Pilots create roadblock in American Airlines bankruptcy

Because it has been unable to finalize a deal with its pilots’ union, AMR Corp, the parent company of American Airlines, was allowed to force temporary work terms on union pilots by the US Bankruptcy Court.  However, this decision may create a bigger problem for the company in the future.

If AMR is unable to resolve issues with the union and broker an acceptable contract with its pilots, creditors and investors of the company may push harder for a sale of the company to competitor, US Airways Group. AMR desires to remain an independent company but without an agreement with its pilots, its chances of remaining independent may fly away.

More details see “AMR can abandon pilots’ union contract: judge

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