Flight Attendants Approve American Airlines Contract

by Christopher Freeburn | August 20, 2012 11:09 am

American Airlines (PINK:AAMRQ) has won approval of a new contract with its flight attendants[1].

The flight attendants became the latest union to vote in favor of a deal with the bankrupt airline company. Union officials said the deal was made to avoid the contract dispute becoming part of the company’s bankruptcy proceedings, where it might have ended up resolved by the court, Bloomberg noted.

Earlier this month, the union for stock clerks and mechanics accepted a new contract. With the flight attendants union now on board, only American’s pilots remain without a new agreement.

Analysts say the pilots union is expected to make an agreement with the airline now that the other unions have negotiated their own deals.

Last  week, American Airlines requested that the bankruptcy judge terminate its current contract with the pilots after the union dismissed its latest offer, which included a 13.5% stake in the company.

The company cannot complete the bankruptcy process until it lands a deal with the pilots union, analysts noted.

Unions representing American’s baggage handlers, mechanics and pilots have made deals with U.S. Airways Group (NYSE:LCC[2]), effective if U.S. Airways ultimately buys American Airlines.

Endnotes:
  1. approval of a new contract with its flight attendants: http://www.bloomberg.com/news/2012-08-19/m90fqi1a1i4h.html
  2. LCC: http://studio-5.financialcontent.com/investplace/quote?Symbol=LCC

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