American Airlines

American Airlines

American Airlines told the Tulsa City Council Wednesday that it wants to move forward on hundreds of millions of dollars in planned improvements to its maintenance facility at Tulsa International Airport.

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With COVID-19 continuing to suppress air travel, American Airlines posted its biggest net loss during the pandemic to date in the third quarter: $2.4 billion.

The news comes just weeks after federal coronavirus relief funds for airlines expired Oct. 1, and American has since started laying off 19,000 workers, about 180 of them in Tulsa, where 5,000 are employed at the airline's largest maintenance base.

American Chairman and CEO Doug Parker said on a Thursday earnings call leaders just haven't made a new relief package work yet.

American Airlines

Aviation industry layoffs hit northeastern Oklahoma on Thursday.

About 180 American Airlines employees in Tulsa are included in the company’s furloughs of 19,000 workers that started Thursday. Nearly all are from the maintenance base. When American announced the layoffs in August, Transport Workers Union Local 514 President Dale Danker said the company told representatives from across the country they expected to lay off 170 maintenance workers.

American Airlines

American Airlines will drop flights to 15 smaller U.S. cities in October when a federal requirement to serve those communities ends.

The airline blamed low demand during the coronavirus pandemic, which has triggered a massive slump in air travel. Airlines and their labor unions are seeking billions in taxpayer relief.

American said its schedule covering Oct. 7 through Nov. 3 will drop flights to cities including Stillwater, Oklahoma; New Haven, Connecticut; and Springfield, Illinois.

American Airlines

American Airlines has now lost more than $4 billion in 2020 as the coronavirus pandemic continues to suppress air travel.

The carrier reported this week a $2.1 billion loss for the second quarter of 2020. That follows a $2.2 billion loss in the first quarter.

Chairman and CEO Doug Parker told investors the airline started seeing its daily cash burn rate decrease through April, May and June, however, as bookings started to pick up.

American Airlines

American Airlines plans to lay off or furlough as many as 25,000 workers this fall, and Tulsa may feel it in a big way.

American Airlines

American Airlines posted a loss of $2.2 billion for the first quarter of 2020.

Chief Financial Officer Derek Kerr said earnings projections were looking good until air travel nearly came to a halt in March.

"We began the quarter on track to exceed our guidance; however, the COVID-19 pandemic and unprecedented drop in demand during March radically changed our outlook. Given the unpredictable nature of this event, we suspended our guidance for all of 2020," Kerr said during a call with investors Thursday.

Tulsa International Airport

The U.S. Department of Transportation has awarded more than $15.5 million from Coronavirus Aid, Relief and Economic Security Act funding to Tulsa International Airport.

“Our parking revenue is down 96%. Our restaurant sales are down 98%. Our passengers just last week were down 96%. So, essentially, we have no revenue coming in, but we still have all the operating costs to operate the airport as well as our debt service payments,” said Tulsa International Airport Director of Air Service and Marketing Andrew Pierini.

American Airlines

DALLAS — A federal judge has approved American Airlines’ plan to emerge from bankruptcy protection and merge with US Airways, although the airlines must still resolve a lawsuit filed by the federal government seeking to block the merger.

A trial over that lawsuit is scheduled for November.

Thursday’s ruling by federal bankruptcy Judge Sean Lane in New York provides at least the perception that the merger is still moving forward.

KWGS News File Photo

TULSA, Okla. (AP) — Since layoff notices went out to nearly 3,000 employees at American Airlines' maintenance center in Tulsa, families of workers have been working to cope with an uncertain future.

The airline last month informed workers that their jobs could disappear in the next few months. American is struggling to cut costs and get out of New York federal bankruptcy Court.

Since the original notice, the airline has clarified that only about 150 workers will ultimately get the axe.

KWGS News File Photo

DALLAS (AP) — American Airlines says it will do repairs on 49 more planes to prevent the seats from coming loose during flight.

That's the same problem that caused the airline to ground 48 planes last week.

