For Some, American Cutbacks Will Hurt A Lot Less | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne-Unmanned w/AUVSI

Airborne On ANN

AMA 05.18.17

Airborne
05.22.17

Airborne
05.23.17

Airborne
05.24.17

Airborne
05.25.17

Airborne
05.19.17

Airborne-Unmanned 05.23.17

Airborne-YouTube

AMA 05.18.17

Airborne
05.22.17

Airborne
05.23.17

Airborne
05.24.17

Airborne
05.25.17

Airborne
05.19.17

Airborne-Unmanned 05.23.17

XPONENTIAL Innovation Preview -- www.allthingsunmanned.com

Fri, Apr 04, 2003

For Some, American Cutbacks Will Hurt A Lot Less

American Defends Smaller Cutbacks For Management

If it can be said anyone is going to make out better than the average bear in the severe cutbacks looming for American Airlines, it appears to be management. Now, company executives are defending job and salary cuts for executives that are much less severe than those faced by pilots, flight attendants and mechanics.

Comparing The Numbers
  • Management: AA plans to cut about $100 million from management costs by eliminating 5 percent of the 12,000 jobs and trimming salaries by between four and 15 percent.
  • Pilots: Pilot compensation would drop 23 percent on May 1.
  • Flight Attendants: 15.6 percent wage cuts.
  • Mechanics: Wages of mechanics would be slashed 16 percent
  • Baggage Handlers: 15.6 percent wage reductions.
Management: We've Already Taken Big Hits

A company spokesman defended the more-modest cuts for management employees, noting that they have gone without raises and bonuses for the past two years.

Pay for American's management employees lagged industry averages while the company's flight attendants and ground workers have been at the top of industry pay scales and pilots have been near the top, said spokesman Bruce Hicks.

"We have always kept at the industry average, very lean and very efficient ... but this puts management even further below average," Hicks said Thursday.

The Fort Worth-based airline has already reduced management by 22 percent since the Sept. 2001 terrorist attacks, he said.

The first $30,000 of their salaries will be reduced by 4 percent, the next $30,000 by 7 percent, the next $30,000 by 10 percent and for amounts over $90,000, 13.5 percent. Chairman Donald J. Carty said this week he would take a 33 percent cut from his $585,813 salary, and officers' pay would be cut 17 percent.

American and its three major unions reached tentative agreements Monday on deals to cut more than $1.6 billion in annual labor costs, the bulk of an estimated $1.8 billion reduction in overall labor spending. Airline officials said they would have to file for bankruptcy without the deals.

Union officials defended the deals, warning of even deeper pay cuts and more layoffs if American went into bankruptcy.

Lay-Offs Too

Under the tentative agreements, about 2,500 pilots, 2,400 flight attendants and 1,100 to 1,400 ground workers likely will lose their jobs. Remaining employees will work longer hours and get less vacation.

The deals call for $660 million in cuts from pilots, $620 million from ground workers and $340 from flight attendants.

Union employees have until mid-April to approve the plans, which also would give workers stock options worth a 24.3 percent equity stake in the airline, plus profit sharing once the company reaches profit targets.

A group called Pilots Defending the Profession has started an organized campaign against the deal, saying it might not keep American out of bankruptcy.

The group said in a Web site posting Thursday that the pilots union gave up too much without getting partial ownership of American or seats on its board of directors.

As devastating as the cuts are, the airline has said it would lay off a total of 3,900 flight attendants - 1,500 more than what is proposed in the concessions plan - if it files for bankruptcy, said Association of Professional Flight Attendants spokesman George Price.

In that case, the company has said it would use Latin American flight attendants who are paid much less than their U.S. counterparts, Price said.

"That means we could lose American jobs to foreign nationals," he said.

FMI: www.aa.com, www.apapdp.org

Advertisement

More News

AMA Drone Report 05.18.17: Drone-Jumping!, AMA Sightings Report, King Schools

Also: DJI Smart TV App, Huerta: Unmanned Aircraft 'Good News Story', XPONENTIAL Innovation Preview Ya had to see it to believe it... An ingenious Latvian UAS operation has pulled o>[...]

Airborne-Unmanned 05.23.17: Courts Nix Model Regs, Autonymous Flt, WATT 300

Also: King Schools Update, Kittyhawk APP, Robird And Integrated Drone Solutions, ICAO Drone Tracking The unmanned community got a bit of a jolt late last week when the US Court of >[...]

Airborne 05.23.17: Icon A5 NTSB Report, Product Certification, GE9X Testing

Also: UAL Cockpit Doors, NAHI 2017, Drone Database, Manual Flying Skills, Heli-Theft, Runway Extension, New SecAF The NTSB has released its preliminary report from an accident invo>[...]

Airborne-Unmanned 05.23.17: Courts Nix Model Regs, Autonymous Flt, WATT 300

Also: King Schools Update, Kittyhawk APP, Robird And Integrated Drone Solutions, ICAO Drone Tracking The unmanned community got a bit of a jolt late last week when the US Court of >[...]

Airborne-Unmanned 05.16.17: XPONENTIAL 2017, Airbus Aerial, Parrot Professional

Also: AUVSI BOD, PrecisionHawk's Free PrecisionMapper, Consortiq, XPONENTIAL 2017 Innovation Preview As opening sessions go, it was an eye-opener. Intel CEO Brian Krzanich took the>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC