More airlines move to reduce workforce

by Canadian Shipper

In the wake of September 11’s terror attacks on the U.S. , an increasing number of the world’s airlines are looking to reduce capacity and workforce, many citing lower passenger and freight volumes and anticipated losses.

The latest to announce reduced operations are Northwest Airlines, Swissair, Varig and Air Transat.

-Northwest Airlines will cut 10,000 employees, around 19% of its workforce, as it reduces its schedule by 20%.

-Swissair Group will cut 3,000 staff and reduce its fleet.

-Varig will eliminate approximately 1,700 positions representing 10% of its workforce and “immediately ground” 13 of 93 narrowbodies representing 14% of its fleet and 8% of its 30-aircraft widebody fleet of 767s, DC-10s and MD-11s.

-Transat A.T. Inc. will reduce 30% of its activities for the winter season, with no impact on the range of destinations the airline serves, but resulting in the layoffs of approximately 800 Air Transat employees. There will also be a reduction of up to 25% (approximately 500 people) of the workforce across all Transat’s other Canadian divisions and subsidiaries.

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