Dec 3, 2008 6:30 pm US/Central
United To Lay Off 1,200 Employees After Holidays
CHICAGO (CBS) ―
United Airlines is preparing to lay off almost 1,200 workers early in 2009, the airline confirmed Wednesday.
The International Association of Machinists and Aerospace Workers says 490 of the ramp and customer service workers it represents will be laid off by the nation's third-largest airline. That includes 253 people at Chicago's O'Hare Airport.
Chicago-based United also plans to close maintenance facilities at the Newark, New York-LaGuardia and Philadelphia airports on Jan. 11.
The airline said earlier this year it would be cutting its workforce by 7,000 in total by the end of next year in conjunction with reducing its flights.
United said in June it plans to ground its entire fleet of 94 Boeing B737s as well as six of the company's 747s-its oldest and least fuel-efficient planes. It previously said it was going to mothball 30 of the jets. It is also scrapping its coach-only "Ted" service and reconfiguring those planes to include first-class seats.
And the carrier will cut mainline domestic capacity by 17 to 18 percent in 2009, while also scaling back international capacity by 4 to 5 percent.
"The decision to dramatically reduce our capacity profile, particularly in the domestic marketplace, while over time eliminating a fleet type, is a significant step leading to a more effective and efficient operating fleet for United in the years ahead, while improving our customer experience and reliability," Chief Operating Officer John Tague said in a statement in June 2008.
Airlines at the time were struggling with mounting fuel costs. Since then oil prices have come down dramatically.
The Associated Press contributed to this report.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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