American Airlines, Unions Cut Deal to Avoid Bankruptcy
Ft. Worth, Texas – American Airlines and its three unions have reached tentative agreements that will keep the carrier out of bankruptcy.
A source says pilots, mechanics and flight attendants have signed tentative agreements apparently giving the company $1.8 billion in annual labor savings.
The company had set a deadline of midday today, saying it would have to seek Chapter Eleven bankruptcy protection if it couldn't reach deals.
Negotiators for American and unions representing pilots, flight attendants and mechanics are still meeting this afternoon at the airline's training center.
Any agreements reached between union and company negotiators would still need to be voted upon by the employees.
American says in a news release it reached a tentative agreement with its mechanics. A representative for the flight attendants said the union has concluded negotiations with the airline. The pilots union had not confirmed that a deal was struck.