Airline spokeswoman Andrea Huguely said Friday that crews will add a backup locking device to seats in most of its Boeing 767s. Those are wide-body planes used on international flights.

TIA

FORT WORTH, Texas (AP) — American Airlines says it will cut passenger-carrying capacity by 1 percent in the first half of November as it tries to recover from widespread delays and a spike in cancelations.

The Fort Worth, Texas-based airline said Thursday that the pullback will give it more time to return to normal operations without affecting holiday travel.

Delays and cancelations soared in September, which American blamed on a work slowdown by some pilots. The pilots' union denied the charge.

TIA

TULSA, Okla. (AP) — Officials from American Airlines and the Transport Workers Union say the company is to lay off nearly 370 workers from its facilities in Tulsa.

The layoffs announced Friday are to be complete by February.

Officials say the fleet services workers will be laid off in November and December. The mechanics are to be laid off between December and February.

The airline announced the layoffs a day after saying that 709 mechanics, plant maintenance and logistics specialists in Tulsa elected to take an early-retirement option.

Tulsa International Airport

FORT WORTH, Texas (AP) — American Airlines and American Eagle say they will cancel 300 flights this week to cope with a high number of pilots reporting sick and an increase in maintenance reports filed by crews.

That's 1.25 percent of the 24,000 flights that were scheduled by the two airlines, which are owned by Fort Worth-based AMR Corporation.

AMR said Wednesday that it canceled the flights in advance to avoid inconveniencing passengers. Earlier this week, American said it would cut its schedule through the end of October by up to 2 percent.

American Lay-Offs Will Hit Local Economy

Sep 19, 2012
KWGS News File photo

The pending lay-offs at American Airlines in Tulsa will have a ripple effect on our economy.

The Executive Director of the Oklahoma Aerospace and Defense Alliance is Mary Smith. She says aerospace is one of the largest industries in Oklahoma. With nearly 1,000 jobs expected to evaporate all segments of the economy will feel the impact.       

Smith says the supply chain, and not just aerospace companies,  will feel the impact for the lay-offs which are set to begin in November..

American is trimming its work-force as part of its effort to get out of bankruptcy.

American Airlines Lay-Off Notices

Sep 18, 2012
KWGS News File photo

American Airlines is moving forward with its plans to begin lay-offs at the Tulsa Base.

The first round of lay-offs will be on November 16th. The second round will take place in December.

The bankrupt airline is shedding workers as it tries to make its way out of bankruptcy. The airline says the exact number of people to be let go is still in flux. They won't know the exact number until later, but the company says the lay-offs will be less than first feared.

Job Loss Numbers for AA in Tulsa

Sep 11, 2012
KWGS News

The other shoe is about to drop.

Bankrupt American Airlines will close its Alliance Center in Fort Worth and lay-off 839-workers at its Tulsa plant.

At one time the Tulsa lay-offs were projected to be closer to 2,100. The cuts will take place by the end of the year. It is all apart of the the airline's restructuring efforts to get out of bankruptcy. The Tulsa union recently approved a new contract with the airline. At the same time, American is exploring the possible merger with USA Airlines.

DALLAS (AP) — Leaders of the pilots' union at American Airlines have raised the threat of a strike and also met with the CEO of US Airways, which is pursuing a labor-backed merger with American.

The Allied Pilots Association says that it will hold a strike-authorization vote as soon as American tries to use the bankruptcy process to throw out its contract with pilots and impose new pay and work rules.

The airline said that a strike would be illegal.

KWGS News

The votes are in, and American Airlines mechanics and warehouse workers have okayed a contract offer from the company. The same two groups were the only unions out of seven to turn down an earlier offer. Voting had been going on the past couple of weeks on this new offer, which union leaders describe as slightly better than the offer that was turned down by their members. If the agreement had been rejected, the matter would be in the hands of a bankruptcy judge. Under terms of this contract, there will still be more than a thousand jobs cut at the Tulsa maintenance base.

