About This Video
In a reaction to the fuel price epidemic, American Airlines is making a move to cut costs, mainly in their flight crew employment.
Nearly 900 flight attendant jobs will be eliminated, which represents about 5% of the 18,000 American Airlines attendants work force.
Federal Law requires major layoffs to give workers 60 days’ notice, which would put the crews out of work as of August 31.
In what projects to be the second worst year for the industry behind 2001 and the 9/11 attacks, American Airlines (the nation’s largest airline) is faced with a $1.27 Billion cost of parking aircrafts and paying employee severance packages.
American Airlines expects fuel costs to total approximately $10 Billion for 2008, up from $6.7 Billion in 2007. Citing the high price of fuel, the airline has already decreased its number of flights, raised fairs, and charged passengers $15 per checked bag.
American Airlines spokesman Tim Wagner stated, “these are difficult, but necessary changes given the unprecedented challenges with overcapacity in the industry, skyrocketing fuel prices, and a worsening U.S. economy.”
Wagner didn’t say if the airline would start charging for peanuts too…
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