American Airlines sees job cuts over time

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American Airlines sees job cuts over time



Wednesday July 3, 8:50 AM EDT


CHICAGO, July 3 (Reuters) - Citing a fundamental change in the airline
business, American Airlines Chief Executive Donald Carty said job cuts
at the world's largest carrier will occur over time.

American is a unit of Dallas/Fort Worth-based AMR Corp. (AMR
<http://money.excite.com/jsp/qt/full.jsp?time=0&symbol_search_text=AMR>
), which has posted a total net loss of $1.79 billion in the three
quarters since the Sept. 11 attacks.

"Over time, we'll need fewer people to operate the airline," Cary said
on a hotline to employees. "Today, we have a lot of people traveling but
on fares that simply don't provide the level of revenue we became
accustomed to during the economic boom years."

He said it is becoming clear that the condition of big carriers like
American is not going to suddenly improve when the economy gets better.
"Just as Wal-Mart (WMT
<http://money.excite.com/jsp/qt/full.jsp?time=0&symbol_search_text=WMT>
) has become the No. 1 retailer in the United States and lots of
well-known retail names fell by the wayside, consumers are telling big
airlines they really really like us but they can't or won't pay extra
for the convenience and amenities that we offer."

Job cuts will be made mostly through attrition, turnover and
retirements, Carty said, but some involuntary programs may be needed. "I
want everyone to grasp the sense of urgency here."

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