LINKEDINCOMMENTMORE

The parent of American Airlines wants to eliminate about 13,000 jobs 15 percent of its workforce as the nation's third-biggest airline remakes itself under bankruptcy protection. The company proposes to end its traditional pension plans, a move strongly opposed by the airline's unions and the U.S. pension-insurance agency, and to stop paying for retiree health benefits. AMR Corp. said Wednesday that it must cut labor costs by 20 percent. - AP


7:56p Besides fewer workers and reduced benefits, company officials said that other cost-cutting moves would include restructuring debt and aircraft leases and grounding older planes. A maintenance-overhaul facility in Fort Worth would close and some maintenance would be outsourced, a move that American has long resisted. Aircraft-cleaning and fueling work would also be outsourced, and pilots and flight attendants could work more hours. - AP

6:26p There is fear and uncertainty at American Airlines' maintenance base at Alliance Airport in Fort Worth. While the carrier says it plans to eliminate all maintenance jobs, it is unclear whether hundreds of other positions will also be affected. - Craig Civale at Alliance Airport

6:07p American wants to terminate all of its pension plans, and it will ask the bankruptcy court to approve. If that happens, the Pension Benefit Guaranty Corp. (PBGC) will be called on to take over management of the plan, but employees would lose health insurance benefits and there would be a $54,000 annual cap on payments. - Byron Harris

5:50p Two other carriers have expressed an interest in merging with American Airlines: US Airways and Delta Air Lines. But aviation expert Mike Boyd says British Airways could also be a likely partner because it already has operating agreements with American on international flights. - WFAA

5:23p American Airlines spokesman Bruce Hicks said cuts will be coming to the airline's massive maintenance facility in Tulsa, Oklahoma, although the number of jobs affected yas not yet been determined. - Jason Whitely reporting from AMRCorp. headquarters in Fort Worth

5:06p Fort Worth Mayor Betsy Price told News 8 she was alerted to the American Airlines restructuring announcement on Tuesday. I don't believe there's anything else we could have done, she said. Since they filed for bankruptcy, we've been in direct contact with them; if not daily, then several times a week. We've worked diligently with our Chambers behind the scenes and just at a lower key level, and we've done everything we could've. She described the impact of the cutbacks on Fort Worth's revenue as significant but a very small piece of our total tax base. -Jim Douglas reporting from Fort Worth

5:04p American Airlines has proposed cutting more than 25 percent of jobs held by members of the Transport Workers Union. For Jason Sleeman, they're not just jobs they are his co-workers. That's the sad part about it, he said. It's going to be your neighbor; it's going to be somebody at church ... it's going to touch the Metroplex really hard. Sleeman has worked at American Airlines for 24 years. His dad did, too. He's seen the proposal that eliminates 8,800 ground workers and mechanics, and he wonders what the airline is thinking. His union already gave back more than 30 percent of salary and benefits in 2003 to keep American flying. Union members had hoped their loyalty would be repaid this time around but it wasn't. - Casey Norton at AMR Corp. headquarters in Fort Worth

5p American Airlines employees are trying to absorb the news that includes 13,000 proposed job cuts at the same time the company spends up to $10 billion to upgrade its fleet of jets. If unions do not reach agreement with American, it will be up to a bankruptcy court to decide how the airline restructures. - Jason Whitely at AMRCorp. headquarters in Fort Worth

4:51p Ray Neidl, an analyst with Maxim Group LLC, said for American to win support for its restructuring plan, it would have to offer employees a goal a carrot and not just a stick. It's hard to see a carrot right now, he said, but you have to convince them that this is part of a plan to return to profits and secure jobs. - Associated Press

4:33p In a news release issued late this afternoon, AMR Corporation chairman and CEO Tom Horton is quoted as saying: American Airlines is moving forward decisively. The plan we are outlining today provides the framework for a new American Airlines, positioned to succeed in an intensely competitive industry that has been transformed by our competitors recent restructurings. The statement says American will increase departures across the airline's five key markets Dallas/Fort Worth, Chicago, Miami, Los Angeles and New York by 20 percent over the next five years. - WFAA

4:10pClick to watch John McCaa's update on the American Airlines situation.

4p American Airlines has now posted a Restructuring AMR Web site to outline the company's plan to emerge from Chapter 11 bankruptcy protection. It is our hope that consensual agreements can be reached with all of our unionized workgroups, the site says. These agreements, along with our plans for our non-unionized workgroups, will mean that in the end, we ll be a more efficient airline, with the opportunity to position American to regain its market leading position. - WFAA

3:55p In a letter to employees, American Airlines senior vice president for resources Jeff Brundage outlines the reasons behind the company's move to seek $1.25 billion in permanent annual cost reductions from all employee groups. Brundage says the airline is losing money every day, and it has become necessary to significantly reduce employee costs. Nothing about this process is easy, but the alternatives are harder still, he wrote. While he acknowledges that the job reduction of approximately 13,000 employees is difficult, he says our proposals are consistent with the approach of other airlines and ar fundamentally necessary for our long-term success. - WFAA

3:40p Laura Glading of the Association of Professional Flight Attendants has just released a statement about restructuring at American Airlines. The Negotiating Team expected this to look ugly, yet it has exceeded all our expectations. The betrayal of our Flight Attendants began in 2003 and continues today. The statement goes on to say the company's proposal is even more extreme and despicable than we had anticipated. The organization also released a term sheet detailing American Airlines' proposal of necessary modifications to the existing collective bargaining agreement. - WFAA

LINKEDINCOMMENTMORE
Read or Share this story: http://www.wfaa.com/story/news/2014/08/15/13833616/