WEDNESDAY, June 25, 2008, 10:25 a.m.
By Tom Daykin</B>
Midwest cuts to be deeper, pilots say
Midwest Airlines Inc.'s pending route and job cuts will likely be even deeper than initially feared, the head of Midwest's pilots union said today.
Midwest executives are planning to reduce the financially troubled airline's number of jets by nearly half, said Jay Schnedorf, chairman of the Air Line Pilots Association's Midwest chapter. As a result, layoffs at Oak Creek-based Midwest will amount to hundreds of jobs, he said.
Midwest announced last week it will phase out a dozen MD-80 jets used for charter service as well as regular passenger service to leisure destinations and West Coast cities. That would leave Midwest with 25 Boeing 717 jets, which are much more fuel-efficient than the MD-80 jets.
Schnedorf said today that he's received accounts from flight attendants that Midwest executives, in employee meetings, say the company also plans to phase out five of the 25 Boeing 717s. That would reduce the airline's fleet by 46%.
Meanwhile, individual pilots have been told by some managers that the airline's restructuring will likely leave it with around 200 pilots, Schnedorf said. Midwest now has 400 pilots, although that number will be down to around 365 by July, due to a previously announced work force reduction.
That plan to reduce the fleet size by nearly half will bring job cuts for other employees, Schnedorf said, including flight attendants, ground crews and mechanics.
Meanwhile, Midwest management, through an initial presentation to the pilots union, is seeking pay cuts ranging from 45% to 65%, Schnedorf said. Those cuts are not acceptable, he said, and the pilots union continues to seek additional financial data from management in order to respond to that presentation.
An official from the Association of Flight Attendants, the other union at Midwest, couldn't be immediately reached for comment.
Midwest spokesman Michael Brophy said the company continues to have discussions with the union leaders, but will not comment publicly on those talks.
"We have been transparent in communicating to our employees that there are sure to be reductions in work force and benefits through most parts of the organization, but that they will be fair and equitable," Brophy said, in a statement.
"Obviously, Chapter 11 is not our most desirable destination," Brophy said. "That's why we're working on this restructuring plan, so we can avoid that scenario."
Midwest Chairman and CEO Timothy Hoeksema says Midwest's financial troubles are largely caused by soaring oil prices, with the airline is paying nearly double for jet fuel compared with a year ago. Midwest is owned by investment group TPG Capital and Northwest Airlines Corp.
