American outlines benefit changes for flight attendants, mechanics and ground crew

Following the judge's approval of new contracts with the mechanics and flight attendants, American outlined some of the benefit changes that will be coming in the next few months.

The Fort Worth-based carrier also officially announced it was closing its Alliance Fort Worth maintenance facility by April 2013.

"As we work to streamline all areas of our business and dramatically reduce our costs, it’s simply not efficient to have three maintenance bases performing work. In addition, we will move forward this month with our plans to better align with other airlines and use third-party providers for some of our maintenance," said American spokesman Bruce Hicks. "Fortunately, we are able to offer many of our people voluntary early out options and alternative positions at other American Airlines maintenance locations."

As it had previously stated, American plans to keep its engine repair shop which is a joint venture with Rolls-Royce open at Alliance.

For union workers, American said retirement plans will freeze with no new benefits accrued after October 31. After that, the company will begin contributing a dollar-for-dollar match up to 5.5 percent into a 401(k) plan for employees.

"In addition to these benefit changes, the company will now move forward with the implementation of other restructuring changes that vary by department or employee group," said American senior vice president of people Denise Lynn. "There will be changes in our airports, maintenance and cargo operations, among others, as the process moves forward - and you should expect to receive more specific information about implementation plans from your operating leadership."

Click here to download the full letter from Lynn sent to employees

And keep reading for the full statement from Hicks about the closing of Alliance.

-Andrea Ahles

American Airlines spokesman Bruce Hicks.

"Today, Judge Lane approved our contracts with the TWU M&R and Stores workgroups, and we will begin to move forward with plans we announced earlier this year, including closing our Maintenance & Engineering base located at Alliance Airport in Fort Worth, Texas. As we work to streamline all areas of our business and dramatically reduce our costs, it’s simply not efficient to have three maintenance bases performing work. In addition, we will move forward this month with our plans to better align with other airlines and use third-party providers for some of our maintenance. For this reason, we anticipate operations at our Alliance base will wind down by the end of the year. With the exception of work performed at Texas Aero Engine Service LLC (TAESL), our joint venture with Rolls-Royce based at Alliance, the base will close by April 2013.

"Fortunately, we are able to offer many of our people voluntary early out options and alternative positions at other American Airlines maintenance locations. While it is necessary to restructure our maintenance system to best serve the needs of today’s operation and fleet, it does not make these decisions any easier. We remain committed to moving forward so we can return American to its rightful place as an industry leader."

Comments

[John S]

The retirement plan freeze isn't a surprise. I'm glad for the employees sake that the plans were not terminated, as in some other airline bankruptcies.

[DG]

One other positive, if there is any, is the extra cash from the equity stake we will have in our pockets soon enough. Although some of us have questioned whether we could have had a bigger chunk if our union had kept its eye on the immediate ball rather than jump into bed with Doug Parker, the overall outcome in this respect is not that bad.

A lot of us are still in total shock about why the pilots would walk away from a pretty decent offer, especially the equity.

[chris]

I wouldn't call the lbfo a decent offer. Let me know how decent that offer is 10 years from now when you are still working under it. All for a little bit of an equity offer that has an unknown value.

[wingman]

sad to see tehse changes bu t know they are necessary to go on and grow again...rhe equity may jsut be a false flag for us because we stil have no idea waht Little qnd crew are going to do with it...the flight atttenfants are the only ones that have a plan...there was no announcement on theis from the APA either...if the APA is anythign like the TWU some of or all of the stake coudl be kept for union purposes...youjust never know

[airlinerealist]

chris, I don't think anyone is saying these are ideal offers. But remember, it's bankruptcy.

I hope that in ten years AA is making packets of money and the employees are far better off than they are today. But to get there, tough choices are having to be made today.