Coronavirus: Dayton airport employees told to brace for layoffs as pandemic impacts travel

DAYTON — Employees of the Dayton International Airport have been told to expect layoffs due to an imbalance in the financial structure at the airport, caused in part by declining travelers amid the coronavirus pandemic, according to a letter sent to city employees and obtained by News Center 7.

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The city cites a compound financial problem at the airport as a reason for the layoffs. Already struggling financially before the pandemic due to the loss of flights and carriers like AirTran and Southwest, the city injected over $3.7 million in cash reserves over the last two years to cover expenses at the airport. But with an estimated loss of 95 percent in travel volume since the pandemic started, the city said cash reserves will be depleted within six months without economic action at the airport.

In the letter, City Manager Shelley Dickstein said difficult decisions are needed for the airport to reduce expenses and ultimately reduce personnel. The city has implemented a “Voluntary Separation Program” for airport employees only that will “inform the need for further personnel reductions through layoffs,” Dickstein said in the letter.

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“I recognize that layoffs are never ideal and it is truly heartbreaking to be looking at layoffs amid this crisis. Please know that we are working hard to minimize the number of our members impacted but have little choice to avoid it all together,” Dickstein said.

Additionally, 21 unfilled positions at the airport have been eliminated and will not be filled.

“It is essential we position the airport for an 18-24 month recovery,” Dickstein said.

The city also cited anticipation of less income tax revenue caused by businesses closures and unemployment applications as another reason for financial action at the airport and the city overall.

Federal transportation officials announced $14 million in federal funds will be distributed to the Dayton International Airport and Wright Brothers Airport. The funds were a part of $10 billion in funding overall that would go to airports across the nation, according to Transpiration Secretary Elaine Chao.

News Center 7 is working to learn the impact of the federal funds, including if they will save jobs at Dayton International Airport.

While Dickstein’s announcement was focused mainly on the airport, all city departments were asked to identify what an 18 percent reduction in their overall budgets would look like to help prioritize activities for the rest of the year. The city has also frozen all non-emergency hiring.

“These last two months have been difficult for many and unfortunately the next few months will not be any easier. But we will get through this together and I will keep you informed as we do,” Dickstein said.

We’ll continue to update this story as we learn more.

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