IAG 'not ruling out' taking stake in beleaguered American Airlines

INTERNATIONAL Airlines Group (IAG) has indicated that it would be interested in buying a stake in financially-troubled American Airlines (AA) which has filed for chapter 11 bankruptcy protection in November.

An unnamed IAG spokeswoman said rumours about the carrier taking a minor stake in American Airlines aren't off base.

"We have a strong partnership with AA and wouldn't rule out investing in a restructured AA if they would welcome that," she said. This news comes on the heels of AA's decision to cut 40 cargo jobs at Dallas-Fort Worth (DFW) International Airport, according to Atlanta area Air Cargo World.

In its bankruptcy protection petition, AA detailed plans to lay off 36 cargo agents and four cargo coordinators at DFW in a letter to Texas labour officials. The action is in line with AA parent company AMR Corp's announcement in February to cut 13,000 jobs from its workforce as part of restructuring. But AA downgraded this figure slightly after talks with unions.

Michael Waldron, American Airlines' managing director of diversity and talent development, revealed in a letter to the Texas Workforce Commission that the 40 cargo workers will likely lose their jobs in late September.

"Each workgroup was obligated to reduce costs necessary for the successful reorganisation," Mr Waldron said. "Regrettably, reducing costs requires a reduction in work force."

Mr Waldron also said that American Airlines is offering "voluntary separation options" in an attempt to mitigate the number of workers that will be laid off.

Overall, American Airlines incurred a net loss of US$241 million during the second quarter of 2012, a by-product of the bankruptcy restructuring costs. The carrier's cargo segment has particularly struggled in recent months, with tonnage falling 4.9 per cent year on year in July; passenger traffic was also down in July.