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AirTran Airways to cut pay for all employees

Staff Report

Thursday, July 03, 2008

ORLANDO, Fla. — AirTran Airways said it will cut pay by 15 percent for its senior management and has asked employee unions to accept pay cuts of 5 to 13 percent, because of record-high fuel prices.

The pay cuts would affect all of the airline's 8,900 employees.

If the unions approve the pay reductions, they would take effect in August, AirTran spokeswoman Judy Graham-Weaver said in an e-mailed statement Thursday, July 3. Unions represent about 48 percent of the Orlando-based airline's work force, including pilots, mechanics, flight attendants and aircraft dispatchers.

AirTran's goal is to cut its overall pay rate by 10 percent for six months. The company said it will then review the situation.

The employees were notified Wednesday in a memo from Bob Fornaro, AirTran's president, chairman and chief executive officer.

Fuel costs now account for 50 percent of AirTran's operating expenses and have doubled from a year ago, Graham-Weaver said.

AirTran, along with Delta Air Lines, is consistently among the top two busiest airlines serving Dayton International Airport. Both carriers have network hubs in Atlanta, a popular destination from business travelers from the Dayton region.

The soaring costs of aviation fuel have already prompted some other airlines to either cease operations or lay off employees, reduce the number of routes flown, and park their older, less fuel-efficient aircraft.

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