AMR flight attendants send deal to airline


Sep 4, 2002
AMR flight attendants send deal to airline

By Jon Herskovitz

DALLAS, March 28 (Reuters) - American Airlines, the world''s largest carrier which is struggling to avoid bankruptcy, has received a concession deal that will meet the airline''s goal of achieving $340 million in cuts from its flight attendants, the union representing that group said on Friday.

We''ve presented a proposal to the company that will reach the number it asked for, said John Ward, the president of the Association of Professional Flight Attendants.

Details of the plan were not announced. Ward added the union, which represents 26,000 flight attendants at American, a division of AMR Corp. , has yet to receive a response from the airline.

An American spokesman said the airline was looking over the deal''s numbers along with the APFA and American remains actively engaged in direct negotiations with the union in an effort to reach a consensual deal.

We appreciate the spirit of cooperation this action symbolizes, American spokesman Todd Burke said. We are now in the process of jointly costing out the proposal to determine whether it meets the cost targets established.

American has about 101,000 employees.


The deal would be the second pact announced in as many days between American and union groups. It comes as banking sources said the world''s largest carrier may file for bankruptcy as early as next week.

AMR has said it needs to cut structural costs by about $4 billion a year to avoid bankruptcy. It is in talks with all three of its major unions over a call it made for $1.8 billion in annual wage concessions from its employees.

American said on Thursday it reached a tentative agreement with its fleet service workers as it moves quickly to secure wage-concession deals over the next few days aimed at keeping it out of bankruptcy.

American said it reached the agreement with its 16,300 fleet service workers represented by the Transport Workers Union, but no terms of the deal were announced. The TWU represents about 34,500 mechanics and ground workers at American.

The fleet service workers are one of eight work groups represented by the TWU, which is one of the three major unions in talks with American on concessions. The three major unions are the TWU, APFA and the Allied Pilots Association.

The union that represents pilots at American said they plan to have a concession deal concluded by Monday. The remaining groups who have not announced a deal, or expected deal, are the other work groups represented by the TWU.

American said last week in response to the war in Iraq it would cut international flights by 6 percent in April, adding to a cut of 7 percent on U.S. domestic routes announced previously.

AMR shares were off 25 cents, or 14 percent, to $1.54 in afternoon trading on the New York Stock Exchange.

03/28/03 14:16 ET
Cant wait to see what our proposal is. The next question will AA agree to the value of the options APFA puts before them.

If they do want to avoid a trip to BK, the deal will likely go through. Ifs its the other way and the company doesn''t care one way or the other. They may disagree and not take the proposal.
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I believe that Carty has publicly stated that 3/30/03 is the filing date. But it is better to show the courts that you have bargained for concessions in good faith than to have them impose concessions on the employees. Either way the TWA employees are history.