US Airways to end 1,800 maintenance jobs
DALLAS --US Airways Group Inc., which is cutting operating costs to emerge from bankruptcy, will eliminate 1,800 maintenance jobs by closing or scaling back some facilities and hiring outside companies to handle the work.
The airline notified workers yesterday of the decisions. The changes, to be completed by the end of March, don't mean 1,800 workers will lose their jobs, the carrier said in a recorded message to employees. That number won't be determined until the company has accounted for retirements and attrition.
US Airways, based in Arlington, Va., is reducing labor costs by $1.1 billion a year under agreements with union and nonunion workers to cut pay, benefits, and jobs. The airline, which filed for Chapter 11 protection Sept. 12, said it must reduce annual spending by $1.5 billion to exit bankruptcy and compete with low-cost carriers such as Southwest Airlines.
The revelation to employees came one day after US Airways reported a net loss of $611 million, or $11.19 a share, in 2004 as competition pushed fares lower and fuel prices increased. Its cost to fly each seat a mile fell 6.3 percent to 10.96 cents in the fourth quarter. Southwest's comparable cost was 7.59 cents.
The airline, the seventh-largest US carrier, is consolidating or closing some maintenance facilities in Pittsburgh, Charlotte, N.C., and Winston-Salem, N.C. Jobs include mechanics, aircraft cleaners, and stock clerks.
A breakdown of numbers by cities wasn't immediately available from US Airways.
Also yesterday, the Pension Benefit Guarantee Corp. took over retirement plans of 51,000 current and former US Airways mechanics, flight attendants, customer service agents, and other workers.
