New York, February 2 (FinanceEnquiry.com) - As the third-biggest US airline company braces itself to deal with bankruptcy protection, AMR Corp is planning to slash 13,000 jobs, representing about 15 percent of its work force. The company is also planning to start negotiations with its three major unions in order to cut jobs and also lower labor costs by 20 percent under bankruptcy protection. The company said that some management jobs might also be affected.

The parent of American Airlines is also planning to stop its traditional pension plans. However, the airline’s unions and the US pension-insurance agency are vehemently opposing such a move. The CEO of AMR said Wednesday that the objective of the company is to cut spending by more than $2 billion per year and raise revenue by $1 billion per year in order to return to profitability.

In the first nine months of 2011, AMR lost $884 million, which was topped by a further loss of $904 million in December alone. Since 2001, the company has lost a total of more than $11 billion. Ever since AMR, American and short-haul affiliate American Eagle have also filed for bankruptcy protection in November. The company feels that it will emerge from bankruptcy with fewer workers.