American to lay off 415 employees in January

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American to lay off 415 employees in January

FORT WORTH, Texas (AP) =97 American Airlines, looking to cut costs=20
aggressively, notified state officials that it plans to lay off 415 workers=
=20
in mid-January. The layoffs will cover 218 fleet-service clerks and 197=20
airport agents and representatives at Dallas-Fort Worth International=20
Airport, the airline said in a notice to the Texas Workforce Commission.=20
The notice, filed in early December, was obtained Tuesday by the Associated=
=20
Press. The layoffs of 415 clerks and agents would take effect Jan. 18, the=
=20
airline told the commission. It cited "severe economic conditions" in the=20
airline industry. "Although we have made some progress and continue to look=
=20
for ways in which to manage through this crisis, we, like the rest of the=20
industry, are a long way from turning the corner to financial health and=20
stability," the company said in a letter to commission chairwoman Diane=
 Rath.
American officials didn't immediately return calls Tuesday. Fort=20
Worth-based American, the world's largest carrier, has about 112,000=20
employees but needs fewer of them because it has been cutting flights to=20
save money.

The airline said in November that it would cut North American capacity=20
another 3.3% by next March, leaving it with 18.6% less passenger capacity=20
than in March 2001, before the terrorism attacks and the full effect of the=
=20
weak economy were felt.
Chairman Donald J. Carty has said the company is about halfway to its goal=
=20
of cutting $4 billion from annual costs. It has mothballed planes, canceled=
=20
orders for new jets and tried to impose new fees on travelers. In August,=20
the company announced 7,000 layoffs. In December, it also asked employees=20
to give up pay raises they are due in 2003, which would save $130 million.
Union leaders said they wanted to inspect the company's financial records=20
before members voted on the pay freeze, and they predicted the airline=20
would soon seek larger concessions. American's parent company, AMR Corp.=20
(AMR), lost nearly $3 billion in the first nine months of 2002. The major=20
U.S. airlines were expected to lose about $9 billion during the year. They=
=20
have struggled to cope with a cutback in business travel and competition=20
from low-fare carriers and cheaper Internet fares.


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