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Thu, Feb 06, 2003

World's Largest Airline Shrinking

Yesterday, it Was Flight Attendants

Today, the news is that American Airlines will be laying off about 900 more employees, the result of shutting down two of its remaining ten reservations offices. American's reservations employees in Las Vegas (NV) and Norfolk (VA) are expecting their walking papers shortly, as the world's largest airline reduces overhead. Some 550 of the cuts are from the Virginia office.

As American runs into problems similar to United's (trying to get unions to move quickly to reduce their members' pay), it has to simply eliminate jobs wherever it can. The airline's official stance was that this reduction is "a last resort."

"A last resort" -- instead of what? American isn't saying, directly; but we must suppose it's instead of a Chapter 11 filing.

FMI: www.amrcorp.com

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