A320 EOW
Aug 21, 02, 8:47 am
http://www.post-gazette.com/businessnews/20020821usair0821bnp4.asp
US Airways to trim fleet, lay off pilots
Wednesday, August 21, 2002
By Frank Reeves, Post-Gazette Staff Writer
US Airways plans to reduce its mainline jet service 13 percent by the end of the year and reduce the fleet by 33 planes -- 10 percent -- to 278.
The reductions, part of the bankrupt carrier's restructuring, will result in 250 pilot layoffs in November, on top of 1,070 already been furloughed, company and union officials said. The nation's seventh-largest carrier also indicated there could be another 250 pilot furloughs early next year.
Chief Executive Officer David Siegel, who outlined the plans to employees late yesterday, said that in order to return to profitability, the airline must streamline by operating fewer aircraft and eliminating unprofitable flights -- a move that will shrink the number of its daily mainline flights to 1,350 at year's end from 1,550 now.
The Arlington, Va.-based carrier is struggling to reshape itself into profitability by replacing mainline jet service with commuter jet operations to better match airline capacity to passenger demand. US Airways has said it must increase the number of smaller, regional jets it deploys in order to stave off competition from such low-cost, low-fare carriers as Southwest and JetBlue.
Siegel said he expected that jobs lost in the mainline operations would be picked up by the expanded regional jet operations, though pilots and others who shift from mainline to commuter jet service can expect to be paid less. For example, the salaries of pilots who would be hired by its new MidAtlantic Airways commuter subsidiary, where the bulk of its new RJs will be used, will be based on the average pay for pilots at express carriers for Continental, Delta and American airlines.
Pittsburgh International Airport will serve as the headquarters for MidAtlantic, a move that's expected to keep US Airways employment stable at about 10,000, down from almost 12,000 before post-Sept. 11 cutbacks. Furloughed mainline pilots would have first crack at pilot jobs created at Mid-Atlantic, which will fly under the US Airways Express banner. It's not yet clear when those operations will begin.
US Airways did not provide any details yesterday on which flights would be eliminated as a result of the mainline fleet's pending downsizing or what its impact may be on its three hub cities -- Pittsburgh, Philadelphia and Charlotte, N.C.
Roy Freundlich, spokesman for US Airways' unionized pilots, said he was disappointed that the carrier had decided to trim jet service but noted, "We gave them the flexibility to do it." US Airways has asked for $1 billion in annual labor-cost reductions from its employees, including $465 million agreed to by the Air Line Pilots Association, as well as for more liberal work rules. Under its agreement with the pilots, the airline can't shrink its mainline fleet to fewer than 245 aircraft.
US Airways' plan follows what is quickly becoming an industry pattern.
Last week, American Airlines, the world's largest, said it was cutting 7,000 jobs and reducing capacity 9 percent by November to save $1.1 billion a year. And United Airlines, the nation's No. 2 carrier, has warned that it might file for Chapter 11 bankruptcy protection if it can't reach voluntary agreements with its employees and lessors to save costs.
US Airways to trim fleet, lay off pilots
Wednesday, August 21, 2002
By Frank Reeves, Post-Gazette Staff Writer
US Airways plans to reduce its mainline jet service 13 percent by the end of the year and reduce the fleet by 33 planes -- 10 percent -- to 278.
The reductions, part of the bankrupt carrier's restructuring, will result in 250 pilot layoffs in November, on top of 1,070 already been furloughed, company and union officials said. The nation's seventh-largest carrier also indicated there could be another 250 pilot furloughs early next year.
Chief Executive Officer David Siegel, who outlined the plans to employees late yesterday, said that in order to return to profitability, the airline must streamline by operating fewer aircraft and eliminating unprofitable flights -- a move that will shrink the number of its daily mainline flights to 1,350 at year's end from 1,550 now.
The Arlington, Va.-based carrier is struggling to reshape itself into profitability by replacing mainline jet service with commuter jet operations to better match airline capacity to passenger demand. US Airways has said it must increase the number of smaller, regional jets it deploys in order to stave off competition from such low-cost, low-fare carriers as Southwest and JetBlue.
Siegel said he expected that jobs lost in the mainline operations would be picked up by the expanded regional jet operations, though pilots and others who shift from mainline to commuter jet service can expect to be paid less. For example, the salaries of pilots who would be hired by its new MidAtlantic Airways commuter subsidiary, where the bulk of its new RJs will be used, will be based on the average pay for pilots at express carriers for Continental, Delta and American airlines.
Pittsburgh International Airport will serve as the headquarters for MidAtlantic, a move that's expected to keep US Airways employment stable at about 10,000, down from almost 12,000 before post-Sept. 11 cutbacks. Furloughed mainline pilots would have first crack at pilot jobs created at Mid-Atlantic, which will fly under the US Airways Express banner. It's not yet clear when those operations will begin.
US Airways did not provide any details yesterday on which flights would be eliminated as a result of the mainline fleet's pending downsizing or what its impact may be on its three hub cities -- Pittsburgh, Philadelphia and Charlotte, N.C.
Roy Freundlich, spokesman for US Airways' unionized pilots, said he was disappointed that the carrier had decided to trim jet service but noted, "We gave them the flexibility to do it." US Airways has asked for $1 billion in annual labor-cost reductions from its employees, including $465 million agreed to by the Air Line Pilots Association, as well as for more liberal work rules. Under its agreement with the pilots, the airline can't shrink its mainline fleet to fewer than 245 aircraft.
US Airways' plan follows what is quickly becoming an industry pattern.
Last week, American Airlines, the world's largest, said it was cutting 7,000 jobs and reducing capacity 9 percent by November to save $1.1 billion a year. And United Airlines, the nation's No. 2 carrier, has warned that it might file for Chapter 11 bankruptcy protection if it can't reach voluntary agreements with its employees and lessors to save costs.