American Air Pilots Protest Against 'Failing' Carrier
CHICAGO - Pilots at American Airlines on Tuesday blamed a series of operational problems on management failings as they staged a nationwide " intervention" to advance their case.
The protests in 10 cities by pilots at the largest U.S. carrier come as American tries to recover from problems with maintenance records that grounded hundreds of flights last week operated with its aging MD-80 fleet.
"The recent [MD-80] meltdown combined with our reliability performance tells us that we are an airline in trouble," said Dave Powell, a Chicago-based MD-80 pilot for American protesting in the city outside the headquarters of Boeing Co. (BA).
"The operation, by every available metric, is failing," said Powell, who said the concerns predated the MD-80 episode.
Powell said pilots had raised a catalogue of issues with management, including a shortage of spare parts after inventories were cut to pare expenses. "The problem is that narrows our safety margin, though we haven't crossed any lines."
American was unavailable for comment.
Pilots said the protests were unconnected to demands for a new contract, but labor relations at the carrier remain strained by a management compensation scheme that started paying out in 2006. Employees maintain that they should be rewarded for wage and benefit cuts that kept the carrier out of bankruptcy.
"This is not about contract demands. We are demonstrating for management to take our concerns seriously," said Powell.
American's flight crew, represented by the Allied Pilots Association, has sought federal mediation in their pursuit of a new contract.
Powell said he hoped the protests would put pressure on American's executives, but said pilots were not seeking the ouster of American's existing management team led by Chairman and Chief Executive Gerard Arpey.
The furor over the bonus plan attracted joint protests from American's pilots, flight attendants and mechanics, though cabin crew and engineers were not involved in Tuesday's protests.
More than 800 American executives are due to receive bonuses this week, and the mechanics and cabin crew have asked them to turn down the bonuses or resign.
American's management is expected to be questioned about its labor relations when it reports first-quarter earnings on Wednesday. Analysts expect the carrier to lose around $300 million - its worst performance in the quarter in five years - as it wrestles with rising fuel costs.
Executives also face speculation that it could be making early-stage preparations for a future Chapter 11 bankruptcy filing in a bid to lower costs, which remain among the highest in the industry.
American is the only major U.S. carrier to avoid bankruptcy during the latest downturn, averting the move in 2003 with support from labor concessions. Executives have not commented on the prospect of a filing, and analysts believe the airline has ample cash to weather the current downturn.
"I suspect they will use everything available to them if that's the avenue they want to go down," said Powell, when asked if pilot protests could provide leverage for a Chapter 11 filing.
CHICAGO - Pilots at American Airlines on Tuesday blamed a series of operational problems on management failings as they staged a nationwide " intervention" to advance their case.
The protests in 10 cities by pilots at the largest U.S. carrier come as American tries to recover from problems with maintenance records that grounded hundreds of flights last week operated with its aging MD-80 fleet.
"The recent [MD-80] meltdown combined with our reliability performance tells us that we are an airline in trouble," said Dave Powell, a Chicago-based MD-80 pilot for American protesting in the city outside the headquarters of Boeing Co. (BA).
"The operation, by every available metric, is failing," said Powell, who said the concerns predated the MD-80 episode.
Powell said pilots had raised a catalogue of issues with management, including a shortage of spare parts after inventories were cut to pare expenses. "The problem is that narrows our safety margin, though we haven't crossed any lines."
American was unavailable for comment.
Pilots said the protests were unconnected to demands for a new contract, but labor relations at the carrier remain strained by a management compensation scheme that started paying out in 2006. Employees maintain that they should be rewarded for wage and benefit cuts that kept the carrier out of bankruptcy.
"This is not about contract demands. We are demonstrating for management to take our concerns seriously," said Powell.
American's flight crew, represented by the Allied Pilots Association, has sought federal mediation in their pursuit of a new contract.
Powell said he hoped the protests would put pressure on American's executives, but said pilots were not seeking the ouster of American's existing management team led by Chairman and Chief Executive Gerard Arpey.
The furor over the bonus plan attracted joint protests from American's pilots, flight attendants and mechanics, though cabin crew and engineers were not involved in Tuesday's protests.
More than 800 American executives are due to receive bonuses this week, and the mechanics and cabin crew have asked them to turn down the bonuses or resign.
American's management is expected to be questioned about its labor relations when it reports first-quarter earnings on Wednesday. Analysts expect the carrier to lose around $300 million - its worst performance in the quarter in five years - as it wrestles with rising fuel costs.
Executives also face speculation that it could be making early-stage preparations for a future Chapter 11 bankruptcy filing in a bid to lower costs, which remain among the highest in the industry.
American is the only major U.S. carrier to avoid bankruptcy during the latest downturn, averting the move in 2003 with support from labor concessions. Executives have not commented on the prospect of a filing, and analysts believe the airline has ample cash to weather the current downturn.
"I suspect they will use everything available to them if that's the avenue they want to go down," said Powell, when asked if pilot protests could provide leverage for a Chapter 11 filing.