American Airlines has offered a new contract to the Allied Pilots Association, which represents its pilots. The two options include pay raises over the next three years, but the union has asked for higher increases than the company is offering. Negotiations have been put on hold while the boards of the union and company meet this week. The company is expected to discuss its options regarding bankruptcy. American is hoping to cut labor costs as part of a strategy to avoid bankruptcy. The union says that its demands are reasonable, and that they want to continue bargaining with the airline.
See "AMR Bankruptcy Risk Raises as Lack of Pilot Deal Cuts Options", Mary Schlangenstein, Business Week, November 15, 2011