Dallas, TX – Wednesday American Airlines announced its latest round of layoffs that include 3,123 flight attendants. More than half of those, 1,780, worked for TWA before AMR Corp. bought TWA in 2001. The TWA attendants based in St. Louis were at the bottom of American's seniority list, making them the first to be laid off despite the number of years they had been flying.
Travel expert John Krieger says 'With bankruptcy on the horizon, it was necessary to make this choice rather than affect all the employees of the airline as a whole.' American's new CEO Gerard Arpey says the layoffs are part of last spring's concession package aimed at saving the cash-strapped airline $4 billion a year. TWA Attendants Hit Hard
The layoffs for many former TWA workers have been made more difficult thanks to a deal between their union and the airline dropping severance benefits. Workers say, for some TWA flight attendants that meant a loss of two months' pay, or about $8,000.
The loss of severance benefits was just one item discussed in a hearing last week in a New York federal court. Former TWA flight attendants asked for an injunction to stop the layoffs, but the judge denied their request Monday.
Krieger says, 'While the former TWA flight attendants ending up giving up more to meet AA's needed $340 million reduction in wages and benefits, the fact remains that their union representatives agreed to it with all the facts on the table.'More Cost-Cutting Ahead?
Tuesday, American reported lower traffic figures for June compared with last year, suggesting that its recovery remains slow. So, Arpey says the airline is considering cutting more flights and closing some facilities.
American has already cut 57 planes since 2002 and plans to idle 57 more by the of summer 2004. 'We will not be able to fly every nonstop route we fly today, nor will we be able to provide the same level of service in markets that cannot profitably support our current flight schedule,' Arpey said. American is also expected to close at least one of its maintenance facilities in Fort Worth, Tulsa, Okla., and Kansas City, Mo., and it is reviewing its U.S. reservations centers.John Krieger is widely regarded as one of the leading experts in the travel industry. He has been working in the business for 30 years. Mr. Krieger is the founder and president of Admiral of the Fleet Cruise and Tour Center, the #1 cruise only agency in Texas. He also serves as CEO of Alliance Travel, a full service Dallas travel agency. Mr. Krieger is available to discuss summer trips, tips and the latest deals.
