Tue, Jul 08, 2008
Follows Announcement Of Pay Cuts
Calling it a "necessary step" in current hard times, this week
AirTran Airways followed suit with most of its competitors in
announcing a culling of its pilot and flight attendant ranks.
The Atlanta Journal-Constitution reports the Orlando-based
low-cost carrier will cut 300 FAs and 180 pilots from its
workforce, through a combination of furloughs and voluntary exit
packages.
The workforce reductions come one month after AirTran announced
it would defer deliveries on 18 Boeing 737s the carrier had planned
to add to its fleet over the next three years. Last week, AirTran
said it planned to cut employee pay across the board anywhere from
five to 15 percent, though the airline must negotiate with its
unionized workforce on acceptable terms.
"It's a necessary step that's part of adapting to a more
difficult economic environment," said Kevin Healy, AirTran's senior
vice president of marketing and planning. "It is largely driven by
fuel."
AirTran hopes most of the reductions will come through voluntary
retirements. The airline, which has its hub in Atlanta, has offered
a voluntary exit program to all employees with at least five years
at the airline, except for directors and officers. The package
includes continued health benefits and travel vouchers for
qualified workers who opt by the end of July to leave the
airline.
If not enough workers agree to leave voluntarily, however,
furloughs would start coming in September.
AirTran currently has about 8,900 employees, including roughly
2,000 flight attendants and 1,450 pilots. The company expects early
retirements and employee attrition to "reduce or largely eliminate
the need" for layoffs, Healy said.
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