American Airlines considers layoffs

August 10, 1994|By Dallas Morning News

DALLAS -- American Airlines Inc. and its parent, AMR Corp., are considering another round of management and professional layoffs later this year, with cuts of 20 percent or more under discussion.

People inside and outside the company said managers have been told to expect further job cuts as part of the airline's plan to pull out of nonprofitable markets and reduce overall costs. While final numbers haven't been determined, several people have said figures of up to 30 percent have been discussed.

American spokesman John Hotard said he couldn't comment on company plans.

"The company is still downsizing the airline. We have said all along there will be continuing layoffs, but we have no new numbers at this time," Mr. Hotard said.

AMR had 15,139 management, professional and specialist employees, ranging from executives to yield-management specialists, at the end of 1993. A 20 percent cutback would represent about 3,000 employees.

Through June 30, AMR has had net income of $146 million on revenue of $7.9 billion, but company officials have called the earnings inadequate. The company said AMR management wants to cut labor costs by $750 million a year, including $300 million a year from pilot costs.

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