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As politicians discuss giving airline-specific aid, remember US top airlines got a huge windfall under the 2017 Tax Cuts & Jobs Act. They then spent $45billion on share buybacks. Not jobs. When COVID hit, they got another $50 billion. And still, layoffs. https://publicintegrity.org/inequality-poverty-opportunity/the-heist/better-off-american-airlines-tax-cuts/
After their tax windfall, American gave employees a one-time $1000 bonus. @TWUIVP told reporter @checaballero "while we were getting this little baby infusion of money ..corporate America was reaping rewards that are our hundreds upon hundreds of millions"
Attendant @DeborahVolpe2: "All we got was $1k. So now you’re sounding ungrateful for $1k and you’re not ungrateful, but...Show us how you’re putting it back into our company and back for us, your frontline employees." https://podcasts.apple.com/us/podcast/better-off/id1530138961?i=1000493997177
Between 2014 and 2019, American Airlines spent nearly $12 billion on stock buybacks. Since he became CEO of American Airlines in 2013 Doug Parker has taken home a total of $150 million from selling his American shares. https://www.dallasnews.com/business/2019/05/02/how-does-ceo-pay-at-the-world-s-largest-airline-compare-to-employees-pay/
American Airlines did invest in new airplanes and buildings—although that was paid for with $24 billion in new debt. All this meant the airline was not saving up for the unexpected, when the pandemic hit, said #TheHeist host & @columbiajourn prof @sherships
“It did not help American that they spent billions on buybacks. It did not help their employees..They didn't pay off new airplanes, they didn't contribute a lot of cash to this pension that they could have.”— analyst Arne Alsin. https://publicintegrity.org/inequality-poverty-opportunity/the-heist/better-off-transcript/
In a statement, American Airlines said, "No amount of a rainy day fund would have prepared American or any other airline for COVID-19 and the devastating impact it has had on demand for air travel.”
Not true, said Nobel Prize-economist @JosephEStiglitz. "Corporations were in a position to use that revenue to create buffers. But instead, the money went right out the door, leaving taxpayers now to pick up the tab for their lack of foresight." #TheHeist
In September American Airlines announced it would start furloughing 19,000 employees. https://www.nbcdfw.com/news/business/airline-industry-facing-massive-layoffs-fort-worth-based-american-airlines-set-to-cut-19000-jobs/2452851/
