SFGate: Alaska Airlines to cut capacity, slash jobs

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Friday, September 12, 2008 (AP)
Alaska Airlines to cut capacity, slash jobs
By SAMANTHA BOMKAMP, AP Business Writer


   (09-12) 15:50 PDT NEW YORK, (AP) --
   Alaska Airlines said Friday it will cut capacity by 8 percent this winter
and slash up to 1,000 jobs, as high fuel costs and a weak economy provide
a "one-two punch" to the carrier's bottom line.
   The job cuts represent about 9 percent to 10 percent of the airline's
10,000 employees. The 850 to 1,000 positions on the chopping block include
pilots, flight attendants and aircraft technicians, as well as
reservations, customer service and ramp agents.
   The carrier, a unit of Seattle-based Alaska Air Group Inc., says the
capacity reductions and job cuts will start in November and continue
throughout next year.
   Alaska Airlines plans to cancel low-demand flights on Saturdays and
holidays, reduce flights by about 1 roundtrip flight per day on major
routes and end seasonal service on three Mexico routes. In total, the
capacity cuts will reduce the airline's flights by about 15 percent.
   Alaska Airlines said it is working with the unions that represent affect=
ed
employees, and offering them "early out" programs and extended leave of
absences to lessen the number of involuntary furloughs.
   Alaska Airlines says the moves were needed because of "the one-two punch
of record oil prices and a softening economy, on top of increased
competition."
   The company said it has taken steps to offset record costs, including
increasing fees and adding charges, reducing fuel consumption and
deferring capital projects.
   "These steps, when combined with the recently completed transition to an
all-Boeing 737 fleet, improve our viability, but are not enough to
eliminate the need to reduce the number of our employees," said Alaska Air
Group Chairman and CEO Bill Ayer.
   Spokesman Stephen Gordon of the Machinists union, which represents more
than 3,700 ticket and gate agents, ramp personnel and mechanics, said the
layoffs weren't a surprise.
   "Clearly we knew this was going to be coming ... it's an industrywide
issue," he said.
   But some other employees insist there are other ways to solve the
carrier's problems.
   David Campbell, an Alaska Airlines pilot and a spokesman for the Air Line
Pilots Association, said that from his perspective, the layoffs were a
"bad decision."
   Capt. Bill Shivers, chairman of ALPA, said he is concerned the airline
will cut its staff of pilots back too much and not be able to take
advantage of opportunities for growth in the future.
   "We are concerned that competitors such as Southwest, Virgin America or
JetBlue will be in a position to capitalize on opportunities that our
company has denied itself the ability to take advantage of," he added.
   ALPA, which represents the 1,500 pilots at Alaska, is asking the airline
to reduce the guaranteed number of flight hours — and therefore
reduce their pay — instead of using furloughs.
   _____
   Associated Press Writer Tim Klass in Seattle contributed to this report.=
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Copyright 2008 AP

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