American Airlines to close Dublin call centre
American Airlines parent AMR has announced a series of cost-cutting measures, including the closure of its Dublin reservations office, following news that its second quarter losses rocketed to $286m, compared to $11m during the same period last year.
The airline said it employed 130 staff at the reservations office in Dublin, where it is now entering into a consultation period with the workers' union. It has not set a date for the closure.
The airline is also evaluating its transatlantic flights, especially over the winter, and is likely to make some adjustment in conjunction with its joint business partners early next year, it said.
America has also announced it will suspend flights from New York to Tokyo from September to mid-June 2012.
The airline blamed its growing losses on a 31% increase in its fuel bill during the second quarter, which cost it $524m more than during the second quarter of 2010.
In order to reduce its fuel costs, the airline announced today that it is to revamp its shorthaul fleet by acquiring 460 new aircraft for delivery from 2013. These will be a mixture of Boeing 737s and Airbus A320s and together make up the largest aircraft order in aviation history.
American said the new deliveries would pave the way for the airline to have the youngest and most fuel-efficient fleet in the US in five years time.
The airline is also planning to divest itself of regional subsidiary American Eagle, either via the spin-off of Eagle stock to the shareholders of parent company AMR or through a sale.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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