Capacity cuts are permanent, says American Airlines exec

09/10/2008 | International Herald Tribune

A top official at American Airlines says capacity cuts are permanent, despite a recent drop in fuel prices. CFO Tom Horton told the Associated Press that American has grounded older planes that consume about 35% more fuel per seat than newer models. "It would be very difficult to bring them back, not just in operations cost but also in maintenance infrastructure," he explained. Horton also predicted the "entire global airline industry has more consolidation in its future."

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