Coverage of the merger between American Airlines and US Airways

APA Votes Down American Airlines' Last Contract Offer

Fate of contract left up to bankruptcy judge

By Frank Heinz
|  Wednesday, Aug 8, 2012  |  Updated 6:39 PM CDT
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Members of the Allied Pilots Union have voted overwhelmingly against the latest, and reportedly last, contract offer from American Airlines.

Ray Villeda, NBC 5 News

Members of the Allied Pilots Union have voted overwhelmingly against the latest, and reportedly last, contract offer from American Airlines.

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Members of the Allied Pilots Union have voted overwhelmingly against the latest, and reportedly last, contract offer from American Airlines.

The vote was 61 percent against and only 39 percent in favor of the contract that would have given pilots a 13 percent stake in the company and pay raises when the company emerges from bankruptcy.

The pilots had three main sticking points with the offer: the contract's 6-year length, the pay rate and the general anger toward company management.

A "yes" vote to some pilots, signified endorsing current management, management they feel needs to be changed.

“We are disappointed with the outcome of today’s APA voting results, as ratification of the pilot tentative agreement would have been an important step forward in our restructuring. However, we respect the rights of our pilots to voice their opinions in the voting process. We now must await a ruling by Judge Lane that will allow the company to implement the changes necessary to move forward with our restructuring,” said Bruce Hicks, American Airlines spokesman.

Now, the fate of the contract will be left to a bankruptcy judge who will likely reject the existing contract and put a concessionary agreement in place, the Star-Telegram reports.

The Association of Professional Flight Attendants put out a message this week calling for pilots, whose vote they say carries the most clout, to vote "yes."

Also Wednesday, results on new labor contracts for the Mechanic & Related and Stores workers were released.  Both groups ratified new labor agreements with the airline. All seven TWU work groups now have ratified labor agreements with the airline.

NBC 5's Ray Villeda contributed to this report.


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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