American Airlines CEO Calls Out United For Illegally Reducing Employee Pay

by Gary Leff

May 06 2020

The point of shoveling out billions of dollars of airlines was to get airlines through the worst of the depression in travel so that workers all still had jobs, and to keep workers whole until then. That’s not how United Airlines is using the money, and American Airlines CEO Doug Parker calls them out for it.

United is likely correct on the law, Parker correct on the intention behind it. The way the CARES Act was drafted was sloppy, allowing United to take billions in government grants while reducing employee pay, pocketing more money to protect shareholders than the law intended. If airline’s had made clear how they’d behave after getting the bailout, it would never have passed.

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United Says They’ll Deny You Boarding If They Think You’ve Been Exposed to COVID, Or Refuse Testing

by Gary Leff

May 05 2020

They can deny you boarding if they merely suspect you have coronavirus, or if they want you to obtain a test showing you do not have the virus and you decline. What will lead them to suspect someone may have the ‘rona? It could be temperature checks. It could be data shared via an app or the government in the future. It could be information about known exposures, including on a prior flight.

Consider this part of the new normal that we’re figuring out – we do not know what is going to happen in practice but United is updating its rules to allow them to take action based on what sort of testing or screening occurs.

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A Tale Of Two American Airlines Companion Certificates: Barclays vs Citi

by Gary Leff

steward on plane
May 05 2020

Earlier in the day Citibank shared that the companion tickets earned from their American Airlines co-brand business card (after $30,000 spend in purchases each cardmembership year, at card renewal) that expire in 2020 will be extended to June 30, 2021.

Barclays has shared that their American Airlines companion tickets – offered as an initial bonus on new consumer cards, and earned from spend on their Red, Silver, and Business cards – will have their expiration extended as well.

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Marriott Hits Up Credit Card Partners For A Billion Dollars

by Gary Leff

bonvoy
May 05 2020

Marriott announced a deal for $920 million dollars with its co-brand credit card partners. In exchange for the cash Marriott has extended its co-brand deals with both partners.

These deals aren’t just good for the travel company, they’re good for consumers. But there’s an interesting reason we’re seeing hotel chains access their loyalty programs for cash before airlines do the same.

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United Airlines Imposing Unpaid Time Off, Planning For Huge Layoffs With No Severance

by Gary Leff

man talking on camera
May 04 2020

Despite getting billions in federal aid precisely to ensure that employees do not see layoffs or a reduction in pay, United Airlines is reducing pay for non-union staff, including administrative help, by enforcing unpaid vacation time. They’re also planning to lay off at least 30% of this group October 1, as soon as CARES Act restrictions lift – and they’ve adopted a new policy that says any of these employees laid off will receive zero severance.

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