Jaunted

The head's up to employees is required by a federal law called the Worker Adjustment and Retraining Notification Act. That's the same rule that former Skybus employees allege their bosses violated when the LCC collapsed in April, leaving them jobless overnight. If Spirit is complying with the WARN Act, that probably means there's no chance that the carrier can secure additional operating capital before August 1--and that job cuts are the only way to stay in business.

Meanwhile, rumor has it that United is planning some staff cuts, too. In the wake of failed merger talks with US Airways, the airline has to do something to save cash: United lost $537 million the first quarter of this year. Up to 25 percent of the carrier's employees could be laid off by this fall, and more than 100 planes could be sold off by 2009; that's more than 20 percent of its current fleet.

Of course we can't forget American Airlines. Hundreds of workers at the carrier's hub in San Juan, Puerto Rico have already been let go. And with plans to trim up to 12 percent of its total capacity, American clearly won't need everyone on hand by the end of this year.

If there's any good news, it's that the US Department of Labor knows how bad things have gotten. The agency just sent $5 million to Hawaii to assist workers left jobless after ATA and Aloha both shut down earlier this year.

Related Stories:
· Job Cuts ahead for Spirit Airlines [Miami Herald]
· Skybus Sued over Layoffs [Columbus Dispatch]
· Update on All Things United [PlaneBuzz]
· Feds Grant $5M to Aid Laid off Workers [AP, via KITV]
· Airline Bankruptcy coverage [Jaunted]

[Photo: Cubbie_n_Vegas]