UPS reduces 2010 pilot furloughs by 70 but defends rationale for cuts

UPS Airlines, which furloughed 54 pilots in May (ATW Daily News, May 21) and had planned to furlough a total of 300 flight deck crew by year's end, said Friday it will reduce the number of furloughs this year by 70 to 230. "There continues to be mixed economic signals and we believe that the recovery will be gradual," said UPS spokesperson Mike Mangeot. But the reduction in pilot cuts is possible owing to "our improving economic conditions as reported in our second-quarter earnings." The company posted a 90% increase in second-quarter net income to $845 million (ATW Daily News, July 26).

"If our 2010 growth continues, the furlough could be reduced even more in the future," he added. The carrier's pilot workforce numbers about 2,800. Mangeot noted that "the business conditions driving the furloughs still exist," namely the fact that UPS is flying 214 aircraft currently compared to 262 in 2003 and all older aircraft requiring a flight engineer have been "permanently retired."

The Louisville-based cargo carrier said it is flying approximately 10% fewer flight hr. today compared to 2007. "The bottom line is that we still have more pilots than we need to operate our airline," Mangeot said. "On average, the employment cost for each pilot in the furlough group is $185,000 per year in wages and benefits. Today’s economic environment prevents our company from carrying hundreds of excess employees at such a high cost."