AMERICA WEST Airlines is to shed around 1,100 jobs as part of a wider programme to cut costs to compete in the low-fares US airline market.

The streamlining plan aims to trim around $31 million off the carrier's $1.3 billion costs this year. The savings are then targeted to rise to $40 million a year. America West's 11,500 workforce will be reduced by around 10%.

The carrier has also unveiled a new employee-benefit scheme, which it says will be more competitive with those of other low-cost airlines. Up to 25% of base pay will be awarded to employees if key profit targets are met. A change in the scheme has been expected since the airline emerged from Chapter 11 bankruptcy protection in August 1994.

Source: Flight International