American Airlines: 900 flight attendants may be furloughed
American Airlines confirmed Wednesday it sent a "WARN" letter to its 900 most junior flight attendants, advising them they are subject to furlough effective Aug. 31.
American Airlines confirmed Wednesday it sent a “WARN” letter to its 900 most junior flight attendants, advising them they are subject to furlough effective Aug. 31.
In late May, American’s parent company, AMR Corp., announced plans to cut the airline’s fourth-quarter capacity by as much as 12% from year-earlier levels to cope with crippling jet-fuel prices and the weak U.S. economy. The airline has said employee reductions are expected companywide comparable with the capacity reductions.
The world’s largest carrier said the WARN notice, issued under the Worker Adjustment and Retraining Notification Act, isn’t a layoff notice but a federal requirement for layoffs.
American also said it will offer a “voluntary bridge to retirement” for many U.S. and San Juan employees who are over age 50 and have at least 15 years of service with the airline. The carrier has already reached agreements with the Association of Professional Flight Attendants and Transport Workers Union to offer the package to those employees.
Capacity cuts have become de rigueur in the airline industry. UAL Corp.’s United Airlines unit notified its 6,500 pilots that it plans to furlough 950 pilots by the end of 2009 as it cuts its fleet by 100 aircraft, while Delta Air Lines Inc. has shed 4,000 jobs through voluntary buyouts.
Shares traded recently down 5.6% at $4.58.