American Airlines, which filed for Chapter 11 bankruptcy protection in November, said that it will cut its flights to New Delhi and Burbank, Calif., and will also cut 150 positions. American’s Chicago-New Delhi service will be cancelled effective March 1, and the airline will stop flying between Dallas/Fort Worth and Burbank, Calif., effective Feb. 9. This will result in the closing of both Delhi and Burbank operations. Some operational and business changes that occurred prior to the company filing for reorganization will result in a reduction of approximately 150 airport-related employees.
The airline said that the flight cancellations and job cuts are related to normal business changes and aren’t specifically related to bankruptcy restructuring.
The job cuts will affect approximately 45 full-time Title II facility and automotive mechanics and 75 full-time Title III fleet service clerk positions in the U.S. In addition, 30 full-time Title III fleet service clerk positions in San Juan will be eliminated on Feb. 17. American warned that other “adjustments” may occur.
The airline said that it would make every effort to minimize the number of involuntary reductions by offering voluntary programs for TWU-represented airport employees. American said the job cuts were due to the loss of the U.S. Postal Service domestic mail contract, the closing of its ground service equipment refurbishment shop in St. Louis, and employee headcount changes related to its October 2011 winter service reductions.
American will offer the Stand in Stead (SIS) program, which provides terminated employees with voluntary separation benefits, including travel privileges.
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