=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/03/21/f= inancial0747EST0017.DTL ---------------------------------------------------------------------- Friday, March 21, 2003 (AP) United warns of coming war cutbacks; other airlines also poised DAVE CARPENTER, AP Business Writer (03-21) 04:47 PST CHICAGO (AP) -- The nation's airlines, already suffering from a big drop in bookings before the U.S. war with Iraq started, were poised to cut back on flying schedules and staffing levels. United Airlines warned its employees Thursday that layoffs could come as early as Friday as it and other carriers prepared to reduce flying schedules and staffing as a result of the war. "With the initiation of military action between the United States and Iraq, United is taking action to reduce its schedule and work force systemwide," the company said in a taped message to employees Thursday. "Affected employees could be notified and placed on authorized no-pay status as early as tomorrow." While no cutbacks were announced publicly, the Machinists' union said mo= re than 1,100 mechanics at United's Indianapolis maintenance center were being put on temporary leave. The airline plans to put about 2,300 flight attendants on leave April 1, the Association of Flight Attendants said on its Web site. Other war-related cutbacks are almost certain. United CEO Glenn Tilton said last week the bankrupt airline expected to trim its schedule by 10 percent to 12 percent initially and reduce its work force accordingly in the event of war. Chicago-based United, the world's second-largest airline, operates about 1,700 flights daily and has about 76,000 employees -- all but 4,000 based in the United States. Spokesman Chris Braithwaite said "any reduction in employee levels in Indianapolis or anywhere else will be directly tied to our schedule reductions due to the war in Iraq." Scotty Ford, president of Machinists' District 141-M representing 10,300 mechanics and related employees, said in a posting on the union Web site that United intends to put 468 Indianapolis mechanics on leave effective Tuesday. All remaining mechanics there would be put on temporary leave as of April 15. The mechanics would be recalled to work from June 15 to Aug. 15. Machinists' union spokesman Joseph Tiberi said 1,148 mechanics in all would be affected. Ford also said United will be reducing its active fleet on April 1 by seven 737s, ten 757s and four 777s. "District 141-M recognizes the additional hardships that war brings to t= he entire industry, but we feel the problems would be better addressed through consensual, ratified agreements than knee-jerk reactions to each emerging crisis," Ford said. While the financial crisis is more severe at United, which filed for Chapter 11 bankruptcy protection, other airlines also have been hit hard by the soft economy and the war-related dropoff in bookings. Already this week, Continental Airlines announced it will cut its work force by about 1,200 people by the end of the year to save $500 million. More layoffs are planned if war with Iraq is prolonged and air travel remains soft. American Airlines, the world's No. 1 carrier, said Thursday it will cut international flights by 6 percent in April to meet a downturn in travel bookings due to the war in Iraq and could make additional reductions if traffic remains slow. Northwest Airlines on Thursday suspended its daily nonstop service from Amsterdam to India through Sunday. Spokesman Kurt Ebenhoch said the action was taken Thursday because of the start of military action. Spokesmen for both US Airways and America West said they were evaluating the situation and had not made any schedule changes. The airlines did not release any information about the immediate impact = of the start of war. United said earlier this week that business had fallen off dramatically industrywide as war approached, especially on international routes. Separately, Tilton took issue with the widespread attention given to United's statement in a bankruptcy filing this week that liquidation is a "distinct possibility" if it doesn't soon achieve the $2.56 billion in annual labor cost reductions it's seeking. "We have absolutely no intention whatsoever of failing, and we have every intention of doing a lot more than simply surviving," he said in a recorded message to employees. "It's not news that Chapter 11 sometimes leads to liquidation. ... And it really isn't news that if they don't transform, they don't survive," Tilton said. "What is news is the recent, Iraqi war-driven revenue shortfalls that the airline industry and United have already begun to experience." On the Net: www.united.com www.amrcorp.com =20 ---------------------------------------------------------------------- Copyright 2003 AP