American Airlines Aims To Cut 13,000 Jobs Amid Bankruptcy

American Airlines cutting 13,000 jobs
American Airlines cutting 13,000 jobs

By David Koenig

DALLAS -- The parent of American Airlines wants to eliminate about 13,000 jobs -- 15 percent of its workforce -- as the nation's third-biggest airline remakes itself under bankruptcy protection.

The company aims to cut labor costs by 20 percent under bankruptcy protection, and will soon begin negotiations with its three major unions. Some management jobs would also be cut.

AMR also proposes to end its traditional pension plans. The move has been strongly opposed by the airline's unions and the U.S. pension-insurance agency.