The American Airlines pilot union leader who was one of the first and most visible proponents of a merger with US Airways Group Inc. resigned, a day after pilots rejected the AMR Corp. unit’s final cost-cutting contract offer.
American Airlines unions won’t face an immediate court ruling on whether their contracts can be discarded after pilot leaders decided to let members vote on a proposal that pared concessions sought by the bankrupt carrier.
American Airlines parent AMR Corp. filed for bankruptcy after failing to secure cost-cutting labor agreements and sitting out a round of mergers that dropped it from the world’s largest airline to No. 3 in the U.S.
AMR Corp.’s American Airlines said today it would switch from terminating pensions to freezing them for most employees, seeking to hasten agreements on $1.25 billion in concessions sought in bankruptcy.
Tension at U.S. airports between security and privacy may peak Nov. 24, one of the year’s busiest travel days, with a protest over growing use of full-body X-rays and of extensive pat-downs for those who reject the scans.
American Airlines’ push for $1.25 billion in labor savings is bogging down, possibly imperiling its turnaround bid, as the union strife that preceded parent AMR Corp.’s bankruptcy spills into a new round of talks.
AMR Corp.’s American Airlines and its pilot union are haggling about pay and flying rules as the two sides bump up against a company goal of getting a contract agreement this week to end talks that began in 2006.