April 18 American Airlines plans to eliminate
another 1,200 jobs as part of its plan to cut costs in
bankruptcy, the company said in a letter to employees on
Affected jobs include non-union passenger and cargo agents,
sky caps, and baggage service workers at smaller airports,
including Memphis, Reno, Sacramento and Portland, Oregon.
American previously announced plans to eliminate 13,000
union jobs, or roughly 15 percent of its workforce, as part of
an overall drive to save roughly $1.25 billion in annual labor
The latest cuts would come on top of that, the company said.
As part of Wednesday's announcement, No. 3 American said it
would also close its southwestern reservations center in Tucson.
Those workers, however, will be offered jobs elsewhere or set up
as home-based employees.
American will also close its Admirals Clubs at Washington
Dulles and Kansas City.
The latest changes, which do not require approval of the New
York bankruptcy court, are expected to take place within the
next few months, American said.
Other major rivals also cut thousands of jobs when they
restructured in bankruptcy several years ago, emerging as leaner
and tougher competitors.
AMR, the parent of American Airlines, filed for bankruptcy
The company has also sought permission from the court to
void union contracts, including those covering pilots, flight
attendants and ground workers.
A hearing on that motion is scheduled for Monday.