American Airlines Parent Company AMR Corporation Expects 4,400 Job Cuts, Warns 11,000

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DALLAS (AP) - American Airlines is sending layoff warning notices to more than 11,000 employees although a spokesman says the company expects job losses to be closer to 4,400.

The notices went out to mechanics and ground workers whose jobs will be affected as American goes through a bankruptcy restructuring.

American Airlines spokesman Bruce Hicks said Tuesday that fewer than 40 percent of those getting notices will lose their jobs. Hicks said federal law requires the company to notify anyone whose position could change including those who could get "bumped" by more-senior employees whose jobs are eliminated or outsourced.

American said in February that it planned to cut 14,000 jobs, including 13,000 held by union workers. But the number was reduced as American negotiated new labor contracts and gave bonuses to flight attendants and ground workers who quit.

Separately the leader of the pilots' union blasted the company, saying it is "paying lip service" to negotiating a contract while using the bankruptcy process to wring punitive cost-cutting concessions from pilots.

Eight other labor groups approved long-term contracts that will help AMR (AAMRQ) cut annual labor spending by about $1 billion. Pilots, however, voted overwhelmingly against the company's last contract offer, and a federal bankruptcy judge allowed American to impose new pay and working rules on pilots.

The acting president of the Allied Pilots Association, Keith Wilson, said in a message to members that he would meet this week with Transportation Secretary Ray LaHood and other top officials in the Obama administration and Congress. The union has asked federal officials to approve steps that could eventually lead to a strike, but that permission hasn't been granted.

Still, pilots are holding a strike-authorization vote. In the meantime, American has seen a spike in flight cancelations partly because pilots are calling in sick more often than usual, Hicks said.

American and parent AMR Corp. filed for bankruptcy protection in November.

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groman00

Neat

April 23 2013 at 11:48 AM Report abuse rate up rate down Reply
Jud

News flash to Management:
Why don't you looking at cutting 3 or 4 executive positions, with the cost savings you can save 4000 jobs for your work force.

September 19 2012 at 3:11 PM Report abuse rate up rate down Reply
richarant

Lost cause.

September 19 2012 at 2:54 PM Report abuse rate up rate down Reply
hb341

CEO to Board - We have a problem. We need to lay-off 4400 employees in the next few months. How do we decide who goes and who stays?
Board Member - Tell 11,000 employees that their jobs are on the line and then sit back and see who "KISS THE MOST ASS" than fire the 4400 who "KISS THE LEAST ASS"!
Just saying...

September 19 2012 at 2:40 PM Report abuse rate up rate down Reply
smaselli12

Wow, we have been on a steady decline since Obama got in...............how much more do you want??

September 19 2012 at 1:51 PM Report abuse rate up rate down Reply
Ginger

Oh great, now BHO can bail out another company and leave taxpayers holding the bag. Hope and change.

September 19 2012 at 1:45 PM Report abuse +1 rate up rate down Reply
GP49

Hey its ok the governments do another QE and thats always fixed things! I'll stick with buying physical gold not etfs but in my hand.........

September 19 2012 at 1:17 PM Report abuse rate up rate down Reply
Richard

The business model of legacy airlines is gone forever. Discounters like Southwest who run their operation like a cattle car have taken over and will continue to succeed. The wealthy have long abandoned First Class in the airlines and are either purchasing a fractional share, owning, or chartering their own jets.

September 19 2012 at 12:51 PM Report abuse rate up rate down Reply
hgeorgech

OK, how many among AMR's highest paid 100 execs got the memo?

Is zero close to the answer?

September 19 2012 at 12:40 PM Report abuse rate up rate down Reply
beverlyamy1

its bushs fault......oh wait.

September 19 2012 at 12:22 PM Report abuse -1 rate up rate down Reply