AMR, unions try to dodge Chapter 11 By Dan Reed, USA TODAY Some American Airlines' union officials are growing worried that the company will file for bankruptcy protection in a few weeks because worsening business conditions could overwhelm their efforts to keep the airline out of Chapter 11.Management of the world's largest airline is working feverishly with all three of its unions to reach deals cutting annual labor costs by $1.8 billion, or roughly 20%, by March 31, people close to the negotiations say.But there's growing concern among labor officials that concessions might not arrive in time to offset the pressures of rising fuel prices and a possible plunge in travel demand if there's a war.With American's parent, AMR, acknowledging that it's lining up potential bankruptcy financing, some union leaders have sought assurances from American that any concessions negotiated now would be honored if the company files for bankruptcy protection. "They've asked and we've told them that we can't give them absolute assurance of that because bankruptcy is too unpredictable an environment," says Jeff Brundage, American's vice president for labor relations.The company is "100% committed" to avoiding Chapter 11 and believes it can do so if it gets the labor cost cuts it seeks, Brundage says.The pacts would likely include a combination of pay and benefits cuts and work-rule changes leading to the elimination of thousands more jobs. AMR has eliminated about 14,700 jobs since the Sept. 11 terrorist attacks. A 20% reduction in labor costs implies an additional 19,000 of AMR's 95,000 employees could be furloughed.American's talks with all three of its unions are moving rapidly. On Tuesday, the Association of Professional Flight Attendants announced they would begin formal negotiations immediately. Top American officials met Tuesday with the Transport Workers Union, representing mechanics, baggage handlers and other ground workers.American spokesman Bruce Hicks says the company can't promise it won't need additional labor cuts if it goes into Chapter 11. "The best thing to come out of these last few months is much improved labor relations, and we would seek to honor that in any case," he says.A quick bankruptcy filing, union sources and industry consultants say, could give AMR an advantage over its rivals in the event that most or even all airlines are forced by the deteriorating market conditions to file bankruptcy petitions.One former industry executive with bankruptcy experience says it's important for still-solvent airlines to recognize that it could be dangerous to be the last competitor into bankruptcy court. There's a limited amount of financing available to help airlines operate in Chapter 11, and the last airline that files might find nothing left. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.tha.gov.tt/ TnT Webdirectory: http://search.co.tt *********************************************************