AMR Begins Cuts - Management Cut Another 5%

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American Reduces Management Ranks By Another 5 Percent; Support Staff at Carrier Also Being Reduced
FORT WORTH, Texas, Apr 17, 2003 /PRNewswire via COMTEX/ -- American Airlines today begins the painful process of implementing the $1.8 billion in cost savings achieved by its employees through historic accords over the past several weeks.
As previously announced, the carrier is immediately reducing the size of its management team today by a further 5 percent. Additionally, American currently has a working group reviewing various management processes throughout the airline with a goal of reducing management ranks yet another 5 percent by July 1.
Leading up to today, American has already cut 22 percent of its management staffing since 2001. Adding in today''s reductions and those coming by July 1, nearly one of every three management positions will have been eliminated at the company.
It is critical that management continues to lead our recovery, said Don Carty, American''s chairman and CEO. Unfortunately, in what is certainly the most difficult outcome of this process, this means many individuals will no longer be active members of the American Airlines team.
American will also immediately reduce the size of its support staff by 5 percent today.
These reductions are part of the $100 million in cost savings that management and support staff will contribute to the recovery effort.
Yesterday, American received notification that the last of three tentative agreements with its unions had been ratified helping to achieve approximately $4 billion in annual savings from its operational and personnel costs.
Current AMR Corp. (NYSE: AMR) press releases can be found on the Internet. The address is http://www.amrcorp.com
SOURCE American Airlines
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Corporate Communications of American Airlines, +1-817-967-1577,
or corp.comm@aa.com
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[url="http://www.amrcorp.com"]http://www.amrcorp.com[/url]

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WingNaPrayer

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Amer Air/Mgmt Job Cuts -2: Has 8,500 Mgmt Positions> AMR


FORT WORTH, Texas (Dow Jones)--AMR Corp.''s (AMR) American Airlines began eliminating an additional 5% of management jobs as part of a plan to cut $1.8 billion in annual costs.
According to American Airlines'' $1.8 billion cost-savings proposal announced in February, $660 million of the cuts would come from pilots, $340 million from flight attendants, $620 million from Transport Workers Union-represented employees, $80 million from agents and representatives, and $100 million from management and support staff. The airline currently has about 8,500 management positions, according to its Web site.
In a press release Thursday, American said it is reviewing ways to reach its goal of reducing management ranks yet another 5% by July 1.
Since 2001, the airline has cut 22% of its management positions.
American, which has previously said it needed to cut labor costs by $1.8 billion annually to avoid an immediate Chapter 11 filing, also cut the size of its support staff by 5% Thursday. Information on the number of jobs this represents wasn''t immediately available.
On Wednesday, American received notification that the last of three tentative agreements with its unions had been ratified helping to achieve about $4 billion in annual savings from its operational and personnel costs.
Company Web site: http://www.amrcorp.com

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AOA

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Apr 4, 2003
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I wonder just how many of the layoffees were former TWA whose positions were erased due to job duplication and overlap with AMR management positions.