Fee
Recommended Credit
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
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- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.