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American Airlines To Cut Back Staff
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Published: July 3, 2008
DALLAS - DALLAS - American Airlines says it could cut 900 flight attendant jobs as it reduces flights to cope with record high fuel costs.
The Fort Worth-based airline expects to reduce jobs for pilots and mechanics, too, but it hasn't released numbers yet.
American, the nation's largest carrier, said Wednesday that job cuts are necessary "to overcome near-term challenges and secure our company's long-term future."
In May, American announced it would cut capacity 11 percent to 12 percent later this year, retire some planes and cut an unspecified number of jobs.
Federal law requires employers to give 60 days notice of major layoffs, and officials of the flight attendants' union said they received a notice Wednesday of job reductions that could start Aug. 31.
Airline and union officials said they would try to reduce layoffs through attrition or by employees voluntarily taking leaves of absence or sharing jobs.
American has about 18,000 flight attendants, so 900 jobs represents 5 percent of the ranks.
"We've all been sitting on the edge of our seats waiting for a number," said Frank Bastien, a spokesman for the Association of Professional Flight Attendants. "Most of us were pretty pleased it wasn't higher."
Flight attendants had feared more job losses after the company said last week it would reduce management and support staff jobs by 8 percent. American has about 82,000 employees.
American said it reached agreement with the union to offer voluntary measures such as leaves of absence to U.S.-based flight attendants 50 and older with at least 15 years of service. The airline said it struck a similar deal with the Transport Workers Union, which represents mechanics and bag handlers.
"These are difficult, but necessary changes given the unprecedented challenges we face with overcapacity in the industry, skyrocketing fuel prices and a worsening U.S. economy," said American spokesman Tim Wagner.
American and sister airline American Eagle expect to spend more than $10 billion on fuel this year, up from $6.7 billion last year.
American is the latest airline to put a number on possible job cuts and reduced flying as a result of rising fuel costs and widening losses.
Continental Airlines is cutting 3,000 jobs and grounding 67 jets, and offered voluntary-departure packages - but no cash - to employees with at least 10 years of experience.
UAL Corp.'s United Airlines, the nation's second-largest carrier, plans to eliminate 950 pilot jobs and 1,600 salaried positions. Delta Air Lines is shedding 4,000 jobs, and US Airways Group is cutting 1,700.
Airlines are also raising fares and imposing new and higher fees for checking luggage, hauling a pet or sitting in an aisle seat.
Still, the industry's trade group, the Air Transport Association, predicts that U.S. airlines could lose $13 billion this year.
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