POSTED: 3:19 pm EDT June 3, 2008
UPDATED: 8:48 pm EDT June 3, 2008
MIAMI -- The president of Spirit Airlines said Tuesday the carrier has no plans for layoffs, despite reports that implied it is laying off half of its employees.
According to letters released Tuesday by union leaders, the airline may lay off or move up to 60 percent of its flight attendants and 45 percent of its pilots in an effort to cut costs and deal with soaring fuel prices.
The Miramar-based discount carrier wrote in the notification letters that it plans to close its hubs in New York's LaGuardia Airport and San Juan, Puerto Rico, and shrink its main Fort Lauderdale hub by Aug. 1. The airline is also closing its Detroit hub for flight attendants, according to the letters.
Spirit told NBC 6 no layoffs are planned. The airline's hub will stay in Fort Lauderdale, but the carrier may relocate crews to different cities to save money.
The letters, required by law under the Worker Adjustment and Retraining Notification Act, were sent out Friday by Jeff Carlson, the airline's vice president of flight operations. Carlson wrote in the letters that the airline will furlough or displace up to 448 flight attendants and 242 pilots.
"It's kind of unfortunate that it got put out that way," said Spirit President and CEO Ben Baldanza.
He said the letters began as a precaution to keep the airline alive and then became a rumor that the carrier was dying.
"The Spirit management team, the owners of Spirit and all of the employees of Spirit are completely committed to working through a very tough economic environment with high fuel prices, doing what it takes to keep the airline stable, solid and growing over time, and that's exactly what we're all here to do 24-7," he said.
Baldanza said the airline will not raise airfares and has no plans to cut any routes. He said the carrier is even adding new destinations.
"If we make the actual decision to shrink at all -- to reduce one frequency on one route or return some airplanes or do anything -- if we made that decision, which we have not made yet, we would absolutely talk to all the employees affected directly about that change and what that meant for them," he said.
But the letters sparked concern from the pilot and flight attendants unions.
"It was utter shock," said Sean Creed, chairman of the Spirit Airlines pilots union. "To say I am disappointed would be an understatement. We are devastated."
Spirit has about 540 pilots.
As many as 240 attendants could be affected in Fort Lauderdale, 141 in Detroit, 15 in New York and 52 in San Juan, according to letters sent to Patricia Friend, international president of the Association of Flight Attendants. Spirit has about 750 flight attendants.
"These are the worst case scenario numbers," said Corey Caldwell, spokeswoman for the Association of Flight Attendants, the union that represents Spirit's attendants. "It's likely the ultimate number will be less, but it kind of popped out of nowhere."
Spirit spokeswoman Misty Pinson said the notices were necessary to comply with the WARN Act.
"We have made no final decisions about reductions, if any, but to maintain flexibility, we will need to continue to evaluate our overall flying this fall during our lowest demand period of the year if fuel prices remain at record levels," she wrote in an e-mail.
Creed said he has been flooded with calls from concerned pilots, who were listed by name and title in the letters.
"It's very difficult, as a pilot, if you lose your job to go find another one," Creed said. "Pilots are worried about their future."
Baldanza said the airline is getting ready to make changes to deal with the tough economic times but has not committed to anything. He said the carrier plans to grow over the next few months.
"In a fast-changing economic environment, generally the people who survive and the people who win out of that environment are those who are the lowest cost producers of their product," he said. "And Spirit is the lowest-cost producer of its product everywhere we fly, and therefore, if you're going to bet on any airline for the fall, Spirit is the kind of airline to bet on."
The airline industry is struggling to overcome with record fuel prices.
"Fuel is pushing up to be 50 percent of our total cost and that compares to less than 20 percent just a few years ago," Baldanza said.
Last month, American Airlines said it would cut domestic flight capacity by 11 percent to 12 percent in the fourth quarter, after the peak summer season is over.
Delta Air Lines said in March that it would offer voluntary severance payouts to roughly 30,000 employees -- more than half its work force -- and cut U.S. capacity by an extra 5 percent. The Atlanta-based carrier said last week that more than 3,000 people took the package, and Delta will accept all the volunteers.
Spirit, which is privately owned, flies to 36 cities in the U.S., Latin America and the Caribbean. The carrier employs about 2,200 people and has hubs in Detroit and Fort Lauderdale. Spirit is one of the largest carriers at Fort Lauderdale-Hollywood International Airport. Related Articles:
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POSTED: 3:19 pm EDT June 3, 2008
UPDATED: 8:48 pm EDT June 3, 2008
MIAMI -- The president of Spirit Airlines said Tuesday the carrier has no plans for layoffs, despite reports that implied it is laying off half of its employees.
