Airline Cutbacks

While the airline industry slows down, and fuel costs keep planes grounded, AirTran, the Orlando based low-fare airline is cutting some 480 jobs, effective September 6th. By eliminating 300 attendant jobs and 180 pilot positions, out of their 8,900 total employees, AirTran, is looking to save nearly $16 million in costs for the year. The company is offering a voluntary exit package for employees with over 5 years experience, which is expected to come out of the Atlanta area, where most of the pilots and flight crews are based. Also, the airline is negotiating a potential 5-15% employee pay cut for the next 6 months. AirTran, who predicted a 10% flight growth for 2008, will also move to reduce capacity by 5% for the year. Jet fuel costs for 2008, have risen 92% from last year, and continue to punish the industry. In Colorado, Denver International Airport’s 2 main airlines are looking to cut jobs there. United Airlines has notified the state of 150 customer service reps and ramp servicemen positions to be eliminated. Frontier Airlines is set to lay off 456 workers in Colorado as well. Frontier, who filed for Chapter 11 Bankruptcy Protection in April, is expecting more layoffs to come in waves, again in September and October. In a time that is projected to be the worst for the industry since the 9/11 attacks of 2001. Airlines are being forced to shrink costs, increase rates, ground planes, and put their employees out of work. http://www.EmploymentCrossing.com

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Google Video | July 10, 2008

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