First Wave Of Layoffs Will Start After Holidays

United Airlines has confirmed that the first of 7,000 promised layoffs will begin just after the holidays.

Spokeswoman Megan McCarthy told the Chicago Tribune Wednesday that about 1,200 jobs will be cut as 2009 starts. About 700 will be mechanics, including 300 at United's San Francisco maintenance base, and 150 at Chicago O'Hare.

Other sources has earlier reported the airline will cut as many as 490 customer service reps, and 387 pilots, also in January.

McCarthy commented, "These are part of the difficult but necessary actions we are taking companywide to enable United to compete in this challenging economic environment."

Analyst Michael Derchin, aviation analyst with FTN Midwest Securities, says the airlines can't afford to assume the current dip in fuel prices will last. "They don't have great visibility beyond the next month or two," he said.

The International Brotherhood of Teamsters represents the mechanics, and union leaders plan to meet with United officials next week. David Bourne, the union's airline division director, told workers in a letter announcing the cuts that the union will, "...ensure that the company does not use the upcoming furloughs as an excuse to outsource maintenance work to any third-party vendor."

Many of the cuts happening in January were announced earlier this year, but United held off implementing them until after the holiday travel season. Overall, United plans to park about 100 jets, or about 20 percent of its fleet.

FMI: www.united.com