American Air furloughs 3,100 flight attendants

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American Air furloughs 3,100 flight attendants  =

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Tuesday July 1, 2:37 PM EDT =


By Jon Herskovitz

DALLAS, July 1 (Reuters) - About 3,100 American Airlines flight attendant=
s were furloughed effective Tuesday as a part of a restructuring plan aim=
ed at saving the bankruptcy-threatened airline.

The furloughs were expected and include about 1,750 flight attendants who=
 used to work for TWA, which was bought out by American, and some 1,300 A=
merican flight attendants, a spokeswoman said. The jobs account for about=
 3.5 percent of the work force at the world's largest carrier.

"While it is always sad to say goodbye to our colleagues, the restructuri=
ng is necessary to bring about the changes that are needed here to bring =
us back to profitability," said a spokeswoman with American, a division o=
f AMR Corp. (AMR).

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American is trying to cut operating costs by about an annual $4 billion, =
and earlier this year it reached deals with its major unions aimed at sav=
ing $1.8 billion a year. The airline has also reduced capacity and cut do=
wn on its fleet.

George Price, a spokesman for the union that represents American's flight=
 attendants, said it is heartbreaking to see the furloughs, which he desc=
ribed as an unprecedented number at one time. Thousand of pilots, mechani=
cs and ground personnel at American have also lost their jobs due to the =
restructuring.

A federal judge turned down a bid to block the flight attendant furloughs=
=2E Since Oct. 2001, American has furloughed 6,149 flight attendants, Pri=
ce said.

"We didn't run American Airlines into the ground financially. Unfortunate=
ly, we are the ones helping to pick it back up," Price said.

American narrowly averted a bankruptcy filing earlier this year. AMR Chie=
f Executive Gerard Arpey said last month the carrier should save about $2=
00 million in the second quarter because of the labor deals; and as of Ju=
ly, the airline should have about 35,000 fewer employees than it did in 2=
001.

In a regulatory filing last week, Fort Worth, Texas-based AMR, said lower=
 costs and improved unit revenue led to positive cash flow from operation=
s in May and that similar results might occur in June.

AMR shares had rebounded from lows of about $1.30 in March, when the airl=
ine teetered on the brink of a Chapter 11 filing, to about $10.60, off 40=
 cents, in trading on the New York Stock Exchange on Tuesday. =



=A92003 Reuters Limited. =


Roger
EWROPS

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