Singh4US
Topic Author
Posts: 46
Joined: Wed Jul 26, 2000 12:28 pm

US Airways Cut Almost Half Of Its Work Force

Fri Jun 24, 2005 10:24 pm

06/24/2005

US Airways cut almost half of its work force

http://www.timesonline.com/site/prin...305&dept_id=478569&newsid=14750224

By: Karen Ferrick-Roman - Times Staff

US Airways has nearly cut its work force in half since the golden days, before terror swept the skies on Sept. 11, 2001.


In a report issued this week by the U.S. Department of Transportation, all seven major airlines, or legacy airlines, lost employees between April 2001 and April 2005, but none at a bigger rate than US Airways.

Staffing levels at twice-bankrupt US Airways plummeted by 49.5 percent, from 44,192 in 2001 to 22,294 in 2005.

"That's how they're reorganizing, by becoming smaller," said aviation analyst Michael Boyd of The Boyd Group of Evergreen, Colo.

United Airlines, which entered bankruptcy shortly after US Airways' first foray into protection and has stayed there, cut its employees by 42.4 percent, from 96,428 in 2001 to 55,529 in 2005.

Overall, the eight legacy airlines lost about 147,550 employees, or 34 percent of their work force.

The report, said Pat Litzinger, finance professor at Robert Morris University, "certainly seems to confirm what everybody believed about the airline industry."

The study also showed low-cost carriers, such as Southwest, America West and AirTran, added about 10,800 workers, growing by about 18 percent in the four-year period.

Low-cost carriers, Boyd said, are expanding. Some airlines on that list, such as Independence Air, didn't even exist before 9/11.

But Boyd said he tires of the chant that "legacy carriers are dying, and low-costs and regionals will pick it up."

"If legacies are dying," he said, "regionals will go with them."

United and US Airways remain in bankruptcy. Some analysts have said Northwest and Delta are dancing on bankruptcy's brink. All of the legacy lines have been losing money annually.

If the legacies die, Boyd said, "about 40 percent of the airports in the country won't have air service."

Low-cost carriers are picky about where they land.

"They don't go to little markets anymore," Boyd said. "If anybody thinks a low-cost carrier is going to rush into Erie, they're nuts. They're only going to relatively large markets."

An even larger growth for the four years was shown in regional carriers, such as Air Wisconsin, the former United Express carrier with an investment in US Airways and a shot at some routes; Mesa, which supplies crews and planes to America West and US Airways; and US Airways' subsidiary PSA.

In the four years, 14 regional airlines grew by about 85 percent, adding 26,057 workers, the report said.

"It might be logical to assume that this growth went along with the decline in the major carriers," Litzinger said.

"It certainly would seem regionals are flying more people because you wouldn't need (more) personnel unless that were the case."

It's simply outsourcing, Boyd said. He took umbrage even with the listing.

"They're neither regional nor airlines. You cannot book a seat on Chautauqua Airlines," Boyd said. "Regional airlines, as they call them today, are really just vendors and crews to major airlines.

"They stopped being airlines 10 or 15 years ago," he continued. "They're leasing companies; they're not a separate part of the airline industry.

"For the DOT to put out this study, it's ridiculous to say, 'The airline leasing companies are making money too.' "

Karen Ferrick-Roman can be reached online at kroman@timeson line.com.

©Beaver County Times Allegheny Times 2005
 
ikramerica
Posts: 13812
Joined: Mon May 23, 2005 9:33 am

RE: US Airways Cut Almost Half Of Its Work Force

Fri Jun 24, 2005 10:36 pm

Quoting Singh4US (Thread starter):
"They don't go to little markets anymore," Boyd said. "If anybody thinks a low-cost carrier is going to rush into Erie, they're nuts. They're only going to relatively large markets."

That's the whole point. These airlines can grow by cherry picking high volume routes and secondary airports in major markets. The real challenge comes if they start to expand into the smaller markets and see why the "legacy" carriers were struggling to begin with.

JetBlue with their E190s is going to fire the first major salvo into smaller markets. We'll see if this cripples them or proves it can work.
Of all the things to worry about... the Wookie has no pants.
 
trident2e
Posts: 1286
Joined: Sun Dec 28, 2003 3:38 am

RE: US Airways Cut Almost Half Of Its Work Force

Fri Jun 24, 2005 10:40 pm

Well, this is clear evidence of the vast over-staffing that has plagued the US airline industry for years. No wonder they haven't made any money.
 
quickmover
Posts: 2142
Joined: Sat Mar 06, 2004 4:28 am

RE: US Airways Cut Almost Half Of Its Work Force

Fri Jun 24, 2005 10:42 pm

The last time I checked in at CLT, half of USAirs former ticket counter space was abandoned. What remained was completely automated with kiosks at every station. The line moved fast.
 
supa7E7
Posts: 1360
Joined: Fri Aug 27, 2004 2:05 am

RE: US Airways Cut Almost Half Of Its Work Force

Fri Jun 24, 2005 10:59 pm

Erie can be served profitably... at high fares. So it will always be done that way.
"Who's to say spaceships aren't fine art?" - Phil Lesh

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos