Hawaii’s second largest carrier Island Air has responded to record financial losses by slashing its workforce by 20%.
Island Air CEO Dave Pflieger announced the measures in a communication to employees which will also include indefinitely postponing new aircraft deliveries.
After posting losses of $21 million, the airline will start laying off staff from June 1
"Impacted employees will be notified within the next few days, with exit dates beginning in June," the letter said.
Pflieger also took a swipe at unions for refusing to renegotiate collective agreements.
"We did not ask for job cuts, wage reductions, or benefit or retirement concessions. Instead, we simply asked for changes that would improve productivity and provide certainty on costs."
Earlier this week Island Air tweaked its flight schedule by ending its Kauai service and reducing the frequency on the Honolulu-Lanai route by more than half.
Pflieger said the company hopes the move "will pave the way for a brighter future for Island Air in the tomorrows that lie ahead."
