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February 09, 2012

American layoffs will impact DFW but negative effect will be limited, Fitch Ratings says

The Dallas/Fort Worth region could lose several thousand jobs as a result of American Airlines' proposed restructuring plan announce last week, according to a ratings firm.

"There will be a noticeable impact from the pending American Airlines layoffs on the Dallas-Fort Worth region as a whole, but anticipates limited negative effects to individual cities given the breadth of the employment base," Fitch Ratings said on Thursday.

Last week, American's parent company, AMR Corp., proposed to reduce its overall workforce by 13,000 employees, including 1,200 workers at its Alliance Fort Worth maintenance facility which the carrier wants to close.

Fitch also estimates that a majority of the 1,400 management positions that would be cut in AMR's restructuring plan will occur at its corporate headquarters in Fort Worth.

The full Fitch note is below.

-Andrea Ahles

Fitch: AMR Layoffs Will Affect Dallas-Fort Worth

Fitch  Ratings  says  there  will  be  a noticeable impact from the pending American  Airlines  layoffs on the Dallas-Fort Worth region as a whole, but anticipates limited negative effects to individual cities given the breadth of the employment base.

American  Airlines'  parent  company  AMR has proposed reducing its overall workforce by 13,000 employees as part of a cost-cutting plan to allow it to emerge  from  bankruptcy.  This  action could result in the loss of several thousand jobs in the Dallas-Fort Worth metropolitan area. American Airlines and its regional affiliate, American Eagle, are, by far, the major carriers at  the Dallas-Fort Worth International Airport. In 2011 they accounted for approximately 85% of Dallas-Fort Worth's enplanements. American Airlines is also one of the largest employers in the region with roughly 25,000.

Over  the  past  decade,  the  area  has  weathered the ebb and flow of the airline  industry's  fortunes. Fort Worth's unemployment rate climbed above 8%  in  2003  due in part to layoffs at AMR. At the same time, the regional economy  has  continued  to  grow  and  diversify,  with  a labor force now exceeding three million. The Dallas-Fort Worth-Arlington MSA is the largest in  the  South  and  recorded a 7.1% unemployment rate in December of 2011, well below the U.S. average.

We  believe  that  two  of the proposed cuts have the potential to directly impact  employment  in  the city of Fort Worth. The company's plan includes the closure of the Alliance Airport maintenance facility in Fort Worth that has  approximately  1,200 employees. The company has also proposed reducing
1,400  management  positions  nationwide,  and it is possible a majority of these  layoffs  could  occur  at  corporate  headquarters in Fort Worth. We expect  the  impact  of  other  proposed cuts, such as those to Dallas-Fort Worth  airport-based  maintenance  staff,  to  be spread around a number of
communities in the metropolitan area.

 

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Comments

seabass

How about laying off some of the 25-30 VP's running around? That ought to save a chunk of change :)

andy b

its very sad after working soo long and hard american airlines decided that my contributions as an employee was not good enough. i helped saved the company from bankruptcy in 2003 with all the pay cuts and holidays and sick days and vacation i had to give back.i and the rest of the back then 96000 plus employees whom we give back and even though we were angry when the company shared 371 million dollars in one year to their management and 270 million in another year again to their management we did not expect them to go into bankruptcy because they could not collect another 800million dollars from their employees. now i am based in miami and this is just not a good time for the employees over here. and i know my fellow employees in dallas are troubled just like the rest of us. but remember american airlines are NOT cutting jobs but the employees who actually does the jobs. so that is why it does not affect the cities around dallas or miami or for anywhere american flies. except for the base that they are actually closing {1200 jobs} the rest of the jobs will be done by other people where the company will pay them at minimum pay and no benefits. i know times are hard but i am really sorry to say it but i have to. slavery was abolished over a 100 years ago and to think AMERICAN AIRLINES could try to bring that back in this year at this time really really shocks me. now the airline may be angry with me but if you look at the big picture that is exactly what the normal person will see. now i believe in this country and i believe in the freedom of speech and press and i believe this company had gone about and approach this situation in a wrong manner. i dont hold a P.H.D OR A M.D OR EVEN A B.A OR B.S degree but what i do have is comman sense that my parents taught me how to use, and thats all american airlines had to use just plain old comman sense and they would have been still the #1 airlines and have the #1 group of employees. i know how to use my comman sense to get this airline out of bankruptcy and still have contented employees. anyway i pray things will work out for the best for everyone.

Badger

Hope the layoffs free up some seats in the boarding areas from the herd of rampers always on break.

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