Ultra-low-cost carrier Spirit Airlines issues furlough notices for 238 at DFW Airport
KNIGHT RIDDER/TRIBUNE 1:05 PM ET 7/31/2020
Symbol Last Price Change | SAVE | 15.51 | -0.73 (-4.5%) | | AAL | 10.9225 | -0.2575 (-2.3%) | | LUV | 30.44 | -0.52 (-1.68%) | | QUOTES AS OF 01:05:31 PM ET 07/31/2020 |
Spirit Airlines (SAVE) issued layoff-furlough notices to 238 pilots and flight attendants based at DFW International Airport, the latest in cutbacks as airlines rush to trim payrolls before a crucial Oct. 1 date.
Spirit sent notices to 79 pilots, all first officers, and 159 flight attendants, according to a letter filed with the Texas Workforce Commission and made public Friday.
Airlines that took federal stimulus money are not allowed to furlough or layoff employees until Oct. 1, or cut wages and benefits.
Miramar, Fla.-based Spirit took about $330 million in federal grants, but is facing a tough choice in October when that money runs out. Even by October, no one expects airline traffic to be back to the levels needed to support the industry’s 750,000 employees.
Spirit, which specializes in a la carte service on flights catering to leisure travelers, is not planning to abandon service to DFW, said spokesman Erik Hofmeyer.
“This decision was difficult, and it was one we hoped we would never have to make,” Hofmeyer said in a statement. “We continue to look for ways to reduce the number of furloughs as October approaches, and we thank the team members who have already helped by taking voluntary leave.”
The cutback notices weren’t surprising for Spirit, which has warned it too may need to cut back for fall. Federal law requires employers to give 60 days notices before it makes large layoffs.
But like other airlines, Spirit is hoping to reduce the need for involuntary layoffs either through employees voluntarily taking time off or early retirements or through a second round of federal payroll grants that could last until March.
“But right now, I think we’re still reading the game film to be honest, because the summer has been up and down both sides, and we want to make sure that we digest all the information before we make a call,” said Spirit CEO Ted Christie in a call with investors on July 22.
Spirit serves 17 cities nonstop from DFW, including vacation spots such as Cancun but also large cities like New York, Boston, Chicago and Los Angeles.
“There will be reductions in the number of flights we’ll offer at DFW this fall, however, it will still be higher than what we offered earlier in the year in April, May and June when demand for air travel was at its lowest,” Hofmeyer said.
Spirit has insisted it will be better positioned than most other airlines because of its leisure travel emphasis. Analysts and airlines are expecting a slower recovery for business passengers.
Fort Worth-based American Airlines(AAL) has sent out about 28,000 furlough notices to employees across the country. Chicago-based United has sent out 36,000, including 4,700 in Texas and 71 at DFW International Airport.
Dallas’ Southwest Airlines(LUV) said it won’t need to furlough any employees in the fall, but that was only made possible when 28% of its employees signed up for early retirement or extended leave. |
