Changes at United Airlines' Cleveland base will result in 470 positions lost The Chicago Tribune reported Monday.
"The demand for hub-level connecting flying through Cleveland simply isn't there," Jeff Smisek, CEO Jeff Smisek told employees in a letter The Tribune reported. "Ultimately, we can't create demand, but we do have a responsibility to react to it. We must make the right business decisions, even when those decisions are painful," Smisek said in a letter The Tribune reported.
Lack of profit over the last 10 years and more is to blame The Tribune reported.
Pilots and flight attendants will stay on the job, while airport operations workers, and a select few involved in the airline's catering service are subject to layoffs.
United flights will still fly to and from Cleveland, but will be reduced 60 percent The changes will be in place by June The Tribune reported.
United has been down several millions of dollars in the past few years.
United merged with Continental Airlines in 2010, and is also re-locating many of its bigger airplanes from its base in Tokyo, Japan Bloomberg Businessweek reported. It is also removing its flight from Seattle to Tokyo so Delta can construct an Asian hub from the Seattle-Tacoma airport Bloomberg Businessweek reported.
The changes are part of United's reduction plans. The airline is also reducing its 50-seat regional jet fleet for bigger planes with 76 seats Bloomberg Businessweek reported.
The layoffs affect veteran United Airlines employees come April 1 Bloomberg reported. The airline is also bringing in new stewardesses to staff planes on aircrafts from the old Continental Airlines Bloomberg reported.
United Airlines will slash yearly expenses $2 billion, and take bigger planes from its Asia flights to increase revenue Bloomberg Businessweek reported.
United Airlines and the Association of Flight Attendants discuss their contract each month for a week Bloomberg reported.
