Following recent moves to cut flight capacity and the size of its workforce in reaction to a large drop in business and high increase in fuel prices, American Airlines is moving to lay off 1,500 positions in its Maintenance and Engineering division.

With plans to retire its fleet of A300 aircraft, American has less use for some 1,300 maintenance workers and 200 management and staff positions.

As the airline industry is on pace for a collective $12 billion-dollar loss in 2008, moves like this have become common. A decline in travel and subsequent drop in flight capacity have made air carriers move to cut back on labor costs.

American is hoping natural attrition and early retirement will help some maintenance workers voluntarily remove themselves from the 1,500 needed to be let go.

No date for the layoffs has been given by American, but the company had warned employees that a move like this was coming.

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