Airline to Cut 1,300 Mechanic Positions

By DR STEWART

American did not estimate the number of jobs at risk in Tulsa.

Executives of American Airlines, which has announced furloughs of 900 flight attendants and 200 pilots, said Thursday that it would lay off 1,300 aircraft mechanics as the company parks planes to cope with high fuel prices.

American officials said the airline would also dismiss 200 managers and support workers in its 13,000-mechanic maintenance organization.

The latest layoff announcement came as executives in American’s Maintenance & Engineering division met at the company’s offices in Fort Worth a day after American’s parent, AMR Corp., reported a second-quarter loss of $1.45 billion, or $5.77 a share. Most of the loss was attributable to a one-time charge the airline took because of the lowered value of its aircraft and routes.

Executives said in a memo to Transport Workers Union aircraft mechanics and related work groups Thursday that 1,300 was the company’s best current estimate of layoffs.

A spokeswoman for the airline, Tami McLallen, said: “We do not yet know the exact number of positions that will be impacted. We are still working through that analysis. In the meantime, we can share with you our estimate that there will be an impact of approximately 1,500 positions across the M&E organization. That impact will consist of approximately 1,300 TWU-represented positions and approximately 200 management and support staff positions.”

McLallen said the airline’s analysis was not refined enough to estimate how many jobs would be lost at each of American’s three maintenance bases or at two dozen line maintenance stations.

American’s maintenance division, which is considered the premier maintenance organization in the airline industry, includes nearly 7,000 mechanics and related workers at the Tulsa Maintenance & Engineering Center, 1,900 at Alliance Airport in Fort Worth, 900 in Kansas City, Mo., and several thousand at line maintenance stations.

McLallen said the airline would have final layoff numbers for each maintenance base and line station in “the next few weeks, not months or days.”

“We are taking steps to lessen the number of involuntary furloughs necessary by offering voluntary options, the details of which are still being decided,” she said.

“We have not made any decisions as to the specific impact to our maintenance bases or the line maintenance facilities, and we must first work through the location and degree of the voluntary leave programs.”

American said earlier this week that it would cut 200 pilots represented by the 12,000-member Allied Pilots Association.

As it did with its flight attendants, who are represented by the Association of Professional Flight Attendants, American offered an early retirement incentive plan to senior pilots. That could mitigate or eliminate the proposed layoffs.

Five-year contracts with the pilots, flight attendants and mechanics became amendable in May.

Representatives of the airline and the unions have made little progress in negotiations for new contracts. Union officials said the mood among the membership is for wage and benefit increases to compensate for the concessionary contracts of 2003. Those contracts are credited with saving the company from a bankruptcy filing.

Shares of AMR Corp. rose $1.09 or 18.7 percent Thursday to close at $6.91. More than 42.5 million shares were traded.

D.R. Stewart 581-8451

don.stewart@tulsaworld.com

Originally published by D.R. STEWART World Staff Writer.

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