From the Employee Q&A
Las Vegas Reduction
9. What cuts are happening in LAS?
Effective Sept. 3, our LAS night operation will be closed, except for limited night service to the East Coast. Overall, daily departures from LAS—which were as high as 141 during September 2007—will drop to 81 on Sept. 3. The total number of destinations served by our LAS operation will decline by 24 from 55 during Sept. 2007 to 31 in Sept. 2008. Daily departures will drop further to approximately 74 by the end of 2008 as aircraft are retired from the fleet.
Here’s a list of market exits at LAS when comparing Sept. 2007 to Sept. 2008:
Albuquerque
Atlanta
Austin
Bakersfield
Burbank
Cedar City
Cleveland
Colorado Springs
El Paso
Eugene
Newark
Merced
Medford
Monterey
Oakland
Oklahoma City
Ontario
Palm Springs
Reno
San Antonio
Salt Lake City
Tucson
Visalia
Yuma
10. Why is Vegas downsizing so much?
Historically, both pre-merger America West and today’s US Airways have operated an extensive late night operation in LAS. However, due to the high cost of fuel, the revenue generated from the Las Vegas night operation no longer exceeds the incremental cost of that flying. As a result, we will park those planes overnight, as we do for the majority of our fleet in other markets.
Simply put, what used to be profitable flying at night to/from LAS to other markets is no longer profitable.
11. So the decrease in service then drives the headcount reduction in LAS?
Unfortunately, yes. The decrease in our operation in LAS will result in the reduction of approximately 600 full and part time fleet and customer service positions at our LAS station. We anticipate handling the reduced headcount requirements through attrition this summer.
Company leadership will be in LAS, as well as out across the entire system, today and in the upcoming weeks to help answer questions.
12. Will there be furloughs if attrition doesn’t work?
If necessary, yes. And furloughs would follow the summer travel season and would be voluntary leaves of absence as permitted by our respective labor contracts.
Furloughs Beyond LAS 3
13. With all the capacity and fleet reduction, will there be more headcount reductions in addition to LAS?
Again, the unfortunate answer is yes. The reduced flying will require approximately 1,700 fewer positions across the airline’s system. In addition to the approximately 600 Las Vegas airport staff, we will be reducing staff levels by approximately 400 flight attendants, 300 pilots and an additional 200 airport positions throughout the system. We’re also eliminating 200 staff and management positions.
Breakdown of approximate reductions by workgroup
Pilots 300
Flight Attendants 400
LAS Airport 600
Other Airport 200
Management/Staff 200
Total 1700
For front line employees, the staffing reduction is expected to be handled through attrition throughout the summer. Any necessary furloughs following the summer travel season will be offset by voluntary leaves of absence as permitted by the respective labor contracts.
14. What are the numbers for pilot reductions on the East and West payrolls? How about Flight attendants?
We plan reductions of 175 pilots on the West and 125 on the East. The West number is higher because it includes about 100 excess pilots currently on the West payroll. For flight attendants, the total number is about 400, and the mix of East versus West will be approximately even. In any event, we are working to provide voluntary options for reducing the pilot and flight attendant workforce and to minimize involuntary layoffs where we can.
15. What about buyouts or leaves of absence?
Again, any necessary reductions after the summer travel season will be offset by voluntary leaves of absence as permitted by our respective labor contracts prior to any involuntary furloughs. More specific information for each workgroup will be communicated as needed in the months ahead.