The turbulence surrounding American Airlines isn’t just in the air as reports continue to stir about cancellations, delay and stingy contract negotiations. Since their Chapter 11 bankruptcy filing nearly a year ago, American Airlines has had work hard to uphold its wavering reputation. After all of the ill press in recent weeks, some good news surfaces about the fate of the airline.
The pilots union for American Airlines employees has not been pleased with talks of cancelling labor contracts and cutting future pensions. However, American parent company, AMR, has held firm and continued to push for more negotiations. This week, pilots for AMR’s sister airline, American Eagle, have agreed to a new labor contract. The proposal won when 75% of the Eagle pilots voted in favor of the new terms, which likely includes a reduction in medical and pension benefits.
Tony Gutierrez, chairman of the governing council at Eagle’s branch of the nationwide union, said “Although none of us wanted to navigate the bankruptcy process during our career, we are pleased that this difficult chapter is now behind us.” Now that Eagle pilots have approved a new labor deal, pressure is on for American pilots to resume negotiations with AMR. American sees this as a sign of hope that an agreement will eventually be reached.