Skip to main content /TRAVEL
CNN.com /TRAVEL
CNN TV
EDITIONS





Airlines to announce more layoffs

WASHINGTON (CNN) -- Three more airlines will be laying off employees as they face reduced operations in the wake of last week's terrorist hijackings, according to sources and company announcements.

A source at American Airlines, the nation's largest, said Monday that it is expecting as early as mid-week to announce job cuts. The source would give no estimate of the number of layoffs or an exact date for the announcement.

Northwest Airlines, the nation's fourth largest, is expected to announce an unspecified number of layoffs as early as Thursday, company sources tell CNN. Northwest's layoff plans also were confirmed to CNN by Rep. James Oberstar, D-Minnesota.

And US Airways said Monday that it expects to lay off about 11,000 employees as it reduces capacity by 23 percent, as measured by available seat miles, from the level of service provided before last week. No date was given for the cutback.

MORE STORIES
Ailing airlines look for financial aid  
 
Attack on America
 CNN.COM SPECIAL REPORT
 CNN NewsPass Video 
Agencies reportedly got hijack tips in 1998
 MORE STORIES
Intelligence intercept led to Buffalo suspects
Report cites warnings before 9/11
 EXTRA INFORMATION
Timeline: Who Knew What and When?
Interactive: Terror Investigation
Terror Warnings System
Most wanted terrorists
What looks suspicious?
In-Depth: America Remembers
In-Depth: Terror on Tape
In-Depth: How prepared is your city?
 RESOURCES
On the Scene: Barbara Starr: Al Qaeda hunt expands?
On the Scene: Peter Bergen: Getting al Qaeda to talk

The airlines join Continental, which announced Saturday that it was immediately reducing its long-term flight schedule by about 20 percent and would furlough some 12,000 employees. Continental and Northwest have a marketing alliance.

Reduced passenger demand and new security requirements are putting the squeeze on all airlines.

Most airlines expect to fly no more than 80 percent of the schedules they had before last week's terrorist hijackings. Northwest Airlines, for example, said Monday it will reduce its flight schedule by 20 percent.

"With a 20 percent flight reduction you unfortunately don't need all your staff," a source at Northwest told CNN.

A source at American Airlines said the number of layoffs there will be dependent upon how business rebounds.

Load factors -- which measures the amount of airline passenger capacity being used -- have not been high since the hijackings. Over the weekend, the source said, American's load factor was decent, "but that's still people getting back into place" from the hijackings.

The source told CNN "I don't think we will see a lot of people traveling" in future weeks.

Officially, a Northwest spokesman would only say that the airline is expected to announce on Thursday measures taken to reduce the size of its flight schedule and it is reviewing overall staffing and resource needs.

"Personnel will be a major piece of that," the source told CNN.

The source said the cutbacks have been made necessary by a significant drop in bookings from both leisure and business travelers, the increased cost of security measures and the fact that it is more difficult to operate a regular schedule with the delays caused by that increased security.

US Airways said US Airways Express carriers Allegheny Airlines, Piedmont Airlines, Potomac Air and PSA Airlines -- all wholly owned by US Airways -- will announce their own service and personnel reductions shortly.

"The entire U.S. aviation system is in jeopardy, and without decisive actions the future of the system, along with its impact on the nation's economy, is imperiled," said US Airways Chairman Stephen M. Wolf. "In addition to measures we are taking independently, we will continue to work closely with the administration and Congress on actions to ensure the future of the framework of the nation's air transportation system."

Airline executives are expected to meet this week in Washington with Transportation Secretary Norman Mineta to talk about the future of the industry, which had already been affected by the economic slowdown before last week's hijacking.

--CNN Correspondent Patty Davis contributed to this report






RELATED SITES:
• Northwest Airlines
• US Airways

Note: Pages will open in a new browser window
External sites are not endorsed by CNN Interactive.


 Search   

Back to the top