More Cuts At American And UnitedThane Peterson
U.S. airlines continue to clip their own wings, adding to pressure on unions to make wage and other concessions. On Sept. 14, American Airlines said it it would cut 5,000 jobs, or about 5% of its work force, by the end of next year and accelerate its retirement of aircraft. The moves, when combined with previous cuts, will reduce American's capacity by 4.5% next year.
United Airlines, meanwhile, announced on Sept. 13 the sale of its 15 flight kitchens, which would allow the company to shed 5,200 union workers and save $320 million in catering costs over a seven-year contract. The $119 million sale may be annulled if United's unions adopt a cost-savings accord by Nov. 13.