ARC NEWS
Southwest lays off 15% of corporate workforce
February 19, 2025
Southwest Airlines has eliminated around 1,750 corporate roles, a move the US major estimates will save it $210 million in 2025 and $300 million in 2026. The workforce reduction centres on corporate and leadership positions and represents around 15% of corporate positions, Southwest says, adding that the job cuts encompass 11 senior-leadership roles. The layoffs will be "substantially complete" by the end of 2025's second quarter, it adds. "This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions," Southwest chief executive Bob Jordan states. "We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster and more agile organisation." The corporate-workforce reduction follows a series of significant personnel changes at the Dallas-based carrier in the wake of the 24 October 2024 settlement between its board and activist investor Elliott Investment Management. At that time, five of Elliott's nominees were approved as board members. Former Southwest chief executive Gary Kelly's previously announced retirement as board chair was moved up to 1 November from spring 2025. In early January, Southwest disclosed that chief financial officer Tammy Romo would be retiring in April, after serving the US major in that role since 2012. A month later, in February, the carrier named former Breeze Airways president Tom Doxey as Romo's successor. Also set to retire in April is chief administration officer Linda Rutherford. Two Southwest board members, Eduardo Conrado and Elaine Mendoza, notified the company on 4 February that they would not stand for re-election at an upcoming annual meeting of shareholders.


FAA layoffs total 'less than 400': US transportation secretary
February 19, 2025
US Department of Transportation secretary Sean Duffy has confirmed in a post on social media platform X that the federal government has "let go" of fewer than 400 employees at the Federal Aviation Administration. "Here's the truth: the FAA alone has a staggering 45,000 employees," Duffy writes in a 17 February X post. "Less than 400 were let go, and they were all probationary, meaning they had been hired less than a year ago. Zero air traffic controllers and critical safety personnel were let go." Duffy adds that previous US transportation secretary Pete Buttigieg "chose to use this amazing department – that is so critical to America's success – as a slush fund for the green new scam and environmental justice nonsense". David Spero, national president of the Professional Aviation Safety Specialists (PASS), AFL-CIO, stated on 15 February that the union is "troubled and disappointed by the administration's decision to fire FAA probationary employees PASS represents without cause nor based on performance or conduct". He notes that several hundred FAA employees on the evening of 14 February began receiving termination emails "sent from an 'exec order' Microsoft email address, not an official .gov email address". "These employees were devoted to their jobs and the safety critical mission of the FAA," Spero says. "This draconian action will increase the workload and place new responsibilities on a workforce that is already stretched thin." US senator Maria Cantwell, ranking member of the Senate Commerce Committee, states that "now is not the time to fire technicians who fix and operate more than 74,000 safety-critical pieces of equipment like radars, navigational aids and communications technology". Cantwell adds: "The FAA is already short 800 technicians and these firings inject unnecessary risk into the airspace – in the aftermath of four deadly crashes in the last month. The FAA's safety workforce needs to be a priority for this administration." The Democratic senator from Washington state on 6 February had sent a letter to Duffy criticising what she says is his "intention to involve Elon Musk in the FAA's safety systems or process". She adds in the letter: "FAA has the legal responsibility for safety oversight of companies with commercial space transportation licences. Elon Musk's SpaceX rocket launches share the airspace with commercial airplanes, and the FAA has the responsibility for keeping the entire airspace safe. SpaceX has been fined by the FAA for failing to comply with specific requirements in its launch licence. "Mr Musk, in turn, called for the firing of Mike Whitaker, the FAA administrator who the Senate confirmed 98-0 because the FAA issued a fine against SpaceX for not following the rules. We have ethics and recusal laws for a reason – to prevent corporate interference in protecting the public interest." Cantwell notes in the letter that the federal government is "now without a permanent FAA administrator to lead us through the biggest US air crash we have had in years" – a reference to the fatal mid-air collision on 29 January of a PSA Airlines MHIRJ CRJ700 and a US Army Sikorsky H-60 Black Hawk helicopter. Whitaker on 20 January stepped down as FAA administrator, a departure that coincided with the day of Donald Trump's second inauguration as US president. Trump subsequently named former FAA employee Chris Rocheleau acting administrator of the regulator.


BA to acquire Boeing MRO hangar at Gatwick
February 18, 2025
British Airways will acquire Boeing's hangar facility and MRO business at London Gatwick airport. The IAG-owned carrier says it is establishing a new wholly owned engineering subsidiary named British Airways Engineering Gatwick (BAEG) to join its existing UK engineering operations in South Wales and Glasgow. The staff employed by Boeing at the facility will be transferred to the new subsidiary, subject to consultation, in the second quarter of this year, adds BA. It aims to recruit additional employees and grow this new facility at Gatwick in the longer term. Taking over the Boeing facility will enable it to continue to carry out minor maintenance on Boeing 777s at the airport, says BA. This increased capacity will allow the airline to in-source some scheduled heavy-maintenance work on its Airbus A320 and A321 fleet. Additionally, it will boost its capacity to carry out unscheduled repair work, as well as, BA foresees, providing additional maintenance resilience and relieving capacity challenges at other locations across its network. Carrying out more 777 and A320 and A321 maintenance at Gatwick will reduce the need to ferry these aircraft to other operational bases, supporting sustainability goals, adds BA.


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