As part of its restructuring process, American had already announced this week that it would be slashing 13,000 jobs in order to bring down annual operating costs by $2 billion. The company plans to hold negotiations for new union labor agreements so that it can come out of bankruptcy by the end of the year.

 

After the third-largest U.S. airline filed for bankruptcy protection on November 29, it became a takeover target with US Airways Group Inc. (NYSE: LCC) and Delta Airlines Inc. hiring advisers to look into the possibility of making a bid for a takeover. The basic components of the company’s restructuring program include increasing revenue by $1 billion over 5 years, slashing labor costs by a fifth across each work group and ending employee pension plans.