Closing Alliance operation among American's options
By Trebor Banstetter
Star-Telegram Staff Writer
FORT WORTH _ American Airlines executives are considering consolidating its maintenance operations to save money _ a move that could close the airline's base at Alliance Airport in Fort Worth.
Airline officials confirmed Thursday that they are considering a base consolidation. But they also stressed that they are evaluating options that would keep all three of American's maintenance bases open.
We're looking at all of our options with the same intensity, said Todd Burke, a spokesman. We continue to look at every aspect of our business in search of cost-cutting opportunities, he said.
In addition to Alliance, American has maintenance and engineering operations in Kansas City, Mo., and Tulsa, Okla.
Randy McDonald, president of the Tulsa chapter of the Transport Workers Union, which represents American's mechanics and ground workers, is writing letters to American executives and board members urging them to keep its maintenance bases open, The Associated Press reports.
Local union officials did not return phone calls to the Star-Telegram Thursday.
American has about 2,300 employees at the Alliance base, and 2,400 workers at its Kansas City facility. The Tulsa base has 9,100 employees.
The potential closure of one of those bases was seen as a major threat when ground workers were pondering whether to accept $620 million in concessions last month.
In early April, American executives told labor leaders that they would consolidate maintenance work at the Tulsa base, and outsource some operations to independent contractors, if workers rejected concessions and the company filed for bankruptcy. That would have meant shutting down the Alliance and Kansas City operations.
American has lost $6.2 billion during the last 27 months as it struggles with a steep downturn in business travel and fierce competition from discount airlines such as Southwest Airlines and AirTran Airways.
The company is in the midst of a massive cost-cutting drive in an attempt to return to profitability. Executives have targeted $4 billion in annual cuts, which include $1.8 billion in employee concessions approved last month.
American says it is cutting more than 7,000 jobs companywide under the new union contracts. The airline is expected to take a substantial charge during the second quarter related to severance and benefits for furloughed employees.
More than 1,500 ground workers are expected to lose their jobs, but it's not clear how many of those work at American's maintenance bases.
American has already has some success in cutting maintenance costs as it retires airplanes and reduces flights. The airline spent $231 million on maintenance, materials and repairs during the first quarter, down from $266 million during the first quarter of 2002.
Maintenance accounted for about 5 percent of American's total operating expenses during the quarter.
Trebor Banstetter, (817) 390-7064
[email protected]
http://www.dfw.com/mld/dfw/business/5976236.htm
By Trebor Banstetter
Star-Telegram Staff Writer
FORT WORTH _ American Airlines executives are considering consolidating its maintenance operations to save money _ a move that could close the airline's base at Alliance Airport in Fort Worth.
Airline officials confirmed Thursday that they are considering a base consolidation. But they also stressed that they are evaluating options that would keep all three of American's maintenance bases open.
We're looking at all of our options with the same intensity, said Todd Burke, a spokesman. We continue to look at every aspect of our business in search of cost-cutting opportunities, he said.
In addition to Alliance, American has maintenance and engineering operations in Kansas City, Mo., and Tulsa, Okla.
Randy McDonald, president of the Tulsa chapter of the Transport Workers Union, which represents American's mechanics and ground workers, is writing letters to American executives and board members urging them to keep its maintenance bases open, The Associated Press reports.
Local union officials did not return phone calls to the Star-Telegram Thursday.
American has about 2,300 employees at the Alliance base, and 2,400 workers at its Kansas City facility. The Tulsa base has 9,100 employees.
The potential closure of one of those bases was seen as a major threat when ground workers were pondering whether to accept $620 million in concessions last month.
In early April, American executives told labor leaders that they would consolidate maintenance work at the Tulsa base, and outsource some operations to independent contractors, if workers rejected concessions and the company filed for bankruptcy. That would have meant shutting down the Alliance and Kansas City operations.
American has lost $6.2 billion during the last 27 months as it struggles with a steep downturn in business travel and fierce competition from discount airlines such as Southwest Airlines and AirTran Airways.
The company is in the midst of a massive cost-cutting drive in an attempt to return to profitability. Executives have targeted $4 billion in annual cuts, which include $1.8 billion in employee concessions approved last month.
American says it is cutting more than 7,000 jobs companywide under the new union contracts. The airline is expected to take a substantial charge during the second quarter related to severance and benefits for furloughed employees.
More than 1,500 ground workers are expected to lose their jobs, but it's not clear how many of those work at American's maintenance bases.
American has already has some success in cutting maintenance costs as it retires airplanes and reduces flights. The airline spent $231 million on maintenance, materials and repairs during the first quarter, down from $266 million during the first quarter of 2002.
Maintenance accounted for about 5 percent of American's total operating expenses during the quarter.
Trebor Banstetter, (817) 390-7064
[email protected]
http://www.dfw.com/mld/dfw/business/5976236.htm
