United and the union that represents its pilots have reached an agreement in principle that could avoid the furlough of close to 3,000 pilots.
, including 2,850 pilots, starting Oct. 1 when the terms of federal aid that prohibited job cuts until then expires. "Any potential mitigation must achieve our goals: stop planned furloughs, stop displacements, and include long-term permanent gains for any short-term, fully recoverable modifications," said Todd Insler, chairman of the United Airlines chapter of the Air Line Pilots Association told union members in a note Monday, which was reviewed by CNBC.
The union and the airline didn't provide details of the agreement and how it would reduce costs. It wasn't immediately clear how long, if passed, the plan would avoid furloughs. The agreement needs to be approved by union members and leaders. The airline said in a statement that it continues "to try and reduce the number of involuntary furloughs at United and are happy we were able to reach an agreement in principle with ALPA that can potentially save pilot jobs." The union and the airline didn't provide details of the agreement. It was not clear how the airline would save on costs or how long, if passed, the plan would avoid furloughs.
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