American Eagle to cut about 13 percent of operating costs




Posted on March 21, 2012 at 7:57 AM

Updated Wednesday, Mar 21 at 2:41 PM

ARLINGTON - AMR could lay out more job cuts today, with their aim likely at pilots, flight attendants, mechanics and ground workers at American Eagle.

Union members met with AMR leaders to discuss the proposed cuts at the American Airlines Training Center in Arlington today.

AMR announced they will be cutting roughly 13 percent of American Eagle's operating costs, which is seven percent less than was previously cut from American.

A source who was in the meeting this morning said AMR wants $78 million in concessions from its American Eagle unions. Specific cuts were to be laid out later in the afternoon.

American Eagle employs about 13,000 people. Analysts said they expect the bulk of the layoffs to hit mechanics and ground workers.

AMR announced $1.5 billion in cuts for the larger American Airlines on February 1. The cuts equaled to a nearly 20 percent reduction across the board.

Analysts said for American Eagle to compete with other regional carriers, it will need to operate larger planes that carry 70 to 90 passengers versus the smaller 50-seater air crafts. That will require major work rule changes for pilots.

The Transport Workers Union, which was targeted for nearly 9,000 jobs of American's 13,000 total cuts, said it expects to take the brunt once again. They expects to see outsourcing for maintenance and cabin crews as part of American Eagle's plan.

The flight attendants have already scheduled meetings with accountants and attorneys for Thursday. They want to define the cuts and start negotiations as soon as possible.