The lawyer for AMR Corp.’s unsecured creditors committee warned American Airlines pilots of the risks of rejecting a tentative contract that would allow the carrier’s post-bankruptcy plan to be weighed against a US Airways Group Inc. merger, three people familiar with the matter said.
AMR Corp.’s American Airlines won court approval to throw out its labor agreement with pilots, capping the airline’s campaign to force cost cuts on the lone union it couldn’t reach a deal with on concessions.
On the evening of Dec. 10, 2007, pilot Kenny Edwards got the order to fly a Continental Airlines Inc. commuter flight from Tampa, Florida, to West Palm Beach. He told his dispatch supervisor he wouldn’t do it.
American Airlines cut U.S. capacity by as much as 2 percent for the rest of this month and October as pilot retirements, sick calls and mechanical issues left the carrier with more cancellations than any of its U.S. competitors.