Pilots say American Air seeks 1,000 furloughs

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Pilots say American Air seeks 1,000 furloughs  =

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Wednesday March 26, 4:40 PM EST =


(Adds details, stock price paragraphs 12-13)

DALLAS, March 26 (Reuters) - The union representing pilots at American Ai=
rlines on Wednesday said the struggling carrier is asking to furlough an =
additional 1,000 pilots as part of a wage-concession deal.

The union said there are already 1,078 American pilots on furlough and th=
e call for additional furloughs is a move by management at American, a di=
vision of AMR Corp. (AMR), to bring a new wrinkle into talks as an agreem=
ent nears on concessions.

"Management has indicated it wants to furlough nearly 1,000 additional pi=
lots without assigning any dollar value to those furloughs," the Allied P=
ilots Association said in a statement. "It appears to us to be bad-faith =
negotiations."

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American said the furloughs referred to by the union were already account=
ed for before the airline ever went to the APA for contract changes and w=
ere over and above what the airline needed to operate as of the start of =
the year.

On Tuesday, the APA, which represents some 13,500 pilots at American, sai=
d its board will likely vote by the end of this month on a wage-concessio=
n deal the union is hammering out with management at the struggling carri=
er. The final say on any deal would come from the union's rank and file.

AMR has said it needs to cut structural costs by about $4 billion a year =
to avoid bankruptcy.

It is in talks with all three of its major unions over a call it made las=
t month for $1.8 billion in annual wage concessions. It has asked the APA=
 to agree to some $660 million in cost savings.

"Their (management's) goal now is $660 million plus several hundred addit=
ional pilot furloughs," the union said. "We are perplexed by this last-mi=
nute change in attitude, and so are the mediators involved in our negotia=
tions."

The union said that if American can steer clear of bankruptcy, it is cons=
idering a variety of options to change the airline, including a possible =
employee purchase of the world's largest carrier.

"Furloughs, while regrettable, are resulting from the overage under the t=
erms of our existing agreement," American Airlines said in a statement.

"Therefore, they were never included in the $660 million in structural co=
ntract changes. We discussed this issue with the APA a number of weeks ag=
o and several times recently," it said.

An American spokesman added the airline has not increased the $1.8 billio=
n in wage concession it was seeking in order to help stave off bankruptcy=
=2E

AMR shares closed down 7 cents, or 3.1 percent, to $2.19 in trading on th=
e New York Stock Exchange. =



=A92003 Reuters Limited. =


Roger
EWROPS

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