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Tue, Apr 08, 2008

American Airlines Halts Non-Flight Crew Hiring

Management, Support Jobs Frozen To Cope With Fuel Prices

American Airlines says it has frozen hiring of management and support staff in its latest move to cope with high fuel costs and a slowing economy.

American spokesman Andy Backover says the company will honor job offers issued before April, but otherwise, the freeze will be in place indefinitely.

On Friday, Backover told the Associated Press, "I think it's no secret that the entire industry, including us, has been struggling to contain costs, mainly the cost of fuel."

That struggle has included announcements over the past 10 days by Skybus, ATA and Aloha Airlines that each have stopped flying and filed for bankruptcy protection, all laying at least part of the blame on oil prices, which have remained above $100 a barrel.

American said last month that it expects to spend $9.3 billion on fuel this year, up 39 percent from 2007. The airline says fuel now accounts for about one-third of its expenses, about triple the percentage fuel costs represented in 1999.

FMI: www.aa.com

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