Budget carrier Avelo Airlines is scaling back North Carolina operations, laying off 160 workers in the state, as part of a broader cost-cutting strategy.
The company plans to close its base and cut about 78 positions at Raleigh-Durham International Airport, the airline told state officials in a Jan. 7 letter. It will also close its Wilmington base, eliminating 80 positions there, the company said, citing “business needs.” The cuts — mostly flight attendants, crew and pilots — are expected to take place in March.
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Avelo has been working to shore up its balance sheet in recent months by cutting costs and restructuring debt.
The airline said last week it was closing the North Carolina bases, as well as streamlining operations in Charlotte. It is also closing a base in Arizona and reducing crew based in Connecticut, the Philadelphia area and Florida. The airline also plans to open a base in the Dallas area this year.
The airline also ended its participation in a charter flight program with the U.S. Department of Homeland Security, which the company said didn’t provide enough predictable revenue to overcome operational costs, according to several media outlets and a union representing some Avelo employees.
Avelo said it plans to continue serving RDU with flights from New Haven, Connecticut, and Rochester, New York. It also plans to serve Wilmington from Nashville, Tennessee, New Haven, Connecticut; Tampa, Florida; and Baltimore.
The changes to Avelo’s operations will impact flight schedules, the company said. It didn’t say when schedules will change, but it says the airline will contact anyone impacted directly.
Avelo had grown its footprint at RDU in recent months, expanding its international flight offerings, including a route to Montego Bay, Jamaica; the Dominican Republic; and the Bahamas.
The news of the layoffs comes after an Avelo aircraft clipped the winglet of a Southwest Airlines plane while it was being towed on New Year's Day at Raleigh-Durham International Airport. No one was injured and there were no flight delays due to the incident.