This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

US Airways Moves Could Cost 1,000 Jobs

TEMPE, Ariz. ( TheStreet) -- US Airways (LCC) said it will realign around four key cities while pulling back in Boston, Las Vegas, New York and on transatlantic service, moves that will lead to the elimination of as many as 1,000 jobs.

The carrier also said it will return its Philadelphia-Beijing route authority to the Transportation Department. The 2007 route award was enthusiastically welcomed as a game-changer that would, for the first time, enable US Airways to serve Asia. Now, the first Asian destination is expected to be Tokyo.

See Our Photo Gallery : U.S. Layoffs Mounts

In many ways, the realignment follows up on an August deal with Delta (DAL), in which US Airways swapped slots at New York LaGuardia for slots at Washington Reagan National and access to congested airports in Tokyo and Sao Paulo. The deal enhanced US Airways' already dominant presence at National.

Now, US Airways says its four key cities are Washington, Charlotte, N.C., Philadelphia and Phoenix. By the end of 2010, they will account for 99% of the carrier's capacity (including shuttle capacity), up from 93% today. Most of the changes will occur this fall and in the first half of 2010.

Among the cutbacks, US Airways will close pilot and flight attendant crew bases at Boston Logan, LaGuardia and Las Vegas. It will cut back Caribbean service from Boston. It will suspend five unsuccessful transatlantic routes from Philadelphia to Birmingham, England; London Gatwick, Milan; Shannon, Ireland, and Stockholm, but will make Brussels and Zurich, Switzerland year-round destinations.

Las Vegas, which was America West's second hub before a 2005 merger with US Airways, continues to shrink. It will have just 36 daily departures, down from 64 today. Las Vegas departures stood at 141 in September 2007, but shrank by about 40% in September 2008, when the airline slashed 1,700 systemwide jobs in response to high fuel costs.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LCC $0.00 0.00%
AAPL $132.54 0.88%
FB $80.54 0.07%
GOOG $540.11 -0.44%
TSLA $247.73 0.86%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs