Union head says delay in AMR case boosts takeover - 13 WTHR Indianapolis

Union head says delay in AMR case boosts takeover

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DALLAS -

The head of the pilots' union says the latest delay in American Airlines' bankruptcy case increases the chances that the company will be taken over, presumably by US Airways. Keith Wilson says the union's advisers believe that US Airways will pursue a merger, even if American's management opposes a deal.

Wilson is president of the Allied Pilots Association, which favors a merger that would have US Airways management run the combined company.

American parent AMR asked for another month of exclusive rights to present a turnaround plan in federal bankruptcy court. Wilson says creditors may have pushed the delay to give merger talks more time. A committee representing AMR's unsecured creditors supported the extra time.

Both airlines declined to comment. AMR and US Airways agreed several weeks ago to exchange confidential financial information.

American and the pilots' union are negotiating a new contract that would replace pay and working terms that American imposed in September. The union says the sides have made progress. Talks resumed last month after American threatened to haul the union into court over what the company considers an illegal work slowdown by pilots.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

 

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