Wed, May 21, 2008
BIG Layoffs, Capacity Cuts On The Horizon
ANN REALTIME REPORTING
05.21.08 1345 EDT: Things appear to be dire at American
Airlines. The Fort Worth-based carrier announced Wednesday plans to
slash its flight schedule and workforce, as the airline struggles
to cope with high fuel prices.
Passengers will also feel the pain, reports The Associated
Press... as the airline will start charging for ALL checked luggage
as of June 15. The first bag will cost $15; additional luggage will
be hit with the $25 per-bag fee American announced last month.
Elite-level members of American's frequent flier programs will
be exempt from at least part of the new luggage fees, as well
overseas passengers and full-fare ticketholders. The airline is the
first legacy carrier to charge for all checked luggage; it's
unclear whether it will be the last, but we wouldn't bet against
it.
American also plans to raise other fees by up to $50 per
service.
The carrier -- which managed to avoid following its rivals into
bankruptcy several years ago -- also plans to cut domestic
capacity by as much as 12 percent in the fourth quarter of 2008,
mostly through the retirement of its oldest MD-82 and MD-83 jets.
American had previously forecast a 4.6 drop in Q4 capacity.
Gerard Arpey, chairman and CEO of American parent company AMR,
said the changes (and charges) were being made to adapt to "the
current reality of slow economic growth and high oil prices."
As for layoffs at the world's largest carrier, Arpey did not
cite an exact number... but when he was asked whether he
expects the figure to be in the thousands, Arpey answered in the
affirmative.
Not surprisingly, shares in AMR fell over 24 percent
following Wednesday's announcement, which came during American's
annual shareholders meeting.
More News
Aero Linx: International Flying Farmers IFF is a not-for-profit organization started in 1944 by farmers who were also private pilots. We have members all across the United States a>[...]
From 2017 (YouTube Version): Remembrances Of An Israeli Air Force Test Pilot Early in 2016, ANN contributor Maxine Scheer traveled to Israel, where she had the opportunity to sit d>[...]
"We renegotiated what our debt restructuring is on a lot of our debts, mostly with the family. Those debts are going to be converted into equity..." Source: Excerpts from a short v>[...]
Also: B-29 Superfortress Reunion, FAA Wants Controllers, Spirit Airlines Pulls Back, Gogo Galileo Van's Aircraft posted a short video recapping the goings-on around their reorganiz>[...]
Chart Supplement US A flight information publication designed for use with appropriate IFR or VFR charts which contains data on all airports, seaplane bases, and heliports open to >[...]