American Attendants Agree to Concessions
Wednesday April 16, 6:59 pm ET
By Angela K. Brown, Associated Press Writer
American Airlines Flight Attendants Agree to $340 Million in Labor Concessions
FORT WORTH, Texas (AP) -- American Airlines flight attendants approved $340 million in labor concessions Wednesday, pulling the world's largest carrier back from the brink of bankruptcy.
The Association of Professional Flight Attendants said 10,761 votes were cast for the concessions package and 9,652 against.
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The vote marked a reversal from one day earlier, when flight attendants narrowly rejected the package of layoffs, wage cuts and reduced benefits.
But the union and company extended the balloting, saying some workers had run encountered difficulty in voting and that it was a last shot at avoiding bankruptcy.
The world's biggest airline asked its three main unions to approve the bulk of $1.8 billion in annual labor cuts sought. Pilots and ground workers approved their share of the cuts by the Tuesday deadline.
American had vowed that the concessions were rejected, the nation's largest carrier would quickly file for bankruptcy protection.
The board of directors of American's parent, AMR Corp., had been prepared to meet by teleconference Wednesday night and approve a bankruptcy filing if flight attendants had rejected the labor cuts, a company spokesman said.
The spokesman, Bruce Hicks, said the company faced credit payments of at least $50 million Wednesday and would have filed for bankruptcy to avoid those payments and conserve cash.
American says it must cut annual costs by $4 billion -- including $1.8 billion in spending on its 99,000 employees -- to remain afloat and compete with low-cost carriers.
In voting that closed Tuesday, unionized pilots and ground workers approved their share of the concessions, saying they feared even deeper cuts if they forced the company into bankruptcy. The company said bankruptcy would force it to cut 10,000 more jobs.
But by the Tuesday deadline, the airline's 24,000 attendants rejected the deal, which would cut their pay by 15.6 percent on May 1, by fewer than 500 votes out of 19,000 cast.
In Wednesday trading on the New York Stock Exchange, AMR shares rose 83 cents to $4.23 in anticipation the flight attendants would reconsider. In after-hours trading, the shares surged another 13 percent.
Associated Press Writer Matt Curry in Fort Worth contributed to this report.
Wednesday April 16, 6:59 pm ET
By Angela K. Brown, Associated Press Writer
American Airlines Flight Attendants Agree to $340 Million in Labor Concessions
FORT WORTH, Texas (AP) -- American Airlines flight attendants approved $340 million in labor concessions Wednesday, pulling the world's largest carrier back from the brink of bankruptcy.
The Association of Professional Flight Attendants said 10,761 votes were cast for the concessions package and 9,652 against.
ADVERTISEMENT
The vote marked a reversal from one day earlier, when flight attendants narrowly rejected the package of layoffs, wage cuts and reduced benefits.
But the union and company extended the balloting, saying some workers had run encountered difficulty in voting and that it was a last shot at avoiding bankruptcy.
The world's biggest airline asked its three main unions to approve the bulk of $1.8 billion in annual labor cuts sought. Pilots and ground workers approved their share of the cuts by the Tuesday deadline.
American had vowed that the concessions were rejected, the nation's largest carrier would quickly file for bankruptcy protection.
The board of directors of American's parent, AMR Corp., had been prepared to meet by teleconference Wednesday night and approve a bankruptcy filing if flight attendants had rejected the labor cuts, a company spokesman said.
The spokesman, Bruce Hicks, said the company faced credit payments of at least $50 million Wednesday and would have filed for bankruptcy to avoid those payments and conserve cash.
American says it must cut annual costs by $4 billion -- including $1.8 billion in spending on its 99,000 employees -- to remain afloat and compete with low-cost carriers.
In voting that closed Tuesday, unionized pilots and ground workers approved their share of the concessions, saying they feared even deeper cuts if they forced the company into bankruptcy. The company said bankruptcy would force it to cut 10,000 more jobs.
But by the Tuesday deadline, the airline's 24,000 attendants rejected the deal, which would cut their pay by 15.6 percent on May 1, by fewer than 500 votes out of 19,000 cast.
In Wednesday trading on the New York Stock Exchange, AMR shares rose 83 cents to $4.23 in anticipation the flight attendants would reconsider. In after-hours trading, the shares surged another 13 percent.
Associated Press Writer Matt Curry in Fort Worth contributed to this report.
