Question: In 2011, American Airlines had labor costs of $7,053,000,000 and ASM of 154,321,000,000. If they are successful in cutting $1.25 billion per year, what would their labor cost/ASM be and would that be competitive with USAir? If you are interested, you may wish to do more reading about American's plan to cut labor costs to learn more about how they propose to do that.