American Airlines Seeks 13,000 Job Cuts American Airlines said Wednesday that it wanted to cut 13,000 jobs and terminate its workers" pension plans as it seeks to cut its employee costs by 20 percent while operating in bankruptcy court. The company said its proposal would reduce overall costs by $2 billion a year, including $1.25 billion from employees. The airline is now likely to kick off weeks of contentious negotiations with the unions before the company can present a restructuring plan to the bankruptcy court, where American's fate will be ultimately sealed. A bankruptcy judge must approve any new contract if the unions reject American's proposals. The job cuts would amount to 16 percent of American's work force of about 80,000. The company said it wanted to cut 4,600 mechanics jobs, 4,200 ground service positions, 2,300 flight attendants and 400 pilots. Another 1,400 jobs would be cut in management and support services. More cuts are being considered for gate agents, representatives and planners, though no numbers were given. Over the last decade, the other top airlines have used bankruptcy proceedings to renegotiate labor contracts, freeze or terminate pensions, and slash debt they could no longer afford. In a letter to employees, the company's chairman, Thomas W. Horton, said that the carrier had lost its competitive edge over the years. Labor costs at American are currently the highest among the legacy carriers, and account for about 30 percent of its overall costs. That compares with 21 percent for Delta Air Lines and United Continental Holdings, said Vicki Bryan, an analyst at Gimme Credit. American contends that it now faces a cost disadvantage of roughly $800 million a year. But costs are not the only problem American faces, Ms. Bryan said. The airline, once the top domestic and international carrier in the nation, missed out on the megamergers that have reshaped the industry in recent years. It is now competing against much bigger rivals in United, which bought Continental Airlines, and Delta, which bought Northwest. It has also been losing ground at some of its hubs, particularly New York and Chicago. "This is blood on the street for employees," Ms. Bryan said. It is very painful. But the main part of their problem is the top-line growth, and I don't see how they fix that. They are still playing football with a little helmet against Delta and United. While most airlines have been profitable for the past two years, American has lost about $12 billion in the past decade. In December alone, its losses amounted to $904 million, the company said Tuesday. Revenues are slipping as well. To keep passengers from deserting, American has been forced to cut fares and offer more discounts than its rivals, analysts said. Hunter Keay, an aviation analyst at Wolfe Trahan & Company, said that one of American's biggest problems was the lack of a viable network to attract business travelers. "Their reach across the Atlantic is less deep, and their Asian market lags far behind Delta and United," he said. The latest proposal was rejected by American's pilots two weeks before the company filed for bankruptcy in November. William S. Swelbar, a research engineer at the Massachusetts Institute of Technology's International Center for Air Transportation, said that while the company's proposals were significant, they were consistent with what other airlines have done in previous bankruptcies. "This is going to be a tough sell, but they are negotiating with a hammer," he said. An earlier version of this article incorrectly said that American Airlines was seeking a 20 percent cut in salaries and benefits. It is seeking a 20 percent cut in total employee costs.