May 22, 2012
American Eagle Airlines is cutting management in a move similar to that recently undertaken by sister carrier American Airlines.
The regional carrier has targeted $7 million in annual management and support staff labor savings as part of parent company AMR Corp.’s bankruptcy restructuring. The latest cuts are an attempt to reach a goal of 10% management and support staff cuts, American Eagle CEO Dan Garton says in an internal letter to employees.
Eagle is eliminating up to 100 non-union management and support staff positions, although the exact number remains unclear. Some of the positions currently are unfilled and simply will be eliminated, and Eagle expects attrition to account for some more of the losses, but employees will be cut under this initiative.
As part of the restructuring, the carrier’s safety organization will now report to Chief Operating Officer Fred Cleveland. Ed Criner, who had overseen safety, is retiring.
Dave Brown, VP in charge of airport services, also is stepping down, and job cuts are now being implemented in operations, finance and human resources. Changes in the company’s information technology department are expected to follow.
The 10% reduction target includes a 15% decrease in top management positions, Garton’s letter says. These cuts are beginning now, with further reductions expected soon.
AMR had set a goal of a 20% reduction of management and support staff for its American Airlines division to be completed by the end of the summer.