Quantcast
 
New book by Larry Connors Click here Improve your trading - See how


 

American Airlines to cut 1,500 jobs in carrier's maintenance division

Mon. July 21, 2008; Posted: 12:34 PM
Stocks RSS
Jul 19, 2008 (The Kansas City Star - McClatchy-Tribune Information Services via COMTEX) -- AMR | Quote | Chart | News | PowerRating -- American Airlines will cut 1,500 jobs in its maintenance division as part of the 6,800 job cuts it announced two weeks ago.

It was not immediately known how many of those jobs would be in Kansas City.

American, which is reducing its fleet of aircraft, did not break down the cuts by location, saying those decisions had yet to be made. A spokeswoman for the airline did say Friday that the total would break down to 1,300 mechanics and 200 management and support staff.

Besides the former TWA overhaul base near Kansas City International, American has maintenance hubs in Tulsa, Okla., and Fort Worth, Texas, plus many smaller bases in the country. Besides maintaining American's jets, workers at the hubs work on jets brought in by other carriers.

American has about 14,000 employees in its maintenance division, including management and support staff, and 13,000 of them are represented by the Transport Workers Union.

In Kansas City, American has more than 1,000 workers, including about 885 mechanics and other hourly employees at the maintenance base and airport.

Gordon Clark, president of Transport Workers Union Local 530 in Kansas City, said the company had not provided additional information about where the jobs would be eliminated. The airline, however, is in the midst of offering an early-retirement buyout program that could reduce the effect of an involuntary layoff, he said.

"With our senior work force here in Kansas City, it's possible we could minimize the number of forced layoffs if enough people take the retirement," said Clark, adding that workers have through most of August to decide whether to accept the package.

The Kansas City overhaul base lost about 800 jobs in 2004 and 2005, the last time American made cuts to cope with deteriorating financial conditions. Since then, city officials secured a new long-term lease for American to continue using part of the massive facility. Also, more work has returned to the base -- both American's and outside, third-party work -- which has slowly added more jobs to the site.

But as fuel prices soared through 2008, the Fort Worth-based airline, part of AMR Corp., announced two weeks ago it would shed 8 percent of its work force -- the 6,800 jobs -- to cope with financial distress brought on by record fuel costs and a weakening economy. The company earlier said those cuts would include 900 flight attendant jobs and 200 pilot positions.

American plans to cut its U.S. flying by up to 12 percent after the busy summer travel season ends.

On Wednesday, American announced it would speed up the retirement of its 34 Airbus A300 aircraft by the end of next year instead of waiting until 2012. American and its feeder carrier, American Eagle, will ground 103 planes this year.

The Kansas City maintenance base works on American Eagle regional aircraft, but it currently does not do maintenance on the jets American is retiring later this year, the A300s and McDonnell Douglas MD-80s.

Clark said neither the company nor the union was to blame for the latest round of cuts.

"Our economy is what it is, and fuel prices are just killing our industry and our jobs," he said. "It's frustrating because there's not a whole lot of control we have over those things."

The Associated Press contributed to this report.

To see more of The Kansas City Star, or to subscribe to the newspaper, go to http://www.kansascity.com. Copyright (c) 2008, The Kansas City Star, Mo. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

For full details on Amr Corporation (AMR) click here. Amr Corporation (AMR) has Short Term PowerRatings of 4. Details on Amr Corporation (AMR) Short Term PowerRatings is available at This Link.

    


More News:   Market Updates | Stock Alerts | All Trading News | Stock Index

Email
Print
Archives
Feedback
Email Article Link
Close X
Recipients email address
Your name
Your email
Add a note (optional)




Stocks RSS





Related News [AMR]
PREMIER SPONSORED LINKS
TRADE CENTER
 
The TradingMarkets Directory
RELATED SITES
Nothing but forex
Please call 1-213-955-5858 ext. 1

About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403

© Copyright 2009 The Connors Group, Inc.


All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.

© 2009 The Connors Group, Inc.