AirTran lays off 169 pilots
Most of airline’s job cuts will be in Atlanta
By KELLY YAMANOUCHI
The Atlanta Journal-Constitution
Friday, August 22, 2008
AirTran Airways said it notified 169 pilots this week that they will be furloughed as the airline shrinks its flight schedule and cuts costs.
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AirTran, which is based in Orlando and has its largest hub in Atlanta, has about 8,900 employees. The carrier is cutting its work force as it shrinks its flight schedule by 7 percent to 8 percent during the last four months of the year.
AirTran had earlier said it would need to cut about 300 flight attendants and 180 pilots to reduce annual costs by about $16 million. Although the company generated enough requests for leaves to avoid furloughing flight attendants, only about five pilots decided to take leaves.
Most of the job cuts will be in Atlanta because all of AirTran’s 1,450 pilots are based here.
“The company is very lean, and we have not been backfilling when people leave in certain areas,” Hutcheson said. “We are continuing to do everything in our power to keep our costs as low as possible.”
As AirTran tries to cut costs to cope with high fuel prices, it also has been trying to negotiate with employees to cut their pay by 5 percent to 15 percent, but mechanics and flight dispatchers already have voted against the cuts.
Separately, Raymond James and Associates downgraded AirTran’s stock on Friday to market perform from outperform, citing fuel costs and a lack of pricing power.
In a report, Raymond James analyst Jim Parker said he anticipates AirTran will have “substantial losses and cash burn of over $100 million” in the second half of this year, based on current fuel prices.
Parker also said Delta’s flight capacity versus AirTran is scheduled to increase 3 percent in the fourth quarter compared with a year earlier. “Going forward, AirTran may seek to avoid head-to-head competition in Atlanta and pursue more point-to-point flying to Florida,” according to the report. AirTran has said its Atlanta hub will be getting smaller.
Most of airline’s job cuts will be in Atlanta
By KELLY YAMANOUCHI
The Atlanta Journal-Constitution
Friday, August 22, 2008
AirTran Airways said it notified 169 pilots this week that they will be furloughed as the airline shrinks its flight schedule and cuts costs.
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DELTA NEWS
Latest Headlines:
- The pilots will be furloughed effective Sept. 3. They will have rights to be called back to work, according to AirTran spokesman Tad Hutcheson.
AirTran, which is based in Orlando and has its largest hub in Atlanta, has about 8,900 employees. The carrier is cutting its work force as it shrinks its flight schedule by 7 percent to 8 percent during the last four months of the year.
AirTran had earlier said it would need to cut about 300 flight attendants and 180 pilots to reduce annual costs by about $16 million. Although the company generated enough requests for leaves to avoid furloughing flight attendants, only about five pilots decided to take leaves.
Most of the job cuts will be in Atlanta because all of AirTran’s 1,450 pilots are based here.
“The company is very lean, and we have not been backfilling when people leave in certain areas,” Hutcheson said. “We are continuing to do everything in our power to keep our costs as low as possible.”
As AirTran tries to cut costs to cope with high fuel prices, it also has been trying to negotiate with employees to cut their pay by 5 percent to 15 percent, but mechanics and flight dispatchers already have voted against the cuts.
Separately, Raymond James and Associates downgraded AirTran’s stock on Friday to market perform from outperform, citing fuel costs and a lack of pricing power.
In a report, Raymond James analyst Jim Parker said he anticipates AirTran will have “substantial losses and cash burn of over $100 million” in the second half of this year, based on current fuel prices.
Parker also said Delta’s flight capacity versus AirTran is scheduled to increase 3 percent in the fourth quarter compared with a year earlier. “Going forward, AirTran may seek to avoid head-to-head competition in Atlanta and pursue more point-to-point flying to Florida,” according to the report. AirTran has said its Atlanta hub will be getting smaller.