American Plans To Cut Another 1,200 Jobs

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

American Airlines layoffs job cutsDALLAS (AP) -- American Airlines wants to eliminate 1,200 nonunion jobs as it cuts costs while under bankruptcy protection.

That pushes the company's overall job-cut target to 14,200. It announced plans in February to cut 13,000 union pilots, flight attendants and ground workers.

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American, the nation's third-biggest airline, has about 73,000 workers.

American outlined the cuts for many nonunion workers on Wednesday. The company wants to outsource the jobs of all airport skycaps and cargo agents, cancel a planned lump-sum payment that was due for nonunion workers next year, freeze their pension plan, cut vacation and paid holidays, and reduce medical benefits.

The airline says it will close a reservations call center in Tucson, Ariz., and lounges at Washington's Dulles Airport and Kansas City International Airport.

The changes for agents and similar employees are expected to save $95 million, which American said would match the 20 percent cost-cutting targets for all other labor groups.

American and parent AMR Corp. filed for bankruptcy protection in November. AMR lost $2 billion last year, including restructuring costs, and has lost more than $10 billion since 2001.

In February, American announced plans to get rid of thousands of flight attendants and ground workers, as well as 400 pilots, and make other cost reductions designed to reduce annual labor costs by $1.25 billion. A hearing is scheduled to start Monday in New York on the company's request to throw out union contracts and impose new pay, benefits and work-rule terms.



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estimatorone

What will they be pushing for next - after the plane takes off, the captain will
put the plane on auto pilot and go back in the cabin to serve coffee and
peanuts?

April 20 2012 at 4:15 AM Report abuse rate up rate down Reply
petpetdonna

There are too many airlines anyway. Plus there are too many flights to the same destination leaving 15 minutes apart. Stop the flights that aren't full and save millions of dollars.

April 20 2012 at 12:34 AM Report abuse rate up rate down Reply
Ramona

If you need to get somewhere quickly... or if you need to leave the 48 at all... bus or train isn't going to suffice...

April 20 2012 at 12:22 AM Report abuse rate up rate down Reply
jgmrealestate

Bring in Gordon Gecko to get rid of those fat upper management directors that get those big bonuses. That is how this great airline can be Great again 1 day. If not it will be sold to Southwest or another group and people will lose thousands of jobs. I wish for sanity again,good luck

April 19 2012 at 10:00 PM Report abuse rate up rate down Reply
ponyboytul

I work for AA and have spent the last 15 years watching senior management run this company into the ground. We took a cut in pay and benifits of over 25% while mgmt got MILLIONS in bonuses. Now they will do away with our contract and take away more of our wages for those of us that still have jobs. They will be doing their heavy maintenance in third world facilities for pennies on the dollar.
Enjoy your flight and thank you for flying American Airlines!!!

April 19 2012 at 9:33 PM Report abuse +2 rate up rate down Reply
1 reply to ponyboytul's comment
Imbeohbe

I think AA could save millions of dollars and be able to keep all of the Pilots and Flight Attendents if they would just change the hotels the crews stay at. Dump the 5 star hotels and use the 3 star hotels that other successful airlines use. Sure the 5 star hotels are nice, but they are NOT necessary!

April 20 2012 at 2:30 AM Report abuse +1 rate up rate down Reply
Dave

Sorry Don, you are WAY OFF THE MARK, when it comes to unions and the airlines. Airline unions have taken massive paycuts over the past 2 decades to try and salvage the airlines. Meanwhile the Mgt. continues to pay out HUGE bonuses for running the companies into the ground. And then, the "Top Brass" (they should loss the Br) leave the company with Golden Parachutes (huge pay packages) and just go to another airline. These execs switch seats from one airline to another like a card game. Meanwhile, the execs at AA had perks like one of the most expensive homes in London on Downing Street (near the Prime Ministers) as a "party pad". (which they tried to hide in bkruptcy) And they paid out more to Mitt Romney's old company per month for "Advice" on how to "Restructure" their airline..(lay off workers). Do you REALLY need to pay $10mill a month to be told to lay people off? Isn't that what you as an executive are being paid for??? And shouldn't you take that money instead and use it to KEEP the employees? AA just wants to break the unions. They have already outsourced many of the jobs for "Foriegn Nationals'. For example, your Flight Attendant based in Miami, flying to Chicago, may actually be someone that they hired from South America, and brought to Miami. WHY? There are PLENTY of AMERICANS willing to do that job!!!! STOP IT AMERICAN!!! And Dan, THAT is not a UNION problem.

