American Airline Cuts Continue

: Chris Lee Law Firm

  Filed under: Chapter 11

american eagleThe hits just keep on coming in the American Airlines bankruptcy case. As one of the most followed Chapter 11 cases in history, the company has been making some controversial moves. After recent news broke about 13,000 job cuts a few weeks ago  more cuts are being made to their sister airline, American Eagle.

Airline Antics

AMR, the parent company to American Airlines, announced another round of employee layoffs this week. This time the company’s smaller airline, American Eagle, will lose 50 pilots and ground nine of its smaller fleet. American Eagle is the airline’s smaller carrier offering more flights to regional locations, a direct competitor to Southwest Airlines.

American Eagle CEO, Dan Garton, said in a statement, “While any reduction in force is regrettable, it is an unfortunate reality in the competitive business we are in. In order to lower our costs and ensure Eagle is in line with the rest of the regional industry, we must carefully manage staffing levels to support the amount of flying we are asked to provide.”

The job cuts are planned for April 5th, in which many junior pilots will be dismissed with the option to be placed on the airline’s recall list when profitability returns. These cuts are the second round to be ordered for American Eagle, who lost 100 employees at the beginning of the bankruptcy case.

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