US extends 3rd round of support for airlines, at least 27,000 jobs saved for now

As a result of the fresh financial aid, American airlines has cancelled its plan to furlough its 13,000 employees, sending a wave of hope among its workers.

"For our 13,000 colleagues who received Worker Adjustment and Retraining Notification (WARN) notices last month, those are happily canceled- you can tear them up! We will also soon share details about the status of voluntary leave and early out applications, once all application windows close," American Airlines wrote to its team members on March 10.

Once the rescue plan bill gets President Joe Biden's signature, it will become a law and US-based airlines will be able to benefit from the payroll assistance program through September 2021.

While the news is a bright spot for the airline, American airlines also cautioned that it will need more time until vaccines are out in full force for travel demand to significantly improve.

Simultaneously, United Airlines CEO Scott Kirby also wrote in a LinkedIn post that its frontline workers will now receive paychecks and healthcare through September.

"By extending PSP, our teams will be able to remain current in their training and ready to match expected future demand," Kirby wrote.

In January 2021, United airlines had said that the jobs of nearly 14,000 employment were at risk because the second round of financial aid package was expiring in spring.

The move is also expected to have a positive impact on the employees of other major airlines of the US such as Delta and Southwest.

Back home in India, airlines have often sought direct financial aid to help the sector tide through the crisis. The inclusion of aviation turbine fuel under the ambit of Goods and Services Tax (GST) regime has also been a long-pending demand of domestic airlines.

The Indian government, however, has capped airfares for all domestic sectors and permitted airlines to operate with 80 percent capacity, with an opinion that these steps will help the Indian aviation sector tide through the pandemic.