Some Work Going to IBM

By Trebor Banstetter, Fort Worth Star-Telegram, Texas

Mar. 3–American Airlines will outsource some of its human-resources work to IBM in a deal worth $217 million.

Officials confirmed the deal Friday but said it will not result in layoffs. Workers whose jobs are going to IBM will be transferred to other departments, and a few will have the opportunity to work for IBM, American spokeswoman Sue Gordon said.

“It will cover health and welfare, some pension management, compensation administration, things of that nature,” Gordon said.

She said American expects to save about $60 million over the course of the 7 1/2 -year contract. Most of the 200 jobs affected are based at the airline’s Fort Worth headquarters.

Although it does some outsourcing, American has resisted the industry trend of outsourcing aircraft maintenance. The airline took the opposite approach of keeping its maintenance facility open and performing outside work for other airlines.

Shares of AMR Corp., American’s parent company (ticker: AMR), closed at $32.88 per share, down 85 cents, in trading Friday.

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Trebor Banstetter, 817-390-7064 tbanstetter@star-telegram.com

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Copyright (c) 2007, Fort Worth Star-Telegram, Texas

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