Why the changes to retiree medical coverage?
Health care costs are the fastest growing cost component for employers. Currently, American has significantly greater expenses for retiree health care than other major airlines. American is aggressively looking at the costs associated with all areas of the business and making changes to help better cope with the economic struggles of the industry, while at the same time better prepare the company to compete for the long term. One component of being competitive is better aligning the company’s health care costs with the industry and other large corporations.
