Hopenchange: Fort Worth-based American Airlines Cutting 13,000 Jobs, Possibly 15,000 Crew, Pilot, & Cargo Jobs Will Be Slashed Nationwide
Posted By Vicki McClure Davidson on February 2, 2012
American Airlines filed Chapter 11 in November - now 13,000 or more jobs will be cut
In November, American Airlines filed for bankruptcy protection. Now, as many as 15,000 jobs will be cut.
This is the face of “hopenchange”…
Reported by NBCDFW.com, AA to Cut 13,000 Jobs, Close Alliance Facility:
American Airlines parent company AMR Corp. said Wednesday it would cut 13,000 jobs and close its Fort Worth Alliance Airport maintenance hub as part of a five-year plan to save $3 billion per year.
NBC 5′s Scott Friedman was the first to break the story early Wednesday morning that the Fort Worth-based airline would cut as many as 15,000 jobs nationwide.
Thomas Horton, Chairman and CEO, released a letter to employees Wednesday that highlighted the major changes designed to help the carrier emerge from bankruptcy a stronger airline.
Chief among those changes are staff reductions that are expected to save the company $1.25 billion annually and revenue enhancements worth another billion dollars. The remaining savings will come from altering route structures, capacity and replacing an aging fleet. The airline also hopes to boost revenue by increasing departures out of hubs in Dallas-Fort Worth, Chicago, Miami, Los Angeles and New York by 20 percent over the next five years.
The 13,000 cuts include 1,400 management and support staff; 400 pilots; 2,300 flight attendants; 4,600 maintenance and related; and 4,200 fleet service and other TWU employees; NBC News confirmed early Wednesday afternoon.
No decision has been made on agents, representatives or planners.
“One of the most difficult outcomes of this process is our need to reduce the size of our workforce to better align with our streamlined and more efficient operations,” said Jeff Brundage, American Airlines senior vice president for human resources. “The business plan and our proposals outline a total reduction of approximately 13,000 employees across our company.”
From Miami Herald, American Airlines to lay off thousands, but impact on Miami is unknown:
One of Miami-Dade’s largest private employers proposed massive layoffs Wednesday, but American Airlines hasn’t yet spelled out what those cuts mean for its nearly 9,000 workers in South Florida.
Under the plan to reduce annual costs by at least $2 billion, at least 13,000 employees would lose their jobs at the nation’s third biggest airline, which filed for bankruptcy along with parent company AMR and affiliate American Eagle in November. That amounts to about 15 percent of the company’s workforce.
Although South Florida jobs likely will be lost, Miami International Airport’s largest carrier said it expects to increase flights here in the near future.
American Eagle, AMR’s regional carrier, won’t make contract proposals to its unions “for a few weeks,” Bloomberg News reported.
It’s unclear when layoff notices would be sent to American Airlines employees, since the proposal still must go through union negotiations. If negotiations are unproductive, the company can ask a bankruptcy court to impose the plan.
The company will also reduce costs by 20 percent across all work groups as part of its plan to emerge from bankruptcy reorganization and return to profitability — a goal that has been elusive since 2007.
“There is no sugarcoating the effect on our people,” American Airlines Chairman and CEO Tom Horton wrote in a letter to employees. “While we are now firmly on a path to a successful growing future, we must acknowledge the near-term pain these changes will require. That’s especially true because we will end this journey with many fewer people.”
While specific job cuts in South Florida are not yet known, American’s proposal will hit members of the Transport Workers Association at Miami International Airport who handle cargo and mail, as well as crew chiefs, said Sidney Jimenez, president of the TWU’s local Chapter #568, which covers Miami, Tampa and Fort Lauderdale.
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