KWGS News

American Airlines mechanics are again voting on a contract. This time local union leaders are urging a yes vote. The last, best offer from the company was voted down, but after weeks of continued negotiating…a revamped contract is being decided upon. Last time around, union leaders didn’t make a recommendation one way or the other. This time it’s different. Sam Cirri is the local union president. He says this latest offer is only slightly better than the one turned down, but this time a yes vote is being recommended.

KWGS News photo

DALLAS (AP) — A labor union says it has tentative contract agreements that would grant pay raises for mechanics and other ground workers at American Airlines.

The Transport Workers Union says a ratification vote will end in August before a federal bankruptcy court judge rules on whether American can impose its own terms for pay and benefits. The contract proposal calls for a 3% increase in pay. That is the same pay-hike offered to the pilot’s union.

KWGS News

A federal judge again delays a decision on whether to void union contracts at American Airlines. Transport Workers Union organizer Rick Mullings says it’s to give more time for negotiations to see if an agreement can be reached. He says talks have been on hold while the company negotiated with the pilots.

The pilots’ union board has agreed to order a ratification vote on American’s latest offer, and the company will resume negotiations with mechanics and flight attendants next week.

Tulsa International Airport

DALLAS (AP) — American Airlines says a federal bankruptcy judge has delayed a ruling scheduled for Friday on whether it can break its contracts with unions and impose cost-cutting steps including layoffs.

The judge set a new deadline of June 29.

The delay gives the company and unions more time to negotiate voluntary cost-cutting agreements that the unions have so far resisted.

Copyright 2012 The Associated Press.

KWGS News File photo

DALLAS (AP) — The pilots' union at American Airlines has rejected the company's latest contract offer. The move could clear the way for a judge to decide whether American can impose its own cost-cutting terms, including layoffs.

The union board voted 11-5 on Wednesday to reject the company's offer.

A federal bankruptcy judge is scheduled to rule tomorrow on whether American can break its current contracts with pilots and other union workers. The pilots' union wants a delay in that ruling.

American and parent AMR Corp. filed for bankruptcy protection in November.

Beryl Ford Collection / Tulsa City-County Library

(StateImpact Oklahoma) "Rejection came from two groups: store clerks and mechanics, the union’s largest group at the Tulsa maintenance base. The fate of 2,100 Tulsa-area workers is now in the hands of a bankruptcy court. So what motivated mechanics to reject the airline’s offer? Anger..." 

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Tulsa American Airlines union leaders urge members to vote on a ‘last best contract’ offer, but refuse to take a stand and encourage a vote up or down. Transport Workers Union negotiator John Hewitt calls it a concessionary contract, which means pay cuts and benefit losses no matter which way the vote goes.

Hewitt says, on the positive side, a yes vote would save about 13-hundred jobs in Tulsa. A no vote would give the bankruptcy court authority to terminate the current contract and the company would then impose new terms. Voting starts tomorrow and continues through Monday.

Beryl Ford Collection / Tulsa City-County Library

(StateImpact Oklahoma) "American Airlines in February detailed a bankruptcy-restructuring plan that eliminated 2,100 jobs from its Tulsa maintenance base. Workers are worried about their jobs, and business leaders are concerned layoffs could mean losing about 10 percent of the area’s aerospace workforce. And while the bulk of the base’s employees live in big-city Tulsa, the bankruptcy could have a much bigger impact on small towns, data show."  Read More

KWGS News File Photo

US Airways Group Inc. says it has made deals with the three unions at American Airlines.

The contracts would cover American Airlines workers if there's a merger with US Airways. However, US Airways says no deal on a merger has been made.

American is reorganizing under Chapter 11 bankruptcy protection. Its executives have said they want to emerge from bankruptcy as a stand-alone airline.

US Airways says the deals are with the Transport Workers Union, the Association of Professional Flight Attendants, and the Allied Pilots Association.