Wednesday, April 16, 2008

Cuts follow American Airlines loss

Go to Financial Times original
American Airlines has announced a series of moves, including additional cuts to its 2008 flight schedule and a hiring freeze, to help the US carrier endure record fuel costs and waning demand for air travel.

American has also agreed to sell 90 per cent of its asset management unit, American Beacon Advisors, to private equity firms Pharos Capital Group and TPG Capital for about $480m in cash.

The manoeuvres came as AMR, American’s parent, reported its second straight quarterly loss.

The fuel run-up and dimming economic outlook has pushed some smaller carriers into bankruptcy and forced even big airlines to weigh strategic changes.


No comments: