How the American Airlines Bankruptcy Affects Tulsa's Aerospace Industry

Background

Kevork Djansezian / Getty Images

In February 2012, the parent company for American Airlines announced plans to layoff 2,100 workers in Tulsa.

After months of back-and-forth with unions in U.S. bankruptcy court, that number was whittled down. In September 2012, the company’s final plan included for 839 job cuts in Tulsa — mostly mechanics and maintenance workers. The layoffs will start in December 2012 and continue in February 2013. Workers are being offered early retirement.

The layoffs are part of AMR Corp.’s bankruptcy restructuring plan. The company filed for Chapter 11 protection in November 2011.

The bankrupt carrier is closing its Alliance Airport base in Fort Worth and is consolidating operations to the Tulsa base and one at the Dallas-Fort Worth International Airport.

Business leaders and city officials are worried about the layoff’s affect on Tulsa’s aerospace industry, which is estimated to employ 20,000 people in the area.

Latest Posts

Follow this topic

July 30, 2012

The ‘Ghost’ Ad That Made American Airlines’ Tulsa Union Mad

Click here to see a larger version of the unsigned half-page ad that ran in the July 27 Tulsa World.

A half-page advertisement published in Friday’s Tulsa World has angered American Airlines’ union members in Tulsa. Bold print on the unsigned ad reads, “Vote No Save Our Profession,” and is addressed to maintenance technicians with the Transport Workers Union, which represents more than 5,000 workers at the bankrupt airline’s Tulsa maintenance base. It’s not clear [...]

July 27, 2012

‘Double Trouble’ for Tulsa’s TWU: Contract Ratification, Rival Unions

These are trying times for Transport Workers Union Local 514. The union, which represents about 5,600 workers at American Airlines’ Tulsa maintenance base, is encouraging members to ratify the bankrupt airline’s latest contract offer. It’s also trying to ward off membership drives from two rival unions — the International Brotherhood of Teamsters and the Aircraft [...]

July 11, 2012

Mechanics Have a ‘Concessionary,’ Tentative Contract With American Airlines

Mechanics and stock clerks and American Airlines tentatively agreed to a six-year contract Tuesday that affords 15 percent wage increases and improved health insurance and other benefits. The agreement with the bankrupt airline must be ratified by 11,000 mechanics and stock clerks in the next month, and includes a 3 percent signing bonus for mechanics, [...]

June 21, 2012

Ruling on American Airlines’ Union Contracts Expected Tomorrow

The pilots’ union on Wednesday rejected American Airlines’ latest contract offer, and a bankruptcy judge is expected to decide Friday whether the airline can void its labor contracts and impose its own terms. AMR Corp., the airline’s parent company, filed for bankruptcy in November, and wants to save $1.25 billion in labor cost-cutting — which [...]

June 6, 2012

Job Cuts Expected at American Airlines’ Tulsa Maintenance Base, Possibly Today

A new round of American Airlines management layoffs is in the works, and job cuts are expected at the bankrupt airline’s maintenance base in Tulsa. The layoffs could start today, sources tell the Tulsa World’s D.R. Stewart.

May 16, 2012

Why Mechanics Rejected AA’s Contract Offer, And What it Means for Tulsa

American Airlines and American Eagle employees rally in front of the U.S. Bankruptcy Court.

Five of seven bargaining units within the Transport Workers Union voted to accept American Airlines’ final labor contract. Rejection came from two groups: store clerks and mechanics, the union’s largest group at the Tulsa maintenance base. The fate of 2,100 Tulsa-area workers is now in the hands of a bankruptcy court. So what motivated mechanics [...]

May 4, 2012

Visualized: American Airlines’ Impact on Northeastern Oklahoma

American Airlines D-6 at the Tulsa Municipal Airport flight line in 1945.

American Airlines in February detailed a bankruptcy-restructuring plan that eliminated 2,100 jobs from its Tulsa maintenance base. Workers are worried about their jobs, and business leaders are concerned layoffs could mean losing about 10 percent of the area’s aerospace workforce. And while the bulk of the base’s employees live in big-city Tulsa, the bankruptcy could [...]

May 2, 2012

AA’s ‘Final’ Union Contract Comes With Fewer Tulsa Job Cuts and Conditions

American Airlines and American Eagle employees rally in front of the U.S. Bankruptcy Court to protest against American's plans to cut jobs and labor costs while under bankruptcy court protection.

American Airlines’ “final best” contract offer to the Transport Workers Union includes fewer layoffs than the company previously said were necessary. About 2,100 workers in Tulsa were targeted for layoffs in parent company AMR Corp.’s bankruptcy restructuring plan. The contract offer reduces that number “significantly,” a union rep tells the Tulsa World‘s D.R. Stewart. There [...]

April 30, 2012

Union: AA Merger with US Airways Means Fewer Job Cuts in Tulsa

American Airlines and American Eagle employees prepare to march to U.S. Bankruptcy Court to protest against American's plans to cut jobs and labor costs while under bankruptcy court protection. The airline's three major unions, while opposing the company's restructuring plans, announced Friday that they would support a potential takeover bid by US Airways.

US Airways has been wooing labor unions to support a possible bid for bankrupt American Airlines. Last week, the Transport Workers Union — which represents about 2,100 workers targeted for layoffs at American’s maintenance base in Tulsa — joined pilots and flight attendants unions in supporting a US Airways takeover. Under a US Airways agreement [...]

April 24, 2012

AA in Bankruptcy Court: Airline Wants to Cut Contracts, Unions Want a Merger

American Airlines and its labor unions squared off Monday in federal bankruptcy court. The airline’s lawyers argued cutting labor costs was necessary to remain competitive, while union lawyers suggested a merger with US Airways. American is asking its three unions to give up about $990 million a year in wages and benefits, the Tulsa World [...]