United Airlines to cut 1,300 jobs in Houston
June 5, 2012, 11:54 am
United Airlines recently lost a battle against Southwest Airlines, which wanted to add international flights out of George Bush Intercontinental/Houston Airport. United is now forced to cut 1,300 jobs, or 10 percent of the passenger-carrying capacity in response, as well as reduce flights out of the airport.
The Houston City Council voted earlier this week to allow Southwest to pay the $100 million cost to add international flights and a customs facility to the airport.
United also said it will be forced to shut down the route it was scheduling from IAH to Auckland, New Zealand, using its new Boeing 787 aircraft, saying it would not be economically feasible now.
Some are questioning the motives of United for laying off all those employees.
"That competition (from Southwest) is at least three years away, so for United to say there are going to be 1,300 people laid off next week or so, that's just not reasonable," said Mayor Annise Parker, who helped out on the deal with Southwest. "There is no competition today, so any decisions that they make on personnel are based on other things."
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