American Airlines Issues Job Loss Warning Notices To 11,000, Cuts Flight Schedule

As American Airlines gears to emerge from bankruptcy, the company has issued warning notices to over 11,000 staff stating that they may lose their jobs although it expects fewer job losses.

   on September 19 2012 5:35 AM

 

As American Airlines gears to emerge from bankruptcy, the company has issued warning notices to over 11,000 staff stating that they may lose their jobs although it expects fewer job losses.

About 40 percent of those who were served notices or 4,400 would be laid off in November and December, the Associated Press (AP) reported.

The airlines also announced that it was cutting flights by one or two percent for the rest of September and October.

"The notices will look worse than the actual layoffs," Jamie Horwitz, a spokesman for the Transport Workers Union, told Reuters.

Horwitz added that about 800 employees had agreed to leave American voluntarily, a move that would further reduce the number of layoffs.

The airlines said Sept.18 that notices were served to mechanics and ground workers in Dallas and Fort Worth, Texas; Tulsa, Oklahoma; Miami, New York, and Chicago among others.

In February, American outlined plans to cut 14,000 jobs as it considered streamlining its operations.

Earlier, in November, American Airlines, filed for Chapter 11 protection citing a need to decrease labor costs. The company signed non-disclosure agreements with carriers including US Airways Group as it evaluated potential merger.

Apparently, US Airways promised to preserve jobs if a merger with American were to occur and also won the support of unions that represent American ramp workers, pilots and flight attendants.

American flight cuts for September and October were partly due to an increase in pilot sick leaves and greater maintenance reports that led to delays, Reuters added.

On Sept.17, American Airlines cancelled 2.1 percent of the scheduled flights. Comparing with other operators, Mark Duell, vice president of operations at FlightAware, noted that cancellations were well above the rest of the U.S. airline industry for the past two weeks.

In a statement issued Sept.18, Keith Wilson noted pilots were "angry" as American began to impose new work terms that cut compensation and benefits. The union is conducting a strike vote through Oct.3 but has said it will not walk out unless it falls within legal ambit, according to Reuters.

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