AMR pilots willing 'to explore' salary cuts

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AMR pilots willing 'to explore' salary cuts
By Dan Reed, USA TODAY

American Airlines' pilots union appears to be warming to management's=20
request for $660 million a year in labor concessions.Officials at the=20
airline and the Allied Pilots Association (APA) disputed a warning issued=20
by a union board member that American will file a Chapter 11 bankruptcy=20
petition within three months if it doesn't get the concessions. Both sides=
=20
made clear that they agree with the outspoken board member's general=20
assessment that the airline's financial problems are serious and=20
urgent.Separately, Northwest Airlines formally asked its pilots for=20
concessions that union officials say would take pilots back to pre-1996 pay=
=20
rates, a cut of about 20%.At American, published reports about the comments=
=20
of Jeff Sheets =97 vice chairman of the American pilots union based at=20
Dallas/Fort Worth Airport =97 helped knock more than 9% off the stock price=
=20
of parent AMR. The shares lost 26 cents to close at $2.58, sinking below=20
the previous 52-week low of $2.70.

War jitters and concerns about high fuel prices also contributed to the=20
drop. But unlike American Airlines' stock, most other airline stocks closed=
=20
slightly higher.Sheets' prediction of a May or June bankruptcy filing "in=20
no way constitutes an official APA position," union President John Darrah=20
said in a statement issued late Wednesday.He added that Sheets' prediction=
=20
was not based on confidential financial information provided to union=20
leaders by management in connection with the request for concessions.AMR=20
wants a total of $1.8 billion a year in labor savings from all labor=20
groups.American spokesman Bruce Hicks dismissed Sheets' bankruptcy warning=
=20
as "a non-mathematician doing math" based on American's reported cash burn=
=20
rate and guessing at how much cash the airline management would want to=20
have at the time of a bankruptcy filing.

"It's just one guy's rather unsophisticated speculation."Still, Hicks says=
=20
it is important that union leaders "convey to their membership the=20
seriousness of the situation. It's important that the employees hear their=
=20
union leaders saying that what the company has been telling them all along=
=20
is the truth."Darrah reiterated the union's position that American "does=20
face an extremely difficult situation," and that a war with Iraq would=20
exacerbate its problems."We have signaled our willingness to explore cost=20
savings with American Airlines management," he said.




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