Catherwood LibraryILR School

With losses of $1.8 billion in 2001, $3.5 billion in 2002, liquid assets of less than $2 billion, and daily losses of $5 million, American Airlines yesterday made a formal request for concessions from its unionized workers after being criticized for repeatedly insisting on the necessity of concessions but not asking for them (see WIT for Jan. 22, 2003). The struggling carrier is seeking to permanently reduce its labor costs by $1.8 billion per year---with ninety percent of those savings to come from $660 million in pay and benefit concessions from pilots, $340 million from flight attendants, and $620 million from mechanics, ramp workers and other non-flight workers. The responses from the Allied Pilots Association, Association of Professional Flight Attendants, and Transport Workers Union were less than enthusiastic as union officials pointed out that management had still failed to provide the workers with details, and said that they were withholding comment until after an informational meeting scheduled this Friday.