Kevin Cokely and Chris Van Horne, NBC 5 News
The pilots union for American Airlines says it and the company have reached an agreement in principle for a new contract. If approved by the pilots in three weeks, the contract would help pave the way for the Fort Worth-based airline to exit bankruptcy.
APA, AA Reach Agreement in Principle
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The Allied Pilots Association and American Airlines have an agreement in principle.
NBC 5 has learned that the APA has put together their last, best offer that includes specifics with regard to no more furloughs and regional jets only having 76 passenger seats.
The APA Board of Directors presented the deal to the airline Friday afternoon and management with the company agreed to the proposal.
"APA designed our comprehensive counter-proposal to provide our pilots with an industry-standard contract while enabling American Airlines to complete a successful restructuring and compete on a level playing field with its network-carrier peers. The Board's vote on the motion to present the comprehensive counter-proposal was 13 for, two against and one absent," the APA said in a news release.
"The proposal we prepared was comprehensive and will level the playing field for American Airlines to compete successfully with/against United and Delta airlines and also recognizes the value that the profession brings to the corporation," said APA President Keith Wilson said.
"We are pleased to have reached an agreement-in-principle with the Allied Pilots Association. We worked hard with the APA's negotiating committee to structure an agreement that addresses the priorities identified as most important to our pilots, while staying within the economic framework supported by the Unsecured Creditors' Committee to ensure American's successful restructuring. As the APA communicated, the APA Board of Directors will proceed in compliance with policy-manual requirements and vote to send the agreement-in-principle to the membership as a tentative agreement for a ratification vote," American Airlines spokesman Bruce Hicks said in a statement.
APA members could possibly vote on the tentative agreement in early December. The APA Board of Directors has seven days to review the agreement before voting whether to send it to members.
NBC 5's Kevin Cokely contributed to this report.
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