American Airlines outlined yesterday a business plan to transform the airline and restore it to industry leadership, profitability, and growth. The plan targets an annual financial improvement of more than $3 billion by 2017, including $2 billion in cost savings and $1 billion in revenue enhancements.
The plans build on initiatives already in place that reduced costs significantly over the past several years, including major changes to its route structure, network, capacity, and fleet. American intends to realize additional savings over the next six years by restructuring debt and leases, grounding older planes, improving supplier contracts, and undertaking other initiatives.
American also informed employees earlier that all groups, including management, must reduce their total costs by 20 percent. These reductions would result in average annual employee-related savings of $1.25 billion from 2012 through 2017, which adds up to be roughly 13,000 total employees.
Chairman and CEO Tom Horton stated, "We have an extraordinary opportunity to create a new world-class airline, with a leaner, customer-focused culture of accountability and high performance. The best way for us to achieve this – and ensure that we are in control of our own future – is to make the necessary changes, complete our restructuring quickly, and continue working hard to put American Airlines back in a position of industry leadership,"
American's plan cuts 13,000 employees
Corporate - February 2, 2012 - 10:18am by btsocial
American Airlines outlined yesterday a business plan to transform the airline and restore it to industry leadership, profitability, and growth. The plan targets an annual financial improvement of more than $3 billion by 2017, including $2 billion in cost savings and $1 billion in revenue enhancements.
The plans build on initiatives already in place that reduced costs significantly over the past several years, including major changes to its route structure, network, capacity, and fleet. American intends to realize additional savings over the next six years by restructuring debt and leases, grounding older planes, improving supplier contracts, and undertaking other initiatives.
American also informed employees earlier that all groups, including management, must reduce their total costs by 20 percent. These reductions would result in average annual employee-related savings of $1.25 billion from 2012 through 2017, which adds up to be roughly 13,000 total employees.
Chairman and CEO Tom Horton stated, "We have an extraordinary opportunity to create a new world-class airline, with a leaner, customer-focused culture of accountability and high performance. The best way for us to achieve this – and ensure that we are in control of our own future – is to make the necessary changes, complete our restructuring quickly, and continue working hard to put American Airlines back in a position of industry leadership,"