According to letters released Tuesday by union leaders, the airline may lay off or move up to 60 percent of its flight attendants and 45 percent of its pilots in an effort to cut costs and deal with soaring fuel prices.
The Miramar-based discount carrier wrote in the notification letters that it plans to close its hubs in New York's LaGuardia Airport and San Juan, Puerto Rico, and shrink its main Fort Lauderdale hub by Aug. 1. The airline is also closing its Detroit hub for flight attendants, according to the letters.
Spirit told NBC 6 no layoffs are planned. The airline's hub will stay in Fort Lauderdale, but the carrier may relocate crews to different cities to save money.
The letters, required by law under the Worker Adjustment and Retraining Notification Act, were sent out Friday by Jeff Carlson, the airline's vice president of flight operations. Carlson wrote in the letters that the airline will furlough or displace up to 448 flight attendants and 242 pilots.
"It's kind of unfortunate that it got put out that way," said Spirit President and CEO Ben Baldanza.
He said the letters began as a precaution to keep the airline alive and then became a rumor that the carrier was dying.
"The Spirit management team, the owners of Spirit and all of the employees of Spirit are completely committed to working through a very tough economic environment with high fuel prices, doing what it takes to keep the airline stable, solid and growing over time, and that's exactly what we're all here to do 24-7," he said.
Baldanza said the airline will not raise airfares and has no plans to cut any routes. He said the carrier is even adding new destinations.
"If we make the actual decision to shrink at all -- to reduce one frequency on one route or return some airplanes or do anything -- if we made that decision, which we have not made yet, we would absolutely talk to all the employees affected directly about that change and what that meant for them," he said.
But the letters sparked concern from the pilot and flight attendants unions.
"It was utter shock," said Sean Creed, chairman of the Spirit Airlines pilots union. "To say I am disappointed would be an understatement. We are devastated."
Spirit has about 540 pilots.
As many as 240 attendants could be affected in Fort Lauderdale, 141 in Detroit, 15 in New York and 52 in San Juan, according to letters sent to Patricia Friend, international president of the Association of Flight Attendants. Spirit has about 750 flight attendants.
"These are the worst case scenario numbers," said Corey Caldwell, spokeswoman for the Association of Flight Attendants, the union that represents Spirit's attendants. "It's likely the ultimate number will be less, but it kind of popped out of nowhere."
Spirit spokeswoman Misty Pinson said the notices were necessary to comply with the WARN Act.
"We have made no final decisions about reductions, if any, but to maintain flexibility, we will need to continue to evaluate our overall flying this fall during our lowest demand period of the year if fuel prices remain at record levels," she wrote in an e-mail.
Creed said he has been flooded with calls from concerned pilots, who were listed by name and title in the letters.
"It's very difficult, as a pilot, if you lose your job to go find another one," Creed said. "Pilots are worried about their future."
Baldanza said the airline is getting ready to make changes to deal with the tough economic times but has not committed to anything. He said the carrier plans to grow over the next few months.
"In a fast-changing economic environment, generally the people who survive and the people who win out of that environment are those who are the lowest cost producers of their product," he said. "And Spirit is the lowest-cost producer of its product everywhere we fly, and therefore, if you're going to bet on any airline for the fall, Spirit is the kind of airline to bet on."
The airline industry is struggling to overcome with record fuel prices.
"Fuel is pushing up to be 50 percent of our total cost and that compares to less than 20 percent just a few years ago," Baldanza said.
Last month, American Airlines said it would cut domestic flight capacity by 11 percent to 12 percent in the fourth quarter, after the peak summer season is over.
Delta Air Lines said in March that it would offer voluntary severance payouts to roughly 30,000 employees -- more than half its work force -- and cut U.S. capacity by an extra 5 percent. The Atlanta-based carrier said last week that more than 3,000 people took the package, and Delta will accept all the volunteers.
Spirit, which is privately owned, flies to 36 cities in the U.S., Latin America and the Caribbean. The carrier employs about 2,200 people and has hubs in Detroit and Fort Lauderdale. Spirit is one of the largest carriers at Fort Lauderdale-Hollywood International Airport. Related Articles:
On the other hand, the overseas contract consultant I am employed with met with spirit management this week and was told he would have 160 "contacts" by the end of June.
Yeah, I believe the management guys..........
On the other hand, the overseas contract consultant I am employed with met with spirit management this week and was told he would have 160 "contacts" by the end of June.
Yeah, I believe the management guys..........
What? I dont understand what you are talking about?
__________________
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I think what he means is that no one will be "furloughed", however if you want to keep your job you may be flying overseas on a crew leasing type contract.
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Spirit Airlines President Says No Layoffs
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