April 19 2012 at 9:14 PM Report abuse +1 rate up rate down Reply
1 reply to Dave's comment
trimules

Well said - as someone who has watched this same horrible play three times (Pan Am, Braniff and United) as both a union and managent employee over the last 45 years I can assure you the problem is not "the wicked unions". The true root cause is a completely unsolvable problem. Management has, over the years, competed by creating an unsustainable, insanely low fair structure and the public (who have no idea of the economics of running an airline anymore than I know how to run a winery ) is not only hooked on these far below product cost fares, but actually complain about being "ripped off by high prices". In 1968 you could get a box lunch "K fare" ticket from California to Hawaii for $220 RT. Today you can pay as little $360 for the same flight - an increase of 61%. In 1968 the cost of a Ford Fairlane was $2200 - a first class stamp was 6 cents - the minimum wage was $1.25 - gas was 34 cents a gallon - the median US household income was $7700 and a new house averaged $26,000. These prices have now gone up anywhere from 300% to 1250% and the airfare to Hawaii is only up 61%. Can you imagine the grocery store industry trying to survive on eggs at $1.00 a dozen , milk at $1.50 and bread at 37 cents a loaf? Well, that's what the same 61% would have them selling at today. Bought any nice new $40,000 houses lately? I think we were paying 25 cents a gallon for JP4 jet fuel - today's price is $3.24 a gallon and that rate, that ticket to Hawaii should cost $2851. Since there is simply no way to rectify this error, the industry will continue to try to make an unworkable business model work by screwing the employees at every opportunity and crying about the "terrible unions". I don't know about you, but I don't want to fly with a pilot who's making $18,000 a year. You get what you pay for and the public has been offered (and wants-first and foremost), Walmart Airways - Always the LOW Price - Always. You want it - you got it.

April 20 2012 at 12:23 AM Report abuse rate up rate down Reply
1 reply to trimules's comment
petpetdonna

If people want to fly they should be paying more.

April 20 2012 at 12:37 AM Report abuse rate up rate down
jimjdb5591

The cost of fuel, cattle car seating, ridiculous security screening has turned flying into a miserable experience. It's easier for me to drive than take a 2 hour flight, by the time I get to the airport, park go thru security and hope I get where I'm going without delays. Take a bus or a train

April 19 2012 at 9:02 PM Report abuse -1 rate up rate down Reply
1 reply to jimjdb5591's comment
seattlewkr

Same here. If there's any way we can fit in driving instead of flying, we do it now.

I HATE traveling by air now. Used to be great. Now it's anything but great.

April 19 2012 at 11:32 PM Report abuse rate up rate down Reply
rep9347

Pathetic airline, Gerard Arpey jumps ship and gets a bazillion dollar departure package, this after running American into the ground. Another example of why the govt needs to keep their hands on businesses especially big ones. AA is going to get bought up by US Airways, pilots union has already agreed to the proposal they cave to them. AA is going to be lucky to even be an airline in the next few months after US Air takes them over in what will end up being a hostile take over

April 19 2012 at 8:28 PM Report abuse rate up rate down Reply
velasura

Until someone invents a way of flying planes on something other than jet fuel, or if the price of oil and all the products that come from it, including jet fuel comes all the way down, then the airlines will continue to find ways to pass the cost on to the passengers or go out of business. Sad.

April 19 2012 at 8:03 PM Report abuse rate up rate down Reply
candalou2

but wait, the economy has improved, some say.,depends who you talk to.

April 19 2012 at 6:45 PM Report abuse +1 rate up rate down Reply

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