U.S. Airways Cutting 600 Airport Jobs
Monday, July 27th, 2009
In the wake of the recession and turbulent economic climate, US Airways is planning to cut 600 ground jobs at some of its major airport hubs. The struggling airline recently announced it will be laying off 340 customer service agents around the country, and will close the Las Vegas US Airways Club entirely. Customer service agents will no longer be employed by US Airways as of September 14, 2009, and the Las Vegas US Airways Club will officially close on September 13, 2009.The airline is focusing its efforts on efficiency and reducing labor costs in as many ways as possible. As demand for its services continue to decline, layoffs and a restructuring of roles have become a viable strategy for saving on labor costs.
Other changes include the closing of its walk-up ticket counter at the Tempe, Arizona headquarters, and shifting outside contractors for ramp service work at nine airports around October 5, according to a recent report by the Associated Press. US Airways has already cut flight schedules and added fees to help recover some of its losses. The airline has also asked approximately 400 flight attendants to take a voluntary furlough in order to avoid being laid off.
Thomas Reuters has estimated that the company will be reporting a loss of nearly $88.5 million by the end of July 2009. The airline has been struggling for several years as demand for business and leisure travel declined after the September 11 attacks, and as stiffer competition erupted throughout the entire idustry altogether.
For now, this means layoffs in the customer service department and a shifting of responsibilities and roles in other areas. Airports that will be affected by the ramp service organization are: Wichita, Kansas; Austin and El Paso, Texas; Burbank and Long Beach, California; Colorado Springs, Colorado; Milwaukee, Wisconsin; Omaha, Nebraska; and Boise, Idaho.
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