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US Airways to cut jobs, flights
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Published: October 29, 2009
US Airways announced plans Wednesday to cut 1,000 jobs nationwide and trim flights, part of a plan to save money and focus on the performance of its biggest hubs, including Charlotte.
The changes include dropping nearly half of its flights to Las Vegas, ending service between its Philadelphia hub and five European cities, canceling plans to fly to Beijing and closing crew bases in Boston, New York and Las Vegas.
Charlotte fliers should not see any changes to flights out of Charlotte, said spokeswoman Michelle Mohr. She said it's too soon to tell if any job cuts could happen here.
Because the jobs cut involve union workers, the reductions will likely take place through seniority and happen around the country, including in Charlotte. Nearly 6,000 US Airways workers are based in Charlotte, the airline's largest hub, with 543 daily flights to 121 nonstop destinations.
"We remain deeply committed to the community and citizens of Charlotte and the surrounding regions, and look forward to identifying continued opportunities to bring flights from Charlotte to other regions of the world," CEO Doug Parker said in a statement.
The airline reaffirmed plans to start flights from Charlotte to Rio de Janeiro (beginning Dec. 15); Honolulu (Dec. 17); and Sao Paulo, Brazil (next year, pending approval).
The job losses, about 3 percent of the workforce, will come in 2010. The carrier cut at least 1,300 jobs among pilots, management and others in 2008.
Parker said he made the pullbacks to focus on the airline's hubs in Philadelphia, Phoenix and Charlotte, and at its base at Washington's Reagan National Airport. By 2010, 99 percent of US Airways' capacity will be at the three hubs, Washington, New York and Boston, up from 93 percent now.
"These are painful but necessary cuts if the company is going to have a chance to return to profitability," said Douglas Runte, managing director of Piper Jaffray & Co. in New York. Its competitive position remains "exceptionally challenging," said Runte. Bloomberg News contributed
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