American Airlines to lay off 2,500 pilots
Wednesday, April 2, 2003 Posted: 4:11 AM EST (0911 GMT)
FORT WORTH, Texas (AP) -- American Airlines will lay off 2,500 pilots over the next year as it cuts costs in hopes of staving off bankruptcy, union officials said Tuesday.
About 21 percent of American's 12,000 pilots will lose their jobs, with cuts beginning at the bottom of the seniority ladder. Pilots can be recalled within two years if the airline, the world's largest, adds jobs.
The cuts were announced by officials with the Allied Pilots Association, which has agreed to $660 million in annual concessions to help save the company from bankruptcy.
Pilots' pay will be cut 23 percent for one year, beginning May 1. After that, pilots will earn 17 percent less than what they're paid now through the six-year contract, said John E. Darrah, president of the 12,500-member Allied Pilots Association.
Pilots have 14 days to ratify the new contract.
"I don't think anybody's thrilled with the significant pay cuts and furloughs ... but the alternative clearly would be even worse," union spokesman Gregg Overman said.
AMR Corp., the airline's parent, has lost nearly $5.3 billion in the past two years and has faced increasing competition from low-fare carriers. It took a huge step toward preventing bankruptcy Monday by reaching cost-cutting agreements worth $1.8 billion with the pilots and unions representing flight attendants and mechanics.
George Price, spokesman for the flight attendants, said he would not disclose layoff numbers, salary cuts or other details of the agreement.
Meanwhile, AMR Corp. asked the Securities and Exchange Commission for more time to file its 2002 annual report.
Wednesday, April 2, 2003 Posted: 4:11 AM EST (0911 GMT)
FORT WORTH, Texas (AP) -- American Airlines will lay off 2,500 pilots over the next year as it cuts costs in hopes of staving off bankruptcy, union officials said Tuesday.
About 21 percent of American's 12,000 pilots will lose their jobs, with cuts beginning at the bottom of the seniority ladder. Pilots can be recalled within two years if the airline, the world's largest, adds jobs.
The cuts were announced by officials with the Allied Pilots Association, which has agreed to $660 million in annual concessions to help save the company from bankruptcy.
Pilots' pay will be cut 23 percent for one year, beginning May 1. After that, pilots will earn 17 percent less than what they're paid now through the six-year contract, said John E. Darrah, president of the 12,500-member Allied Pilots Association.
Pilots have 14 days to ratify the new contract.
"I don't think anybody's thrilled with the significant pay cuts and furloughs ... but the alternative clearly would be even worse," union spokesman Gregg Overman said.
AMR Corp., the airline's parent, has lost nearly $5.3 billion in the past two years and has faced increasing competition from low-fare carriers. It took a huge step toward preventing bankruptcy Monday by reaching cost-cutting agreements worth $1.8 billion with the pilots and unions representing flight attendants and mechanics.
George Price, spokesman for the flight attendants, said he would not disclose layoff numbers, salary cuts or other details of the agreement.
Meanwhile, AMR Corp. asked the Securities and Exchange Commission for more time to file its 2002 annual report.
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