AMR Wants Labor Concessions | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-02.10.25

Airborne-NextGen-02.11.25

Airborne-Unlimited-02.12.25

Airborne-AffordableFlyers-02.13.25

Airborne-Unlimited-02.14.25

Wed, Feb 05, 2003

AMR Wants Labor Concessions

Urgency Cannot be Overstated

Citing its unsustainable current losses and the long-term need to restructure its business, American Airlines has asked its labor leaders and employees for $1.8 billion in permanent, annual savings through a combination of changes in wages, benefits and work rules.

"We have together made significant changes in our operation, our product and our service to build a more efficient and innovative airline," the company said in letters to union leaders and non-represented employee workgroups.

"But we need to do more. And we need to do it now. Our financial results make it abundantly clear that American's future cannot be assured until ways are found to significantly lower our labor and other costs."

In the letters, AMR Chairman and CEO Don Carty and President Gerard Arpey noted that, unlike other financially troubled airlines, the company turned to employees as a last resort, and only after pursuing an aggressive restructuring plan that identified $2 billion in annual, structural cost savings.

Company executives have said the airline needs an estimated $4 billion in permanent annual savings to compete effectively and return to profitability.

The company cited pricing actions by low-cost and bankrupt carriers among the factors putting "unrelenting pressure" on the company's financial situation.

"Today, as a last resort, we are taking the difficult step of asking all of our employees to participate in American's recovery by working with us to deliver $1.8 billion in permanent, steady-state savings. We hope to work collaboratively with you to restructure labor agreements to realize these permanent, annual savings and those needed to address our long-term financial health." The company also said it would seek to obtain accommodations from a number of its other stakeholders, including aircraft lessors, lenders and suppliers.

FMI: www.amrcorp.com

Advertisement

More News

ANN's Daily Aero-Term (02.14.25): UAS Traffic Management (UTM)

UAS Traffic Management (UTM) The unmanned aircraft traffic management ecosystem that will allow multiple low altitude BVLOS operations and which is separate from, but complementary>[...]

Aero-News: Quote of the Day (02.14.25)

"Harbor Security boats are on site securing the area, and a containment boom was placed around the crash site to minimize the spread of fuel and debris. Environmental and safety te>[...]

Airborne-NextGen 02.11.25: Another Drone Bust, NAS Reform, Moon Rover

Also: Boeing Losing Space Biz?, Evolito-Flying Whales, OK AAM, Wingcopter LiDAR A 43-year-old Baltimore man is up against felony charges for flying his unregistered drone over the >[...]

Airborne Affordable Flyers 02.13.25: Sonex HW!, Stampe Reborn, ERAU Buys NX Cubs

Also: DeltaHawk RV-14 Runups!, GAMI G100UL Issues, Able Flight's 100th, New Rotax Problems Sonex Aircraft has officially opened reservations for its highly anticipated Highwing kit>[...]

Airborne 02.10.25: The Stampe Returns!, Musk Reforming ATC?, TWO B29s For OSH25!

Also: US Seizes 2nd Jet, More Osh Performers, Tuskegee Airman Passes, Safran Electric A/C Motor JMB Aircraft and Ultralight Concept have formed a joint venture with plans to recrea>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2025 Web Development & Design by Pauli Systems, LC