AirTran Airways has announced that it plans to shed 480 jobs -- 180 pilot and 300 flight attendant positions -- by Sept. 6 as part of program to reduce its costs, which have been soaring because of escalating fuel prices.
AirTran is offering employees who have at least five years of service a voluntary "early exit" program under which they will be entitled to certain medical benefits and flight privileges for up to a year, according to published reports.
The Orlando-based low fare carrier, a subsidiary of AirTran Holdings Inc. (NYSE: AAI), expects to save about $16 million with the cuts. It currently employs about 8,900 people, including more than 1,400 pilots and 2,000 flight attendants.
The airline had projected to grow some 10 percent this year, but because of high fuel costs it is reducing capacity by 5 percent -- a 15-point swing. The job cuts mirror the capacity cuts.
Last week, AirTran reported plans to slash employee pay by 5 to 15 percent in an attempt to save about $30 million.
The airline had a net loss of $34.8 million on $596.4 million in revenue in the first quarter, compared with net income of $2.2 million on $504.1 million in revenue in the first quarter of 2007.
AirTran has three daily flights out of Wichita's Mid-Continent Airport and is subsidized by the state of Kansas.
No comments:
Post a Comment