American Airlines, US Airways Face Economic Turbulence, Cuts 1700 Jobs

Two major airlines companies in the United States announced on Wednesday that it will be slashing some 1, 700 jobs due to the prolonged effect of the recession in the air industry.

In a statement, officials of the US Airways said that they would be cutting off some 1, 000 workers in the first two quarters of 2010. Likewise, they said that the company will be reducing services in Europe as the demand for additional flights continued to hamper its operations.

“Instead, we will focus on our key network operations in the US. This included Charlotte, Philadelphia, and Phoenix. Also, we will continue to strengthen flight operations in Washington and the popular shuttle service,” officials said in the statement.

The official stressed that with the strengthening of key market positions in the US, the airways company will soon be back to profitable position.

Also the US Airways said that it would give up its operations in Philadelphia-Beijing to the US government as part of its realignment moves. Flights going to Las Vegas will also be limited from 64 to 36 daily departures starting February 2010.

It will be recalled that the airline company has posted some $80 million net loss, the third straight quarter loss recorded.Meanwhile, the AMR said that it will be cutting some 700 jobs in its management and union workforce to cope up with the market turbulence. Most of the affected will come from the maintenance and engineering departments.