Sunday, February 5, 2012

American Cutting Boise Services, Aims to Slash Thousands of Jobs

Posted By on Sun, Feb 5, 2012 at 9:40 AM

This coming Thursday, Feb. 9, American Airlines clips its Boise wings.

American will cut its daily service between Boise and Los Angeles. Currently, American Eagle flies from Boise to the City of Angels twice a day, at 10:35 a.m. and 3:20 p.m.. Beginning Friday, United will remain the only airline with direct service from Boise to Los Angeles.

When or if American resumes its Boise to L.A. flights anytime soon may be hampered by its current financial status. The bankrupt airline announced Friday it wants to slash 13,000 jobs and terminate employee pension plans. Company officials said they need to reduce operating expenses by more than $2 billion annually. Layoffs and other employee-related cuts would comprise more than half of the total savings.

American lost $10 billion over the past decade and financed its red ink with further debt. Meanwhile the last 10 years was marked by a recession and skyrocketing fuel prices.

American has 73,082 full- and part-time employees and its regional carrier American Eagle has 14,237 full- and part-time workers.


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