United warns of staffing cutbacks
Advertiser Staff and News Services
CHICAGO — United Airlines told its employees to expect layoffs as early as today as it and other carriers prepared to reduce flight schedules and staffing as a result of the U.S. war with Iraq.
While no cutbacks were announced publicly yesterday, the Machinists' union said more than 1,100 mechanics at United's Indianapolis maintenance center were being placed on temporary leave. In addition, the Association of Flight Attendants said the airline plans to place about 2,300 more flight attendants on unpaid leave April 1.
United spokesman Chris Brathwaite declined to confirm the cutbacks. But in a message to employees yesterday, the carrier said the continued decline in passenger bookings related to the Iraq war is forcing United to reduce its schedule and workforce.
United Airlines does not plan to reduce flights to Hawai'i and has no immediate plans to cut jobs in Hawai'i, said Mike Navares, United's general manager of airport operations in Honolulu.
War-related cutbacks elsewhere are almost certain. United CEO Glenn Tilton said last week the bankrupt airline expected to trim its schedule by an initial 10 percent to 12 percent and reduce its workforce accordingly in the event of war.
"With the initiation of military action between the United States and Iraq, United is taking action to reduce its schedule and workforce systemwide," the company said in its taped message to employees. "Affected employees could be notified and placed on authorized no-pay status as early as tomorrow (today)."
Scotty Ford, president of Machinists' District 141-M representing 10,300 mechanics and related employees, said in a posting on the union Web site that United intends to put 468 Indianapolis mechanics on leave effective Tuesday. All remaining mechanics there would be put on temporary leave as of April 15.
There were early signs that United Airlines might suffer more than other carriers as the war prompts companies to cut back on travel.
United, Hawai'i's largest Mainland carrier, warned earlier this week that there is no guarantee of its survival. Now a survey, released since the war began, indicates businesses are cutting back on international travel, an area of traditional strength for United.
Some analysts say the factors battering the airline industry may make it impossible for United to recover.
American Airlines, meanwhile, said yesterday it needs to cut permanent annual costs by $4 billion to survive and has identified $2 billion internally.
The airline has asked its three unions for $1.8 billion in concessions.
Trying to improve morale during the toughest time in American Airlines' history, Chairman Don Carty told South Florida employees that he has no doubt the airline will survive as it creates a new model "that allows us to take the fight to the low-cost carriers."
Though he gave no assurances that American will not file for bankruptcy, Carty said the airline intends to remain the largest in the world, as it becomes "leaner, smarter and stronger." On Wednesday, Continental Airlines announced it would cut its workforce by about 1,200 through the rest of the year to save $500 million.
