AMR CEO Says Jobs to Be Cut, Company May Be Takeover Target

AMR Corp. “most certainly” will cut jobs as the parent of American Airlines revamps its fleet and flight network and may become a takeover target during its bankruptcy, Chief Executive Officer Tom Horton said.

American, the third-biggest U.S. airline, will decide “in the coming weeks” about what aircraft it will keep, the size of its route system, how many workers the Fort Worth, Texas-based carrier requires and what it needs to negotiate in labor contracts, he said in a letter to employees today.