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US Airways to cut 600 jobs

  • Story Highlights
  • Sluggish demand, decline in revenue force cuts in flight schedule, COO says
  • US Airways staff is too large for reduced schedule, Robert Isom says in memo
  • Airline will close ticket office in Phoenix, Arizona, outsource ramp service functions
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(CNN) -- US Airways announced Tuesday that it will cut 600 jobs this fall because of the economy.

The Tempe, Arizona-based airline will shutter its US Airways Club at the Las Vegas, Nevada, airport as well as the city ticket office in Phoenix, Arizona, Chief Operating Officer Robert Isom said in a memo to employees.

In addition, Isom said, the company will reduce staff at the Phoenix US Airways Club and outsource ramp service functions in nine stations, most of which support US Airways Express regional airlines.

Citing sluggish demand and a decline in revenue, Isom said that the airline shrank its flight schedule last year and improved operational efficiency and that the US Airways staff is too large for the reduced schedule and other changes.

He said that the airline had hoped attrition would ease the overstaffing problem but that the number of staff members leaving or retiring had fallen off since last year.

"We find ourselves with more employees than our operations requires," he said.

CNN's Jennifer Rizzo contributed to this report.

All About US Airways Group Inc.

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