Aviation woes

AMR to cut as many as 600 jobs at American Eagle

Chicago Tribune,

22 March, 2012

American Airlines parent AMR Corp. said it mustcut annual spending by $75 million at regional carrier American Eagle while paring as many as 600 jobs as the company restructures in bankruptcy.

About half of the cost reductions will come from lowering pay and reducing overtime, with the balance achieved through changing unproductive work rules, scheduling restrictions and retirement account contributions, Eagle CEO Dan Garton said Wednesday.

The Eagle plan builds on American's quest for $1.25 billion in annual labor cost reductions and 13,000 job cuts. Changes being sought in the larger airline's pilot contract will shape the amount of flying done by Eagle, which was due to be spun off before AMR's Nov. 29 bankruptcy filing.

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Lufthansa to Raise Prices, Cut Costs

The Epoch Times, 

22 March, 2012

FRANKFURT—Lufthansa AG, the biggest German airline, has warned that its total profits will experience another dip in 2012, following a loss of 13 million euros ($17 million) in 2011.

It still forecasts an operating profit of “mid three-figure million euro range” in this year, compared to 820 million euro operational profit in 2011.

The company blames the ongoing European debt crisis, high fuel costs, and fierce competition for the negative profits. Besides external conditions, Lufthansa is in the process of selling its underperforming UK subsidiary BMI British Midland that was also a major factor contributing to the losses last year.

Lufthansa faces tough competition from Middle Eastern air carriers such as Emirates and Etihad that had also recently bought a stake in Air Berlin–Germany’s second biggest carrier, and Ryanair, UK’s low budget carrier.

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Facing bankruptcy, Pinnacle execs get big pay raise

WMC-TV,

22 March, 2012

MEMPHIS, TN -

 – Memphis-based Pinnacle Airlines is struggling to prevent bankruptcy, but as part of that effort two of the company's leaders are getting big raises.

Pinnacle Airlines operates feeder flights for Delta, United and U.S. Airways and just last summer relocated its headquarters to downtown Memphis.

Now, they've announced efforts to save the company.

For article GO HERE