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Tue, Apr 22, 2003

Did You Miss AMR's Management Cuts?

Managers, Support Staff at Carrier Reduced

American Airlines began the painful process of implementing the $1.8 billion in cost savings achieved by its employees through historic accords over the past several weeks.

As previously announced, the carrier reduced the size of its management team Thursday by a further 5 percent. Additionally, American currently has a working group reviewing various management processes throughout the airline with a goal of reducing management ranks yet another 5 percent by July 1.

Managers had a one in three chance of finding office shuttered...

Leading up to Thursday, American has already cut 22 percent of its management staffing since 2001. Adding in today’s reductions and those coming by July 1, nearly one of every three management positions will have been eliminated at the company.

"It is critical that management continues to lead our recovery," said Don Carty, American’s chairman and CEO. "Unfortunately, in what is certainly the most difficult outcome of this process, this means many individuals will no longer be active members of the American Airlines team."

American reduced the size of its management and support staff by 5 percent Thursday.

These reductions are part of the $100 million in cost savings that management and support staff will contribute to the airline's recovery effort.

FMI: www.amrcorp.com

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