American Air wants slowdown in JFK airport plan
4:30 p.m. 04/09/2003 Provided by
NEW YORK, April 9 (Reuters) - Teetering on the brink of bankruptcy, American Airlines, the world''s largest air carrier, is discussing the possibility of slowing construction of a new $1.3 billion terminal at John F. Kennedy International Airport, a spokesman for the airline said on Wednesday.
The threat of bankruptcy still looms heavy for American, a unit of AMR Corp.(AMR), currently in talks with union leaders who are asking to shorten the duration of wage concession deals struck last week.
The airline is in discussions with the Port Authority of New York and New Jersey, the airport operators, to defer construction on the eastern phase of the project as part of an effort to conserve cash, said Al Becker, a spokesman for the airline.
This is only one of many steps American is taking as part of a wide-ranging program to reduce its overall costs by about $4 billion a year, he said.
American will still continue work on the central phase of the project, Becker said, including a new Concourse C, expected to be completed by the first quarter of 2005.
A spokesman for the Port Authority was not immediately available for comment.