How the bankruptcy of AMR, the parent company of American Airlines,
would affect employees was laid out Wednesday afternoon, after the legacy
carrier announced that thousands would most likely lose their jobs.
AMR's new business proposal included a reduction of 13,000 employees. A
spokesman for American Airlines said the cuts would include approximately 400
pilots, 4,600 mechanics and related staff, 1,400 people in management and
supported staff, 2,300 flight attendants and 4,200 employees of fleet services
and other Transport Workers Union employees. Airline officials said those
numbers were estimates.
The spokesman said the airline was trying to permanently cut down on
$1.25 billion worth of annual employee costs, which was about 20% of employee
costs.
As part of the 13,000 cuts, American Airlines officials said 1,200 jobs
would be eliminated at Fort Worth Alliance Airport, and American Airlines
would close its presence there. The airline could not give specific numbers
as to the total number of potential jobs lost in the Metroplex.
The airline wanted to end benefit pension plans and replace them with
401K plans with a company match.
"There is nothing easy about bankruptcy. Ask every airline of all the
legacy carriers, everyone has been through it. Ask everyone of them, there is
nothing easy about this process. Nothing pleasant," said Bruce Hicks, a
spokesman for American Airlines.
Hicks believed the proposal would one day make the airline stronger, as
difficult as Wednesday might have been.
"There is no sugar coating the fact that jobs are going to be lost in
this process. There is no sugar coating it. But many more thousands of jobs
will be preserved through this business plan," Hicks told CW 33 News.
At this point what American Airlines had proposed was not set in stone.
Everything must be approved by the bankruptcy court and run by the unions.
"We begin the negotiating process today on our proposals. This will go
over for a period of time, not terribly long. We don't have a lot of time and
we hope to reach mutual agreement on all of these," said Hicks.
"We're going to try and reach a consensual agreement, because I still
believe that's the best option for us, but that may not be attainable," said
James C. Little, president of the Transport Workers Union.
Little said his team planned on mining through each piece of American
Airlines' new business plan.
"I'm not taking anything for granted. What looks good on paper, in
reality, may not be there," said Little.
Little said out of the 13,000 potential job cuts, 8,800 will come from
TWU members.
"It's going to be a major hit and not only does it affect just the
employees, a tremendous hit on their families, it's a tremendous hit on the
communities as well," he said.
Both had very different views on the meaning behind what took place
Wednesday.
"We presented a business plan that will allow us to return to prominence
in the industry. Industry leadership, sustained profitability and growth,"
said Hicks.
"There is a lot of it that I don't think is good for American. I
certainly don't think it is good for America," said Little.
