(RTTNews) - AMR Corp. (AMR, AAMRQ.PK) will outsource 1,200 airport services positions at seven airports that have fewest daily flights. All domestic, cargo, Skycap, bag drop, baggage service and passenger service representative positions will be outsourced. Internationally, the company will outsource airport operations in Calgary and Vancouver.
The airline will close Admirals Clubs at Dulles and Kansas City and separate premium services representative positions into two levels based on complexity, skill, experience and training. Admirals Clubs in Panama City and Santo Domingo in the Dominican Republic also will be closed.
The company has decided to close the Reservations Office in Tucson. Employees will be offered jobs at other offices or as home-based workers. Around 800 representatives will be moved to home-based positions.
The carrier will discontinue the 1.5 percent lumpsum payment for 2012, but will implement a 1.5 percent annual rate increase from 2013 to 2017. Holidays will be reduced from 10 to five, and will discontinue paid personal days off, among other initiatives.
"Not a single decision that affects a single employee was made lightly," a letter from the company said. The letter was signed by Craig Kreeger, senior vice president for customer experience,Virasb Vahidi, chief commercial officer, and Jim Ream, senior vice president for operations.
Jeff Brundage, Senior Vice President, Human Resources, said the Agent, Rep and Planner or ARP workgroup, must achieve cost savings of 20 percent. The management redesign will shrink the overall number of management and support staff positions by around 15 percent.
Most of the plan will be implemented in the next two to three months.
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