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Monday, July 21, 2008
Capacity Cuts Hit RJET, Midwest
RJET Cuts 500
Approximately 500 employees, 10 percent of its workforce, will be cut by Republic Airways Holdings resulting from market conditions as well as capacity cuts by major partners. The move comes after news that subsidiary Chautauqua’s United Express operation would end at the end of next year. Related Story The staff reductions will take place over the next several months. The company believes a portion of the reduction will occur through normal attrition.
"These reductions reflect our response to the actions our network partners are taking to reduce the size of their domestic hub operations in light of sustained, high fuel prices. The combined impacts of fewer aircraft flying and lower utilization rates on our smaller jet aircraft are leaving us with no choice but to adjust our business to current market conditions," said Bryan Bedford, chair, president and CEO of Republic. "We regret having to make this difficult decision and we will continue working hard to grow our business with larger capacity aircraft and get our people back to work as soon as possible."
Midwest to Layoff 40 Percent of Workforce
Midwest Airlines is reduce is workforce by 1,200 employers or a whopping 40 percent of its staff at both the airline and its Skyway ground services subsidiary. SkyWest flies the Midwest Connect program. The majority of the jobs affected are related to the airline's previously announced decision to remove its 12 of its 37-aircraft fleet from service this fall, as well as other schedule adjustments to be announced. Related Story
"In order to successfully restructure, there is no way to avoid deep and painful reductions to our current workforce," said Timothy E. Hoeksema, chair and chief executive officer.
The company began notifying affected employees last week. The reductions will take the form of furloughs or position eliminations, depending on job function. The reductions are spread throughout the airline's flight operations, inflight, operations, maintenance and general administrative functions. The effective date of the reductions will vary by job function, but most will take place no later than mid-September.
In addition, the company said it is continuing talks this week with the Airline Pilots Association and the Association of Flight Attendants to reach agreements on concessions necessary to reduce the airline's cost structure.

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