American Airlines to reduce flights in the fourth quarter
September 13, 2011, 04:05 pm
A recent spike in retirement among American Airlines pilots has precipitated a reduction in flight offerings from the flight service provider, according to The Associated Press. AMR, American Airlines' parent company, says a poor economy also contributed to the flight reduction.
This month, AMR expects 111 pilots to retire, 10 times the normal average. This is likely due to a clause in American pilots' contract that allows them to lock in retirement benefits retroactively for up to 90 days. As AMR's stock continues to see significant declines in the market, many pilots are jumping ship in an effort to lock in more favorable retirement benefits secured before the stock market's decline, according to the source.
Despite the company's recent struggles, officials maintain that the airline remains financially secure. Treasurer and vice president of corporate development for American Beverley Goulet said there is no internal talk of bankruptcy.
"Our performance has lagged the industry," Goulet told the AP, "but I think the steps we're taking are all designed to address those and to bring our results better in line."
According to the Bureau of Labor Statistics, employment for airline pilots, copilots and flight engineers is expected to increase by 8 percent between 2008 and 2018.
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