Re: [Sky-1] Airline's troubles worry Oklahoma city

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Same worries felt in Dallas & every other Braniff city in 1982.
Ironic, since AA did everything in its power to hasten BN's bankruptcy.
-Mo

On Fri, 14 Mar 2003, Roger James wrote:

> Airline's troubles worry Oklahoma city
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> OWASSO, Okla. (AP) =97 In a city where American Airlines' contributions c=
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> be measured in everything from cups of coffee to car sales, the airline's=
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> troubles had some residents on edge Thursday. About 1,000 of the 10,000=
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> workers at American's Tulsa maintenance base live here, helping to make t=
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> Tulsa suburb Oklahoma's fastest growing city. But they're not the only on=
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> uneasy about the future of the world's largest carrier. "It worries me,"=
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> said Gary Briggs, who works on cars, not airplanes, but attributes a=20
> decline in his business partly to jittery American employees staving off=
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> inevitable repairs. The stock of AMR, American's parent, has lost more th=
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> 90% of its value in the past year. Shares fell sharply this week after=20
> reports that AMR was negotiating financing to operate under bankruptcy=20
> protection. The uncertainty over what's next may have some residents=20
> thinking twice about making big buys or dining out, said Gary Akin,=20
> president of the Chamber of Commerce. "American Airlines isn't going to g=
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> away," he said. "It could be restructured. Does it mean overall lower=20
> benefits? Does it mean overall lower wages? "What will American look like=
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> two or three years from now? I don't think anyone knows."
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> In an effort to avoid bankruptcy, American has proposed concessions that=
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> include salary and benefits reductions. Leaders of the Transport Workers=
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> Union, which represents mechanics, baggage handlers and other ground=20
> workers, said they would review the proposal. A decade ago, American=20
> employees made up roughly 40 percent of Owasso households, said Tim Roone=
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> assistant city manager. That percentage decreased as Owasso's population=
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> grew 79 percent from 1990 to 20,000 last year. Residential building permi=
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> increased nearly six-fold during the same period. The city's average=20
> household income is $66,723.
> Sales tax revenues, however, have not met expectations in recent months,=
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> Rooney said. The city budgeted for a 7.72 percent sales tax increase over=
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> last year but now believes that number will be about 2.8 percent less. "B=
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> we don't necessarily attribute that to what's going on at American," he=
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> said. "We attribute it to more what's going on nationally" with uncertain=
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> over potential war in Iraq.
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> Some Owasso residents have lost jobs as WorldCom, in an industrial park=
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> just outside city limits, has cut its work force=20
> of=20
> 4,600 by nearly half. Business has dropped off just a little at the Ram=
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> Cafe, a diner named for the school mascot, where a mostly blue-collar cro=
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> gathers for breakfast at 5:30 a.m.Owner Mary Lou Barnhouse said she feels=
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> for the families of American Airlines employees who have come to count on=
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> well-paying maintenance jobs. But she knows many more Owasso residents=20
> could be affected by the company's struggles."I could see where it could=
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> have a mushroom effect on Owasso," she said over the slap and sizzle of=
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> burgers. "If there should be layoffs or cutbacks on salaries, it could ha=
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> an effect on everyone."
> Loretta Tittle's son-in-law works at American as a mechanic. News reports=
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> on the company's outlook now grab her attention.
> She worries, even though her daughter has a job, too.If American has to l=
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> off workers or goes bankrupt, she said, "it would be like taking half the=
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> food off the table."
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> Roj (Roger James)
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