Coverage of the merger between American Airlines and US Airways

American Airlines Wants to Cut 1,200 Nonunion Jobs

Airline plans cuts in benefits, vacations, and jobs

Wednesday, Apr 18, 2012  |  Updated 11:26 PM CDT
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American Airlines told nonunion employees it wants to cut 1,200 jobs and make cuts to their benefits while under bankruptcy protection.

Scott Gordon, NBC 5 News

American Airlines told nonunion employees it wants to cut 1,200 jobs and make cuts to their benefits while under bankruptcy protection.

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American Airlines wants to eliminate 1,200 nonunion jobs as it cuts costs while under bankruptcy protection.

That pushes the company's overall job-cut target to 14,200. It announced plans in February to cut 13,000 union pilots, flight attendants and ground workers.

American, the nation's third-biggest airline, has about 73,000 workers.

American outlined the cuts for many nonunion workers on Wednesday. The company wants to outsource the jobs of all airport skycaps and cargo agents, cancel a planned lump-sum payment that was due for nonunion workers next year, freeze their pension plan, cut vacation and paid holidays, and reduce medical benefits.

The airline says it will close a reservations call center in Tucson, Ariz., and lounges at Washington's Dulles Airport and Kansas City International Airport.

The changes for agents and similar employees are expected to save $95 million, which American said would match the 20 percent cost-cutting targets for all other labor groups.

American and parent AMR Corp. filed for bankruptcy protection in November. AMR lost $2 billion last year, including restructuring costs, and has lost more than $10 billion since 2001.

In February, American announced plans to get rid of thousands of flight attendants and ground workers, as well as 400 pilots, and make other cost reductions designed to reduce annual labor costs by $1.25 billion. A hearing is scheduled to start Monday in New York on the company's request to throw out union contracts and impose new pay, benefits and work-rule terms.

American Airlines Bankruptcy:
Find complete coverage of the American Airlines bankruptcy proceedings, expert analysis and impact to customers and the local economy in our special section. Click here for more.


American Airlines Merger:
Complete coverage of the merger between American Airlines and US Airways into the newly-formed Fort Worth-based company, American Airlines Group (AAL). Click here for more.

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