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Log inUS Airways to slash 1,700 jobs, cut more capacity
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US Airways to slash 1,700 jobs, cut more capacity
by Outspoken on Thu Jun 12, 2008 8:22 pm
US Airways to slash 1,700 jobs, cut more capacity
By Mark McSherry
Reuters News Service
NEW YORK (Reuters) - US Airways Group Inc (LCC.N) said on Thursday it will reduce its work force by 1,700, or about 5 percent, and will cut more capacity than planned and introduce new fees as the airline industry battles record fuel prices and a weakening economy.
The airline will reduce its fourth-quarter domestic mainline capacity by 6 to 8 percent, having previously planned a 2 to 4 percent cut.
For 2009, US Airways plans to cut domestic mainline capacity 7 to 9 percent from 2008 levels.
The airline will also return 10 aircraft to leasing companies and cancel deliveries of two aircraft.
US Airways said its new fees will include the introduction of a $15 service fee for a first checked bag for many customers from July 9.
"Our industry is profoundly challenged by the dramatic increase in fuel prices, and we must write a new playbook for running a profitable airline in this new and challenging environment," said US Airways chief executive Doug Parker in a statement.
US Airways said its fuel expense will be about $1.9 billion more in 2008 than it was last year.
http://news.yahoo.com/s/nm/20080612/bs_nm/usairways_dc;_ylt=Ai3TwUfum54ErqCJ.nPF4z2s0NUE
By Mark McSherry
Reuters News Service
NEW YORK (Reuters) - US Airways Group Inc (LCC.N) said on Thursday it will reduce its work force by 1,700, or about 5 percent, and will cut more capacity than planned and introduce new fees as the airline industry battles record fuel prices and a weakening economy.
The airline will reduce its fourth-quarter domestic mainline capacity by 6 to 8 percent, having previously planned a 2 to 4 percent cut.
For 2009, US Airways plans to cut domestic mainline capacity 7 to 9 percent from 2008 levels.
The airline will also return 10 aircraft to leasing companies and cancel deliveries of two aircraft.
US Airways said its new fees will include the introduction of a $15 service fee for a first checked bag for many customers from July 9.
"Our industry is profoundly challenged by the dramatic increase in fuel prices, and we must write a new playbook for running a profitable airline in this new and challenging environment," said US Airways chief executive Doug Parker in a statement.
US Airways said its fuel expense will be about $1.9 billion more in 2008 than it was last year.
http://news.yahoo.com/s/nm/20080612/bs_nm/usairways_dc;_ylt=Ai3TwUfum54ErqCJ.nPF4z2s0NUE
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Plato (427-347 BC)
