The September 11th attack
Layoffs run deep locally
| • | State unemployment filings may be at record levels |
By Andrew Gomes
Advertiser Staff Writer
Hawai'i companies announced nearly 600 layoffs and furloughs yesterday as they struggle to cope with the sharp downturn in the state's tourism industry since the Sept. 11 terrorist attacks in New York and Washington.
Hawaiian Airlines, the state's largest airline, said it will cut 430 employees, or 12 percent of its work force, in response to the drop in travel after the attacks; Atlantis Adventures added to the ranks of staff cuts, reducing its work force by 150 employees yesterday.
Hawaiian Airlines said its furloughs will take effect tomorrow, one day before the airline will cut its flight schedule by 20 percent.
"Furloughing employees is the last thing we want to do, but we've exhausted all other options," Paul Casey, Hawaiian's vice chairman and chief executive officer, said in a statement. "Under the circumstances, we have no choice but to take this step to protect the company's financial position going forward."
The cuts will affect employees across the board, from flight crews to mechanics, said Hawaiian spokesman Keoni Wagner.
"The future is pretty uncertain," Wagner said. "It will take a large rebound in order to be able to replace the amount of capacity and staffing that we've had to take out of our operation because of the downturn in tourism. We just don't know how soon that will happen."
Hawaiian joins a long list of major U.S. airlines that have cut routes and laid off a total of nearly 100,000 employees since the terrorist hijackings.
President Bush announced plans to beef up security at airports and on airplanes during a visit Thursday to Chicago's O'Hare International Airport. Congress passed a $15 billion package last week to assist the airlines during the crisis.
Hawaiian Airlines stands to get more than $24 million of that money. But Casey said despite the assistance, the furloughs were needed to help balance "substantially diminished revenues for the foreseeable future."
Hawaiian is providing eligible employees with full severance pay and continued health-care benefits, as well as job placement and counseling assistance, the company said.
Hawaiian earlier announced it is reducing weekly flights between the state and the U.S. Mainland to 98 from 120, while daily flights within the state will be reduced to 123 from 158. The schedule changes begin Monday.
The state's other locally based carrier, Aloha Airlines, said last week it was laying off 250 employees, or about 8 percent of its work force, and reducing flights by 26 percent.
For attraction operator Atlantis, its move yesterday to immediately trim 30 percent of its 500-member staff is essential to sustain operations, said Ronald Williams, Atlantis chief operating officer.
"Like all attractions statewide, we're feeling the impact of having far fewer visitors come to us from the U.S. Mainland and Japan markets," he said in a statement. "We have a great team of employees, so we're making these staff reductions with a very heavy heart."
Atlantis operates Atlantis Submarines, Sea Life Park, Waimea Valley Adventure Park and Navatek Cruises. It also markets the USS Missouri Memorial.
The cuts will reduce the company's operating costs by 35 percent, helping offset a 40 percent decline in business. Atlantis also is promoting reduced prices for kama'aina to sustain revenue.
The job cuts at Hawaiian and Atlantis will add to the more than 5,700 people who have applied for unemployment benefits in Hawai'i because of the slowdown in tourism following the Sept. 11 attacks.
