Coverage of the merger between American Airlines and US Airways

American Airlines Flight Attendants Approve Contract

By Frank Heinz
|  Monday, Aug 20, 2012  |  Updated 12:32 AM CDT
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Flight attendants at American Airlines are approving a contract offer from the airline, avoiding deep cuts in bankruptcy court.

Omar Villafranca, NBC 5 News

Flight attendants at American Airlines are approving a contract offer from the airline, avoiding deep cuts in bankruptcy court.

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Flight attendants at American Airlines are approving a contract offer from the airline, avoiding deep cuts in bankruptcy court.

By voting Sunday to approve the new contract, which includes numerous concessions, the flight attendants stave off the chance that American would impose even deeper cuts in bankruptcy court.

“Ratification of the flight attendant agreement is an important step forward in our restructuring.  We know this was not an easy decision for our flight attendants and we are very pleased with the choice they made," said Bruce Hicks, American Airlines spokesman. “With ratification, our flight attendants will see many benefits that would not have been available  without a consensual agreement, including an Early Out incentive which could potentially eliminate the need for more than 2,000 furloughs, a lump sum payment on date of signing, pay increases over the next five years, an equity stake in the new American and more."

AMR, the parent company of American Airlines, has said the new contract will reduce annual spending by $195 million.

American's pilots recently rejected the company's last contract offer to them. AMR has asked the bankruptcy judge to throw out the pilots' current contract and impose deeper spending cuts.

The flight attendants now join the seven TWU-represented employee groups with ratified agreements.  Hicks said in addition to those agreements, this past week the airline also concluded management/support staff redesign and are moving forward with changes for independent employees.

The ariline also filed a renewed Section 1113 motion to reject the pilot contract.


American Airlines Merger:
Complete coverage of the merger between American Airlines and US Airways into the newly-formed Fort Worth-based company, American Airlines Group (AAL). Click here for more.

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