American faces rough flight in cost-cutting union talks
22.05.12
American faces rough flight in cost-cutting union talks
By Scott Blake
American Airlines this week plans to resume cost-cutting negotiations with its labor unions, but the financially troubled carrier could have a bumpy ride.
Miami's dominant airline and one of South Florida's largest private employers, American is trying to improve its cash flow by $3 billion a year by 2017, including $2 billion in "cost savings" and $1 billion in "revenue enhancements," as part of its plan to emerge from Chapter 11 bankruptcy protection.
The savings mainly would come from a 20% cost reduction in each of American's employee groups, including management, saving about $1.25 billion a year.
The revenue gains would come from drawing more business and doing it more efficiently by adding new planes to its fleet to better "match aircraft size to the markets we serve," updating
Source: Miami Today