THREAD: The United Airlines projected furlough numbers are a gut punch, but they are also the most honest assessment we've seen on the state of the industry - and our entire economy. 1/8
The #COVID19 crisis dwarfs all others in aviation history and there's no end in sight. Demand was just barely climbing back to 20 percent of last year's levels and even those minimal gains evaporated over the last week due to surging COVID-19 cases across the country. 2/8
The CARES Act Payroll Support Program (PSP) has supported millions of jobs over the last 3 months, kept paychecks flowing, healthcare in place, and gave us the ability to spend in the larger economy. It also maintained essential service to all of our communities. 3/8
The PSP was adopted w/ overwhelming bipartisan support as the most efficient, direct jobs program that also reigned in the worst corporate behavior by banning stock buybacks, dividends, & capping executive compensation. It got the most critique too because it is transparent. 4/8
But the funding to maintain these aviation jobs and the requirement for airlines to keep people on payroll ends this fall without an extension locked in before the summer Congressional recess. 5/8
WARN notices do not predetermine actual involuntary furlough numbers. We will continue press for voluntary options that can help mitigate involuntary furloughs. But these projected furlough numbers are larger than the total size of most mainline airlines a decade ago. 6/
Congress must extend the PSP in order to avoid hundreds of thousands of layoffs from an industry that normally drives economic activity for every other sector & supports more than 11 M jobs. Failing to do so will have a ripple effect across the economy. 7/8
The PSP is an historic workers first program: effective at saving jobs, transparent in application, & so far the most responsible use of public money in this crisis. We need to extend it and expand it for all working people and create the jobs necessary to fight the virus. 8/8
