This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ American Air Gets Concessions From 2 of Its 3 Main Unions April 15, 2003 By KENNETH N. GILPIN The AMR Corporation, parent of the world's largest airline, appeared to stave off filing for bankruptcy protection today after two of its three biggest unions agreed to substantial cuts in jobs, pay and benefits. A bankruptcy filing remained a possibility, however, because as of early this afternoon the results of the vote by the third union, the Association of Professional Flight Attendants, had not yet been released. The union's board was holding a closed-door meeting to discuss the vote. Earlier, American Airlines mechanics, baggage handlers and other ground workers joined the carrier's pilots in approving big concessions to keep the airline solvent. The Transport Workers Union, which represents more than 34,000 mechanics and ground workers at American, ratified a concession agreement that would cut their wages and benefits by some $620 million a year. More than 53 percent of the members who voted cast their ballot in favor of the deal. Up to 1,400 ground workers stand to lose their jobs as a result of the vote. The Allied Pilots Association said 69 percent of the pilots who voted approved $660 million in concessions from their members. American has 12,000 pilots. The agreement calls for 2,500 pilots to lose their jobs. The agreement would affect 24,000 flight attendants who work at American. The carrier wants the flight attendants to approve $340 million in job and wage cuts. About 2,000 flight attendants will need to leave the airline. American, which has been battered by a weak economy, fears of terrorism and competition from low-cost carriers on 80 percent of its routes, has said it needs up to $1.8 billion in labor concessions in order to avoid filing for protection from its creditors under Chapter 11 of the Federal Bankruptcy Code. On Monday, the flight attendants' union asked for more time to vote because of problems with balloting. American denied the request. With its two most important unions approving the wage and benefit cuts, airline analysts said American would be less likely to file for bankruptcy protection if the flight attendants vote down the proposed cuts. If the flight attendants balk, pressure from the other two unions to hold another vote will intensify, the analysts said. Even if it is successful in wringing the concessions out of all three unions, there is no guarantee that American's financial difficulties are at an end, analysts said. If the economy remains weak and demand from all-important business travelers does not pick up soon, the carrier could face another crisis in six months or so, the analysts said. AMR, American's Fort Worth-based parent, has lost nearly $5.3 billion in the last two years and continues to lose about $5 million a day. In a report disclosed earlier today, Ernst & Young, AMR's auditor, questioned the company's ability to stay in business, citing the carrier's "significant losses and uncertainty about its ability to cut operating costs. Despite those doubts, investors remained hopeful. This afternoon, AMR's shares were trading up 96 cents, to $4.04 a share. Earlier in the session the stock traded as high as $4.19. http://www.nytimes.com/2003/04/15/business/15CND-AIR.html?ex=1051439375&ei=1&en=6abfc3110edb34d2 HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company