American Airlines, pilots close to deal on new contract

American Airlines

Credit: WFAA

American Airlines, pilots close to deal on new contract

Print
Email
|

by JASON WHITELY

Bio | Email | Follow: @jasonwhitely

WFAA

Posted on October 26, 2012 at 11:37 PM

DALLAS - Sources from the Allied Pilots Association and American Airlines said they are close to reaching agreement for a new labor contract and could have a deal by next week.

Pilots are the airline's only labor group to reject American's final offer. Doing so allowed American to eventually cancel its pilots contract and impose certain working terms, with a judge's permission.

But now both sides tell News 8 they're making significant progress, and could have an announcement late next week. A contract proposal would first have to be approved by the Board of Directors for the Allied Pilots Association before being passed on to all 10,000 pilots for ratification.

On Friday evening, American announced that it would start contributing up to 11 percent of a pilot’s salary to a new retirement plan, which is similar to a 401(k). Both sides said that move by American is a good-faith effort to try to reach an agreement.

The airline also said it will delay implementing several elements of its term sheet, since a deal appears to be developing.

Despite being close to a contract, the Allied Pilots Association said it still plans to go ahead with a picket at D/FW Airport next Wednesday morning.

E-mail jwhitely@wfaa.com

Print
Email
|