American Airlines Latest News Unveils Major Layoffs

Latest News: American Airlines is forecasting a layoff of a minimum of 10,000 employees.

American Airlines, who is a affiliate parent company of AMR Corporation, will be letting go of approximately 8,800 ground employees and mechanics, 2,300 flight attendants, 1,400 management and support staff, and 400 pilots.

The AMR Corporation is expecting to let go of as many as 15,000 employees, in order to move forward from their Chapter 11 bankruptcy.

They will begin to outsource the maintenance of their aircraft’s in order to keep the company afloat. The union suspects that the airline will employ overseas at lower-cost facilities. This is a common practice for major airlines, United-Continental, Delta Air Lines, and Southwest Airlines already do this as a standard practice.

In December 2011, the airline company had about 74,000 employees and an additional 14,000 at American Eagle, which is their regional carrier, and they reported a loss of $904 million.

According to bond analyst, Vicki Bryan, at Gimme Credit LLC in New York, the airline is expected to eliminate up $2 billion in order to increase competitive labor costs.

In December 2011, the airline company had about 74,000 employees and an additional 14,000 at American Eagle, which is their regional carrier, and they reported a loss of $904 million.

In addition, to laying employees off, the company will be expecting the remaining workers to pay more for their medical benefits, and work an increased amount of hours according to aviation research engineer, William Swelbar.




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