Kansas City officials are keeping up the push to convince American Airlines to keep open its overhaul base at Kansas City International Airport and they’re asking for help from Governor Bob Holden. Kansas City Mayor Kay Barnes has traveled to Jefferson City to discuss the issue with the Governor. Kansas City has already offered to put a $200-Million bond package on the table for American Airlines. As for whether that’s good enough to influence American’s decision, Mayor Kay Barnes won’t speculate. The state is kicking in about $600,000 of that total and is being asked for more. Governor Holden says the state wants to do its part to help sweeten he pot. American has indicated it will make a decision this Fall on the carrier’s KCI maintenance base and the 2,300 jobs at that facility. KCI is in competition with American facilities in Texas and Oklahoma.
American Airlines Announces Job Cuts In St. Louis
American Airlines has made a major decision regarding its hub at Lambert Field in St. Louis. American has decided to cut approximately 2,000 jobs in St. Louis and will reduce the number of daily flights from 417 to 207. The announcement came as the airline unveiled its quarterly earnings report. American posted a net loss of $357-Million. Senator Christopher Bond, who had pressed American to keep the operations going, says he’s not happy that American has not kept a promise. Governor Bob Holden says that while the job losses are difficult to accept, at least Lambert will still be one of American’s hub airports. There is decision, yet, on the future of American’s maintenance base at Kansas City International Airport.
Situation At American Airlines In Limbo After Carty Resignation
American Airlines officials say they could file for chapter 11 bankruptcy protection as early as today unless the carrier’s unions accept wage and benefit concessions. The warning follows the decision by American’s Chief Executive Officer Don Carty to resign. The resignation comes in the wake of revelations that airline executives received huge bonuses after workers had initially agreed to take pay cuts. Senator Jim Talent has responded to the Carty resignation, saying it marks a new beginning for former TWA employees and American Airlines. Talent says Carty failed to keep the commitments made to former TWA employees.
American Airlines Hasn’t Made a Decision on St. Louis
The top financial officer of American Airlines says it is impossible to tell how many of the employee layoffs announced last week will be premanent. Jeff Campbell says the airline is doing everything it can to save money. Campbell adds the airline hasn’t determine how its cost-saving moves will affect St. Louis. He says the undertaking is so large, the company hasn’t had time to consider what to do with the operations it acquired when it absorbed Trans World Airlines and took over the TWA hub at Lambert St. Louis International Airport.
American Airlines Cutting 7-Thousand Jobs
American Airlines is cutting 7,000 jobs as part of what the airline calls a massive restructuring. The 7,000 jobs represent about 6 percent of American’s work force. An American Airlines spokesman confirms many of the job cuts will be in St. Louis. 550 pilots will be laid off. All are based in St. Louis and are former TWA pilots. St. Louis Francis Slay fears there could be even greater job losses in his city. He believes St. Louis could lose up to 1,400 jobs. Specifics regarding the job cuts have not yet been finalized.
