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What American Airlines Job Cuts Mean for Consumers:A CBS This Morning Report

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Yesterday American Airlines announced that it is cutting 13,000 jobs, reducing up to 15 percent of isworkforce and 20 percent of labor costs. Looking to shave $1 billion from its budget, the restructuring plan aims to cut 4,600 maintenance workers, 4,200 baggage handlers, 2,300 flight attendants, 1,400 management employees and 400 pilots, according to airline spokesman Bruce Hicks.

Prior to the announcement the airline met with its its three largest labor unions: Allied Pilots Association, the Association of Professional Flight Attendants and the Transport Workers Union. The airline is looking for union approval to replace the traditional pension plans, which cover 130,000 employees and retirees, with 401(k)-type plans.

These cuts come at a time where consumer confidence in American Airlines is at a record low. According to a recent survey from Airfarewatchdog, 48 percent of travelers do not feel comfortable booking with the airline.

While the recent round of layoffs will do little to rebuild confidence, Peter breaks down how these cuts will impact consumers and if there’s a real cause for concern in his CBS This Morning report.

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