American reveals restructuring progress

American Airlines outlined (16-Jan-2013) its latest progress made in its restructuring plan during 2012 amounted to over USD400 million in restructuring-related savings for the year. The progress includes:

• Labour costs reductions on 17% across all work groups including unionised workgroups, all of which ratified agreements for six-year terms;
• Organisational structure changes reducing management positions;
• Renegotiation of financing terms for over 400 mainline and regional aircraft including the completion of financial contracts for 216 Embraer aircraft. In addition, the changes will harmonise the retirement and aircraft delivery schedules;
• Renegotiation of over 95% of American's 725 facility leases and evaluation/renegotiation of over 9000 vendor/supplier agreements. [more - original PR]