Arizona call center on chopping block amid American Airlines bankruptcy plan

An Arizona call center is on the chopping block if a bankruptcy judge approves the restructuring plan of American Airlines.

 Bloomberg News reported that 680 employees at the closed reservation center will be offered jobs at different locations or home-based positions. An additional 800 people will be shifted to homes and some part-time positions will be eliminated.

When a company files for a structured debt relief plan, their bankruptcy attorneys may recommend job cuts as a way to eliminate some of their costs.

American Airlines filed for Chapter 11 bankruptcy last November and have been locked in heated negotiations with labor unions. The airline initially announced they would be cutting 14,000 jobs, but has since reduced the cuts to 13,000 union pilots, flight attendants and ground workers.

American Airlines is negotiating with U.S. Airways for a possible merger. This proposal has the approval of labor unions and could preserve jobs in Arizona and other states.

The company’s goal is to cut annual labor cost by $1.25 billion. An experienced Arizona bankruptcy lawyer will evaluate a troubled businesses’ expenses and determine which measures will reduce their debt and allow them to become financially solvent.

Although bankruptcy may not be the ideal course of action an individual or business wants to take, but it sometimes their best option to stop the collection activities of creditors and reduce their debt. An Arizona bankruptcy attorney will determine whether a Chapter 7 or Chapter 13 filing will work best for their client’s needs.