American will cut 415 jobs in Texas

Associated Press

FORT WORTH, Texas — American Airlines, looking to cut costs aggressively, has notified state officials that it plans to lay off 415 workers in mid-January.

The layoffs will cover 218 fleet-service clerks and 197 airport agents and representatives at Dallas-Fort Worth International Airport, the airline said in a notice to the Texas Workforce Commission. The notice, filed in early December, was obtained yesterday by The Associated Press.

The layoffs of 415 clerks and agents would take effect Jan. 18, the airline told the commission. It cited "severe economic conditions" in the airline industry.

"Although we have made some progress and continue to look for ways in which to manage through this crisis, we, like the rest of the industry, are a long way from turning the corner to financial health and stability," the company said in a letter to commission chairwoman Diane Rath.

American officials did not immediately return calls yesterday.

Fort Worth-based American, the world's largest carrier, has about 112,000 employees but needs fewer of them because it has been cutting flights to save money.

The airline said in November that it would cut North American capacity another 3.3 percent by next March, leaving it with 18.6 percent less passenger capacity than in March 2001, before the terrorism attacks and the full effect of the weak economy were felt.

Chairman Donald J. Carty has said the company is about halfway to its goal of cutting $4 billion from annual costs.

It has mothballed planes, canceled orders for new jets and tried to impose new fees on travelers.

In August, the company announced 7,000 layoffs. In December, it also asked employees to give up pay raises they are due in 2003, which would save $130 million.

Union leaders said they wanted to inspect the company's financial records before members voted on the pay freeze, and they predicted the airline would soon seek larger concessions.

American's parent company, AMR Corp., lost nearly $3 billion in the first nine months of 2002. The major U.S. airlines were expected to lose about $9 billion during the year.

They have struggled to cope with a cutback in business travel and competition from low-fare carriers and cheaper Internet fares.

In trading on the New York Stock Exchange, AMR shares rose 36 cents, or 5.8 percent, to close yesterday at $6.60.