American to cut 921 flight attendants' jobs

Publication date: Thu, 09/03/2009
AP Oct. 1

American Airlines is cutting 921 flight attendant jobs as it deals with a downturn in traffic & lower revenue. The airline said the cuts will take effect Oct. 1 & reduce its flight-attendant ranks by about 6%. American, the nation's 2nd-largest airline, said 228 employees will be furloughed -- laid off but with rehiring rights -- & American will put 244 more on leave for 2 months. 449 more will take voluntary options like leave. Nearly half of the flight attendants to be furloughed are based at NY's LaGuardia Airport. It planned to cut 1,200 flight attendant jobs but was able to reduce the number by adjusting staffing requirements for the winter. The airline said in June it would cut jobs as it reduced flights to meet lower travel demand. It said of the 228 furloughs, 105 would be at LaGuardia, 67 at Chicago's O'Hare, 25 in Boston, 17 in St. Louis & 14 at Reagan National. The workers' union, the APFA, said it worked with American to avoid even more layoffs by offering employees voluntary leave and the 2-month forced absences. "What was going to be 1,200 jobs lost was limited to 228," said union President Laura Glading. The 244 employees who will be placed on involuntary overage leave won't work in Oct & Nov, when air traffic is expected to be very weak. They will return to work in Dec., it said. While off the job for 2 months, those employees will have to pay for their own health insurance though they can get it at American's lower group rate, said American. Those on involuntary leave can apply for unemployment benefits without it contesting the claim, it said. The airline would contest a claim filed by someone who took voluntary leave. American has 14,936 active flight attendants, it said. Its traffic dove 10% in the 1st half of 2009r compared to that period of 08, as the recession grounded many travelers. American's woes were compounded by a steep drop in high-paying business travelers. 2nd-Q revenue at parent AMR tumbled 21% from 2008. Like other carriers, American responded to declining traffic by cutting flights. American's capacity in the first six months of the year was nearly 8% lower than in the same time last year. Airlines can cut capacity by operating fewer flights or using smaller aircraft that carry less passengers. With fewer flights, American doesn't need as many flight attendants, pilots & other workers. Shares of Fort Worth-based AMR fell 23