American Airlines cuts 13,000 Jobs and pension benefits
AMR Corp., parent company of American Airlines that the airline was bankrupt, is planning to impose mass layoffs. The victim is 13 000 employees and retirement benefits were abolished for the sake of efficiency of the company to re-compete the aviation services business.
According to news agency Reuters, mass layoffs announced by AMR executives, a company based in the U.S., on Wednesday. With the drastic policy, the AMR will save more than U.S. $ 2 billion per year.
“As you know, our major competitors have implemented a restructuring process for major change and become more competitive in every aspect of their business,” said AMR Chief Executive Corporate, Tom Horton, in a letter to employees. According to him, all business groups AMR will experience a 20 percent budget reduction, including the management team.
American Airlines in November last year has filed for bankruptcy court protection in New York. One of the major airlines in the United States had suffered losses of U.S. $ 10 billion in the last decade.
AMR seems to follow in the footsteps of competitors that have implemented savings and corporate restructuring. United Airlines, Delta Air Line, and U.S. Airways have implemented the structure of merger and restructuring between 2002 to 2010.
The strategy was to make them return profit, despite relatively high world oil prices, which is almost U.S. $ 100 per barrel. In contrast, American Airlines last December suffering losses of U.S. $ 900 million.
“In fact, we are losing money every day,” said Jeff Brundage, American Airlines Vice President of field personnel.
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