UPS to Begin Pilot Layoffs

On Sunday, UPS will do something it has never done before: layoff pilots who fly for its air-delivery service. 54 pilots will receive pink slips on Sunday, and 300 or more are expected to lose their jobs by 2012. The unhappy milestone comes amid reports of an improving economy, but UPS has been planning to lay off pilots for years due to multiple factors.

The UPS fleet currently consists of 214 planes, down nearly 20% from the 262 it had in 2003. Fewer planes obviously leads to fewer potential flying hours. Additionally, a 2007 ruling by the FAA bumped the mandatory retirement age for commercial pilots from 60 to 65. The result for UPS has been a lower attrition rate and a larger payroll.

In addition to those planned for Sunday, another 116 layoffs are possible this year, said UPS spokesman Mike Mangeot.