American Airlines to reduce jobs without layoffs

DALLAS  — American Airlines says that because of job-sharing and other steps, it won't have to furlough 500 flight attendants this spring. American said two weeks ago that it planned to cut 500 flight attendants because it's flying less than it did a year ago. The company and the Association of Professional Flight Attendants said Wednesday that the furloughs won't be needed because so many workers signed up for job-sharing and voluntary leave.

The union called it "tremendous news for all of our members." The good news is temporary, however. The furloughs were to be on top of 13,000 jobs that American still wants to eliminate under a bankruptcy reorganization plan. American and parent AMR Corp. filed for bankruptcy protection in November. CEO Thomas Horton has said the airline will shrink modestly while it reorganizes. Passenger-carrying capacity was down 2.1 per cent in January compared with January 2011, with most of the reduction on routes within the US.

American has said it will increase flying by 20 per cent at its five US hubs over the next five years after emerging from bankruptcy protection with lower costs.