The American Airlines bankruptcy case has been a point of controversy since their filing late last year. Company executives have faced some tough criticism over their risky moves in the last few months. Despite constant negotiations the company has yet to find a solution to their financial troubles that doesn’t include huge cuts to jobs and employee benefits.
All In Favor?
The idea of a takeover by US Airways has surfaced in recent weeks. As one of the only airlines who could financially afford to buyout American, US Airways has been in talks with American’s creditors over a potential deal. While American continues to insist they can emerge successfully from the bankruptcy case, their main strategy continues to focus on more job cuts and the elimination of employee benefits.
The bankruptcy court has yet to approve any of the proposed 14,000 job cuts or pension eliminations planned by American executives, and employee unions are getting restless. Union representatives have spoken out about their resistance to the proposed company cuts, but are expected to publicly support the idea of a takeover by US Airways later today. Many of the union members have said they feel that a takeover is their only chance for saving jobs and preventing the loss of benefits to employees who have worked so hard for the company over the years.