United Dumps SkyWest, 650 Denver Employees Displaced

As a result of United Airlines’ switch from SkyWest to Simplicity Ground, hundreds of Denver airport employees have lost their jobs.

Approximately 650 ramp and baggage handlers employed by SkyWest Airlines at Denver International Airport (DEN) are looking for a new employment options. On Friday, the airline announced to its DEN crew that after nine years, United Airlines had ended its contract for below-wing services, including ramp and baggage handling. The Denver Post reported the contract has transitioned to Simplicity Ground, a subsidiary of Menzies Aviation, and that ground responsibilities will be taken over on December 4, 2014.

In an email to employees, SkyWest COO Mike Thompson cited internal difficulties as the primary reason for losing the contract. “We were cost-competitive, but not able to produce the SkyWest-caliber product we would like to deliver,” Thompson wrote. “I know we have also been challenged with resources…but we’re hopeful that lasting improvements will be made as United solidifies their overall strategy on the ground at [DEN].”

Some believe that the difficulties in the relationship between United and SkyWest may have revolved around on-time reliability for baggage delivery. “As far as performance, it is about on-time and reliability,” SkyWest spokeswoman Marissa Snow told The Denver Post. “Summer is always challenging, but we made changes and improvements in recent months.”

The move by United is the second personnel shift at DEN in 2014. In July, The Denver Post reported that United had reclaimed 175 jobs from SkyWest, including gate agent and baggage handler positions.

Addressing the move from SkyWest to Simplicity Ground, United spokesman Luke Punzenberger told Denver ABC affiliate KGMH, “This change will allow us to run a more competitive operation. We are also pleased to bring in house baggage transfer positions for United Express flights at [DEN].”

Snow told KGMH that SkyWest was made aware of the decision, although she did not specify when. The current focus for the airline, according to Snow, is on the employees affected by the lost contract. “Our priority is the SkyWest people affected by the transition,” she said in a statement responding to the United’s decision. “They will be offered transfer opportunities or a one-year furlough, with additional opportunities currently being evaluated.”

The announcement comes nearly five months after SkyWest announced the operation of additional branded flights for United Express into DEN. At DEN alone, SkyWest manages a daily average of 152 departures across all partnerships. The airline currently operates an average of 1,028 daily departures as United and United Express across 155 cities. In her statement, Snow said that the ground handling operations change “does not affect United Express routes operated by SkyWest out of Denver.”

According to a report from USA Today, the reduction will eliminate SkyWest’s ground baggage handling operations at DEN, though the SkyWest corporate fact sheet still lists the airport as a hub, line station and crew domicile. The Denver Post reported that SkyWest will work with the Colorado Department of Labor and Employment to help displaced workers find new jobs.

[Photo: United Airlines]