CHICAGO, Oct 3 (Reuters) - US Airways Group Inc (LCC.N: Quote, Profile, Research) will reduce the number of flights in January from its unprofitable Pittsburgh hub, a move that will cut about 450 airline jobs there, the airline said on Wednesday.
The No. 7 U.S. air carrier, formed by the 2005 merger of US Airways and America West, said it will trim the number of daily flights its operates in Pittsburgh to 22 from 31. The reduction will cut the number of daily regional flights by its affiliates to about 46 from 77.
"Unfortunately our ability to operate profitably from Pittsburgh has been sharply eroded over the past few years and the hub lost more than $40 million over the past 12 months alone," Chief Executive Doug Parker said in a statement.
US Airways said the move means that the carrier's mainline airport agents and ramp employees will take over customer service and ground-handling duties for 350 US Airways Express employees. The express employees, along with 100 mainline airport employees, will be offered other jobs at US Airways.
The carrier said the job cuts will not lead to lay-offs and that it will pay severance to those who choose to leave the company.
US Airways said it would meet with airport officials to discuss the number of gates it will need after the cuts. The airline currently leases 29 gates in Pittsburgh. US Airways did not offer an estimate on the costs associated with downsizing its Pittsburgh operations.
Shares of US Airways were up 74 cents at $29.39 on the New York Stock Exchange in midday trade.
The No. 7 U.S. air carrier, formed by the 2005 merger of US Airways and America West, said it will trim the number of daily flights its operates in Pittsburgh to 22 from 31. The reduction will cut the number of daily regional flights by its affiliates to about 46 from 77.
"Unfortunately our ability to operate profitably from Pittsburgh has been sharply eroded over the past few years and the hub lost more than $40 million over the past 12 months alone," Chief Executive Doug Parker said in a statement.
US Airways said the move means that the carrier's mainline airport agents and ramp employees will take over customer service and ground-handling duties for 350 US Airways Express employees. The express employees, along with 100 mainline airport employees, will be offered other jobs at US Airways.
The carrier said the job cuts will not lead to lay-offs and that it will pay severance to those who choose to leave the company.
US Airways said it would meet with airport officials to discuss the number of gates it will need after the cuts. The airline currently leases 29 gates in Pittsburgh. US Airways did not offer an estimate on the costs associated with downsizing its Pittsburgh operations.
Shares of US Airways were up 74 cents at $29.39 on the New York Stock Exchange in midday trade.