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American To Layoff 11,000 Workers

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Here is another benefit of US airline deregulation and poor airline management. Like United, Us Airways, Northwest and Delta, American Airlines is making its employees pay the price for the poor decisions of its multimillion dollar a year CEO, CFO and hundreds of VP's of “This And That”.

Again, employees in the airline industry through oppressive working conditions will be asked to bear the brunt of the effort to “save the airline”. And no doubt their sacrifices will be rewarded by American CEO and others walking away with millions in bonus like what happened at the now deceased Northwest Airlines.

Some still blame airline woes on 9-11, the high cost of fuel and everything else except poor management. However, the railroad, trucking industry and many other companies are just as sensitive to the price of oil and the economic fallout from 9-11. Amazingly, many of these companies have still managed to turn a nice profit year after year. Ummm... pass your product cost onto the consumers.

This happens not just in the railroad or trucking industry. A 20oz bottle of Coke that cost $0.79 ten years ago now sells at Wal-Mart (The Low Price Leader) for $1.49. By comparison, airlines tickets today are still cheaper than they were twenty years ago. If I travel with a carry-on, I can fly round trip from Florida to New York for less than $300. This is insane when I pay $3.85 per gallon for gasoline.

I am not advocating that airlines make the cost of flying prohibitive for the general public (a good portion of whom seem to have no problem paying $4 at the airport for a 12oz cup of coffee) but the model for airline ticket pricing is broken and needs to be fixed. Had the industry addressed this situation a long time ago I imagine many of them like United, US Airways, Northwest, Delta and American would not have gone bankrupt.

Airline employees and their families would not once again be paying the price for poor management decisions.

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