Dallas Job Market Could Take Hit From American Airlines

Dallas Job Market Could Take Hit From American Airlines

American Airlines is the latest of the airline companies to announce cost-cutting methods to boost their numbers. The parent company of the airliner wants to shed some 13,000 jobs. That amounts to about 15 percent of its entire workforce nationwide. The goal for the company is to give itself a fighting chance as it pulls out of bankruptcy protection in the coming months.

Shedding Jobs Fast

In order to pull itself out of bankruptcy, American Airlines must find a way to reduce labor costs by as much as 20 percent. The company, which is the third largest in the United States, will begin working with its three unions to find where jobs will be cut. No specific positions were announced but the company did say it plans to slash worker and management jobs.

Also in cost cutting, the company wants to end traditional pension plans, something it continues to offer its employees. This is something that the unions have worked hard to preserve for the employees, though.

The CEO of the company, Thomas Horton, stated that the goal is to make American Airlines more profitable. To do that, they are cutting spending across teh board to save about $2 billion a year. They are also taking steps to increase revenue in the company by as much as $1 billion annually. To do this, the company has announced new files to 20 additional markets.

There is no official news on how many jobs the Dallas Fort Worth area could lose from the American Airlines cut, but there is an established presence here and that means it could affect the local workers.