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American Airlines Plans Of Outsourcing Jobs

1436 words - 6 pages

American Airlines is one of the major airways in U.S, with its headquarters located in Fort Worth, Texas. It was founded in 1930 and began operating in 1934 as American Airways. It has been conducting extensive domestic and international scheduled flights to Europe, Asia, the Caribbean, South America, and North America. This airline has five main network centers located in airports of key cities. These include, Miami, New York City, Los Angeles, Chicago, and its main base Dallas. The actual CEO of the company is Doug Parker, the chairman is Tom Horton, and the president is Scott Kirby. In the past years, American Airlines faced a downfall in its profits which caused serious injuries to the company.
In February 1st of 2012, American Airlines Company made the decision of cutting 14,000 jobs, which 13,000 of them included union workers from a staff of 80,000 employees. This decision heavily affected the maintenance operation’s airline staff, as their job was going to be outsourced overseas. The plan consisted in cutting 4,600 mechanic systems in the U.S, including a complete closure of its heavy maintenance facility at Fort Worth’s Alliance Airport. Larry Pike, president of the local Transport Workers Union announced in an NBC 5 interview that the jobs in Fort Worth’s Alliance Airport will be the portion outsourced in a Hong Kong aircraft maintenance company named Haeco.
Nick Soldevere, an aircraft maintenance crew in Fort Worth’s said “We do pride ourselves on our maintenance work,” but the pride has turned into fear because most of the people working for the maintenance department are going to lose their jobs as the company plans outsource to Hong Kong. “Right now, the level of concern is very high.”

As of 2012, the decision of cutting jobs and outsourcing, was made due to the consecutive loss of profit seen in past four years. In 2008 and 2009, American Airlines recorded a net loss of $2.1 and $1.5 billion each year. In addition, in 2010, the company recorded a net loss of $471 million for the year. In 2011, the parent company of American Airlines, AMR Corporation filed a chapter 11 bankruptcy protection because of a lack of pilots due to retirement and a net loss of $286 million for the second half quarter of 2011. In other words, a loss of $0.85 per share compared to $11 million, or $0.03 per share in the second quarter of 2010. The second quarter of 2011 was fully impacted by expenses on fuel that increased 31 percent compared to the second quarter in 2010. Also, at the end of the second quarter of 2011, the company had a debt of $17.1 billion that includes, its long-term debt, capital lease obligations, the principal amount of airport facility tax-exempt bonds, and the present value of aircraft operating lease obligations. Owing to these losses, American Airlines was forced to go under bankruptcy causing the decision of putting thousands of loyal American workers in the streets and giving these jobs to overseas companies.
Tim Pike said...

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