Reno Air to close Reno reservations center, move it to Las Vegas center

Officials of the Reno-based, low-fare carrier said employees at the Reno office can either transfer to the Las Vegas center or accept openings in other Reno Air cities.

They said the consolidation will save more than $1 million a year, and take effect Dec. 10, when the lease at the Reno center expires.

The office's closure is the latest in a series of cost-cutting moves designed to restore the airline to profitability.

"It's probably the last big thing that will happen," said Joseph O'Gorman, Reno Air's chief executive officer and president. "It's the right thing for us to do."

Since taking over the helm on Feb. 19, O'Gorman has slashed 330 jobs or 15 percent of the work force, ended service to six unprofitable cities and replaced his top managers.

The moves apparently are paying off for the airline, which rebounded to profitability in the second quarter of this year after losing $8.6 million in the first quarter and $12.3 million last year.

Next week, the airline plans to announce record profits for the third quarter that ended Sept. 30.

Bev Grear, Reno Air's senior vice president of operations, said the consolidation of reservations offices also is being made because of Las Vegas' larger employee pool.

The Las Vegas call center opened in May 1997. The facility now has about 175 employees, but was built to handle 300.

Reno Air employees who choose to move to Las Vegas will have to pay their own moving expenses, but will get two days with pay to make the transfer, Grear said.

Those who choose to leave the company will be offered severance pay based on their time of service. Employees have until Dec. 1 to decide.

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