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This is an archive article published on November 19, 2004

World’s largest airline gears up to pull down costs by tossing pillows

Cash-strapped American Airlines has said it is trying to take some of the fluff out of its costs: So the world’s largest carrier is eli...

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Cash-strapped American Airlines has said it is trying to take some of the fluff out of its costs: So the world’s largest carrier is eliminating pillows on its planes.

The multi-billion-dollar airline, the world’s largest carrier, figures it will save about $300,000 a year by doing away with the pillows on about half of its fleet — 334 MD-80s, American officials said. But what the airline may gain in savings it may lose in its appeal to customers, analysts said.

According to American, pillow-less airplanes translate into savings because workers will be able to clean the planes faster between flights. That will reduce the time aircraft sit at airport gates. Productivity is thus increased, American said.

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Ned Raynolds, an American spokesman in Manhattan, conceded that $300,000 in savings does not seem like much for a company with revenues in the billions of dollars a year.

‘‘But we are looking for any opportunity to cut costs,’’ he said.

Raynolds said a group of employees came up with the idea during a meeting with the American management.

American, like other so-called ‘‘legacy’’ carriers, has been struggling against mounting fuel costs and competition from low-cost carriers. Since 2002, the Fort Worth, Texas-based airline has cut about $4 billion a year in expenses.

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But what will passengers think when they want to put their heads back and find — no pillow?

‘‘We think in many cases the customers won’t miss it,’’ Raynolds said. But Vaughn Cordle, chief analyst for Airline Forecasts LLC, consultants in Washington D.C., said American shouldn’t be so sure about that.

‘‘Passengers will notice over time,’’ Cordle said. ‘‘The quality of the service deteriorates because of the financial distress.’’
—LATW-WP

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