American Airlines News, American Airlines announces 13,000 job cuts. The parent company of American Airlines (AA) says it will shed 13,000 jobs - around 15% of its workforce.
AA's parent, AMR, wants to cut staff costs by 20% in a bid to reduce spending by $2bn (£1.26, 1.52bn euros) and raise revenue by $1bn a year.
AMR, which filed for bankruptcy protection in November, also wants to make changes to its staff pensions.
The 88,000 strong workforce is mostly represented by three main unions, which are opposed to the changes.
AMR said it plans to begin negotiations with the three unions shortly.
AMR lost $884m in the first nine months of 2011, and on Tuesday disclosed a $904m loss for December alone.
The company has lost more than $11bn since 2001.
AMR's chief executive, Thomas W Horton said in a letter to employees: "We are going to use the restructuring process to make the necessary changes to meet our challenges head-on and capitalise fully on the solid foundation we've put in place."
'Dismay and outrage'
Mr Horton said in December that the company would emerge from bankruptcy with fewer workers.
"I expect dismay and outrage from our membership as details of the proposal are made public," said Laura Glading, president of the flight attendants' union.
Mr Horton said the planned cost-cutting moves will include restructuring debt and aircraft leases, grounding older planes, and changing workforce contracts, some management jobs will also go as part of the plans.
The biggest cuts - about 4,600 - are expected to be among maintenance workers. Baggage handlers could be cut by 4,200, while some 2,300 flight attendants, 1,400 management employees and 400 pilots would also lose their jobs.
The company also wants union approval to drop its traditional pension plans, which pay a defined amount of pension and covers 130,000 employees and retirees, and replace them with a "retirement account".
AMR's company pension funds are underfunded by billions of dollars and the company said on its website on Wednesday that it could no longer afford them.
AMR is the latest of several large US airlines to go through Chapter 11 bankruptcy protection in an effort to reduce costs and debt.
Source:http://www.bbc.co.uk/news/business-16847278
.
.
Popular Posts
-
Alexandria Mills and dispute between Norway and China , The 2010 Miss World contest has been dragged into a diplomatic row between China a...
-
Bin Laden is dead Celebrations across America as U.S. special forces shoot dead terror chief in mansion hideaway in Pakistan * U.S. embassi...
-
Elizabeth Taylor Through the Years Elizabeth Taylor Through the Years Elizabeth Taylor Elizabeth Taylor has led a big life. ...
-
Alex Rodriguez Cameron Diaz Alex Rodriguez Cameron Diaz. Cameron Diaz & Alex Rodriguez call it quits "Bad Teacher" star Camer...
-
Fathers Day Recipes Kids Fathers Day Recipes Kids. 4 Father's Day Recipes Kids Can Make. Father's Day is all about making a big fus...
-
Wild reindeer foraging for food on the Arctic islands of Svalbard Reindeer UV Light Tests show Arctic reindeer 'see in UV' Arcti...
-
10 11 12 Baby Des Moines - For the first time on record, a baby has been born with pitch perfect numerical alignment. Laila Fitzgerald, b...
-
Strippers flocking to North Dakota, North Dakota Strippers Make More Money Than You Do North Dakota Strippers Make More Money Than You Do...
-
Rare Cyclops Shark Rare Cyclops Shark, Talk about a one-of-a-kind discovery—an extremely rare ‘cyclops’ shark has been confirmed in Mexico...
-
Robert Pattinson And Reese Witherspoon - Robert Pattinson is getting help from a friend and former co-star as he deals with the cheating sca...

