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Posted on Wed, Dec. 04, 2002
United to lay off 352 pilots
The airline also faces fines for using a duct-type tape to patch holes in planes' wings
By Dave Carpenter
ASSOCIATED PRESS
CHICAGO - United Airlines announced plans Tuesday to lay off another 352 pilots over the next two months as part of its plan to decrease its flying schedule next year.
The company said it will cut 220 pilots' jobs Jan. 6 and another 132 on Feb. 7, reducing its current total of 8,600 pilots by an additional 4 percent.
The actions will increase the number of pilots laid off to 1,196 from cost-saving measures the carrier announced last month, and 9,000 employees in all. United currently has about 83,000 employees.
"This is a very difficult announcement to make because of the impact it will have on our employees and their families," said Steve Forte, United's senior vice president for flight operations.
Also Tuesday, United said it will eliminate 8 management positions and reduce pay for remaining executives to save $60 million as the world's second-biggest carrier seeks to avoid a bankruptcy filing.
United will trim the number of officers to 36 from 44, said United spokesman Chris Brathwaite. Those remaining will have their annual compensation cut by an average of 11 percent over 51/2 years, the company said.
In addition, United may be fined $805,000 because workers used tape to temporarily fix holes in the wing panels of three Boeing Co. 757 jets.
The airline made the repairs last March after inspections found holes, the biggest measuring 2.6 inches in diameter, on wing panels that extend to slow the planes during landings, the Federal Aviation Administration said.
The agency said it prohibits the use of tape for those repairs because of the size or location of the holes. The regulator only allows the use of the tape, similar to duct tape, for certain temporary repairs. The planes made 193 flights before United permanently fixed the holes, the FAA said.
"We're going to fight" the proposed fine, said Joe Hopkins, a spokesman for Chicago-based United. The repair to a minor part didn't harm safety or place passengers and crews at risk, he said.
The announcement of pilot layoffs comes with United awaiting two crucial developments this week that will determine whether it is forced to file for bankruptcy court protection from its hefty debts.
On Thursday, its mechanics vote on whether to ratify a tentative agreement for 7 percent wage cuts, which the airline is counting on to preserve its $5.2 billion package of proposed labor cutbacks.
And a decision is expected any day on its application for a $1.8 billion government loan guarantee by the Air Transportation Stabilization Board, which is requiring steep cuts in exchange for federal assistance.
Shares in United's parent company UAL Corp. closed down 23 cents, or 7 percent, at $3.05 on the New York Stock Exchange.
Pilots' union spokesman Herb Hunter said the layoffs had been anticipated since the latest schedule reduction.
"It's very sad and disappointing for those affected, but basically we expected it," he said.
--------------------------------------------------------------------------------
Bloomberg News contributed to this story.
United to lay off 352 pilots
The airline also faces fines for using a duct-type tape to patch holes in planes' wings
By Dave Carpenter
ASSOCIATED PRESS
CHICAGO - United Airlines announced plans Tuesday to lay off another 352 pilots over the next two months as part of its plan to decrease its flying schedule next year.
The company said it will cut 220 pilots' jobs Jan. 6 and another 132 on Feb. 7, reducing its current total of 8,600 pilots by an additional 4 percent.
The actions will increase the number of pilots laid off to 1,196 from cost-saving measures the carrier announced last month, and 9,000 employees in all. United currently has about 83,000 employees.
"This is a very difficult announcement to make because of the impact it will have on our employees and their families," said Steve Forte, United's senior vice president for flight operations.
Also Tuesday, United said it will eliminate 8 management positions and reduce pay for remaining executives to save $60 million as the world's second-biggest carrier seeks to avoid a bankruptcy filing.
United will trim the number of officers to 36 from 44, said United spokesman Chris Brathwaite. Those remaining will have their annual compensation cut by an average of 11 percent over 51/2 years, the company said.
In addition, United may be fined $805,000 because workers used tape to temporarily fix holes in the wing panels of three Boeing Co. 757 jets.
The airline made the repairs last March after inspections found holes, the biggest measuring 2.6 inches in diameter, on wing panels that extend to slow the planes during landings, the Federal Aviation Administration said.
The agency said it prohibits the use of tape for those repairs because of the size or location of the holes. The regulator only allows the use of the tape, similar to duct tape, for certain temporary repairs. The planes made 193 flights before United permanently fixed the holes, the FAA said.
"We're going to fight" the proposed fine, said Joe Hopkins, a spokesman for Chicago-based United. The repair to a minor part didn't harm safety or place passengers and crews at risk, he said.
The announcement of pilot layoffs comes with United awaiting two crucial developments this week that will determine whether it is forced to file for bankruptcy court protection from its hefty debts.
On Thursday, its mechanics vote on whether to ratify a tentative agreement for 7 percent wage cuts, which the airline is counting on to preserve its $5.2 billion package of proposed labor cutbacks.
And a decision is expected any day on its application for a $1.8 billion government loan guarantee by the Air Transportation Stabilization Board, which is requiring steep cuts in exchange for federal assistance.
Shares in United's parent company UAL Corp. closed down 23 cents, or 7 percent, at $3.05 on the New York Stock Exchange.
Pilots' union spokesman Herb Hunter said the layoffs had been anticipated since the latest schedule reduction.
"It's very sad and disappointing for those affected, but basically we expected it," he said.
--------------------------------------------------------------------------------
Bloomberg News contributed to this story.