American Airlines may lay off 900 flight attendants in August
11:55 AM CDT on Wednesday, July 2, 2008
By TERRY MAXON / The Dallas Morning News
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American Airlines Inc. has informed its flight attendants’ union that it may furlough 900 flight attendants as of Aug. 31.
In a hotline message to members, the Association of Professional Flight Attendants said the airline delivered a WARN letter, Worker Adjustment and Retraining Notification Act, informing them of the looming layoffs.
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American chairman and chief executive Gerard Arpey had confirmed in May that the airline would eliminate thousands of jobs as it reduces its capacity 11 to 12 percent by the fourth quarter compared to the same period of 2007.
Last week, the airline it would eliminate 8 percent of its management and support jobs.
The union said American has agreed to some provisions for early retirements, voluntary leaves of absence and “partnership flying” in which two attendants can share the same job.
The “bridge to retirement” is being offered to flight attendants not currently on furlough, at least 50 years old and with at least 15 years’ seniority as of August 31, the union said.
Among other items, the attendants taking advantage of the retirement offer will get a $15,000 severance payment and some medical and travel pass benefits, the union said.
American spokesman Tim Wagner had no immediate details on similar notices sent to other employee groups.
“Employee reductions are expected companywide comparable with the flight capacity reductions,” he said. “We recently finalized our fall schedule, which is an important step in determining appropriate staffing levels.”
However, he said the airline hopes to avoid many layoffs through voluntary measures such as attrition, the voluntary bridge to retirement or other measures. The airline has negotiated the retirement bridge option with the flight attendants’ union and the Transport Workers Union, he said.
“These are difficult, but necessary changes given the unprecedented challenges we face with overcapacity in the industry, skyrocketing fuel prices and a worsening U.S. economy,” Mr. Wagner said. “We will work with all affected employees in this transition.”