American Eagle Airlines has outlined plans to reduce the headcount of its management team by 10% during the next few months as part of the on-going AMR Corporation chapter 11 bankruptcy reorganisation.
The reductions are part of the airline's target to cut labour costs by $75 million annually. The management and support staff reductions are expected to generate $7 million in annual savings, according to a memo to employees from the airline's president and chief executive Dan Garton on 18 May.
American Eagle has been in negotiations with its pilot, flight attendant and ground workers unions over new contracts since 21 March.
The regional airline will cut 15% of officer positions, adjust the responsibilities of its regional managers and hub management personnel, and announce cuts to its finance, human resources, information technology and operations teams as part of the reductions.
American Eagle will not fill the positions of retiring Ed Criner, vice president of safety, and departing Dave Brown, vice president of airport services, when they leave the company.
Executive Airlines management positions will be reduced in line with reduction in the airline's operations, said Garton in the letter. Executive operates 17 ATR 72 aircraft that will be retired as part of AMR's bankruptcy reorganisation.