AirTran to furlough 169 pilots
Written on August 25, 2008
AirTran Airways said Friday it will furlough 169 pilots as it moves to cut costs and reduce flight schedules to make up for high fuel prices.
The announcement comes after the Orlando, Fla.-based airline said it would cut flight capacity by 7 percent to 8 percent for the last quarter of the year, including significant cuts to its hub at Hartsfield-Jackson Atlanta International Airport.
The pilot furloughs will begin Sept. 3, said AirTran spokeswoman Judy Graham-Weaver. Pilots could be called back to work if capacity increases.
In July, AirTran (NYSE: AAI) announced it planned to furlough 180 pilots and 300 flight attendants in hopes of saving about $16 million. The airline also offered an “early exit” voluntary leave program to employees with at least five years’ experience with the company.
On Aug. 1 the airline reported that only “about two dozen” of AirTran’s employees, mainly in the company’s corporate offices, had applied for the airline’s “early exit” program.
Few, if any, pilots opted to take the “early exit” option or voluntary temporary leave of six to 12 months.
All flight attendant cuts came from the six and 12-month voluntarily leave programs or “early exit,” Graham-Weaver said, and layoffs will not be required payday advance online. The airline has said attendants who volunteered for leave could come back after that time and keep their seniority.
The airline also has announced it plans to slash employee pay by 5 to 15 percent starting in hopes of saving $15 million. Senior corporate officers would have their pay cut by 15 percent, while mid-level employees will see their pay reduced between 5 and 11 percent.
Nearly one half of the carrier’s payroll is organized labor, and the carrier’s unionized mechanics recently rejected pay cuts.
Graham-Weaver said pay cuts are still on the table but have been put on hold pending negotiations with labor unions.