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AMR may lay off or transfer more than 600 workers
Thu Apr 6, 2006 10:50 AM ET
NEW YORK, April 6 (Reuters) - American Airlines has warned more than 600 aircraft maintenance workers at U.S. airports that they could be laid off or transferred to other airports or bases, a spokesman for the airline said on Thursday.
The workers, who perform the overnight work known as "line maintenance" rather than the more thorough overhauls done at the airline's facilities in Tulsa, Oklahoma, and elsewhere, could be laid off or shifted as part of a quest for increased efficiencies, said American Airlines spokesman Tim Smith.
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AMR.N (AMR Corp)
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Change: -0.57
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AMR may lay off or transfer more than 600 workers
American Air CFO says labor costs must be cut more
U.S. airlines' strong revenue outweighs oil, for now
The moves could affect workers at airports in 24 cities, including Newark, New Jersey; Los Angeles; Atlanta, Georgia; San Francisco and Washington, D.C., Smith said.
He said a final decision would not be made until late May.
American has been trying to find ways to reduce costs without asking for further givebacks from its unions, who agreed to substantial wage cuts in 2003 when the airline was on the verge of bankruptcy.
As other airlines have cut workers' pay through bankruptcy or consensual deals in recent years, American, controlled by AMR Corp. (AMR.N: Quote, Profile, Research), has watched its costs creep up relative to those of most of its major rivals.
The No. 1 U.S. carrier will have to find more expense cuts to stay competitive, its new chief financial officer, Thomas Horton, said in a conference call on Wednesday.
The Transport Workers Union of America, which represents the workers, did not immediately return a call seeking comment.
Some of the workers could still end up keeping their jobs in their current locations, Smith said.
© Reuters 2006. All Rights Reserved.
Thu Apr 6, 2006 10:50 AM ET
NEW YORK, April 6 (Reuters) - American Airlines has warned more than 600 aircraft maintenance workers at U.S. airports that they could be laid off or transferred to other airports or bases, a spokesman for the airline said on Thursday.
The workers, who perform the overnight work known as "line maintenance" rather than the more thorough overhauls done at the airline's facilities in Tulsa, Oklahoma, and elsewhere, could be laid off or shifted as part of a quest for increased efficiencies, said American Airlines spokesman Tim Smith.
FACT BOX
AMR.N (AMR Corp)
Last: $27.53
Change: -0.57
Up/Down: -2.03%
AprJulOctJan
Quote
Full Chart
Company Profile
Analyst Research
News for AMR.N
AMR may lay off or transfer more than 600 workers
American Air CFO says labor costs must be cut more
U.S. airlines' strong revenue outweighs oil, for now
The moves could affect workers at airports in 24 cities, including Newark, New Jersey; Los Angeles; Atlanta, Georgia; San Francisco and Washington, D.C., Smith said.
He said a final decision would not be made until late May.
American has been trying to find ways to reduce costs without asking for further givebacks from its unions, who agreed to substantial wage cuts in 2003 when the airline was on the verge of bankruptcy.
As other airlines have cut workers' pay through bankruptcy or consensual deals in recent years, American, controlled by AMR Corp. (AMR.N: Quote, Profile, Research), has watched its costs creep up relative to those of most of its major rivals.
The No. 1 U.S. carrier will have to find more expense cuts to stay competitive, its new chief financial officer, Thomas Horton, said in a conference call on Wednesday.
The Transport Workers Union of America, which represents the workers, did not immediately return a call seeking comment.
Some of the workers could still end up keeping their jobs in their current locations, Smith said.
© Reuters 2006. All Rights Reserved.
