AMR flight attendants sign a contract to push for US Airlines Merger

AMR flight attendants

AMR flight attendants

A contract offer has been signed by AMR flight attendants. The ratification of the contract means that the cost in bankruptcy protection will be probably cut. As it was stated by the Association of Professional Flight Attendants, almost 59.5 percent flight attendants voted to accept the contract, compared to 40.5 percent who turned down the offer. According to AMR flight attendants leaders, the result of voting shows the strong support for a merger between AMR and US Airways.

Yes for the contract offer

According to data, 59.5 percent of AMR flight attendants voted for American’s final offer, compared to 40.5 percent rejecting it.  The approval of the contract offer means that American is not expected to ask the U.S. Bankruptcy Court judge for a supervision of the restructuring of AMR Corp., which would mean changing the current contract, imposing radical terms such as more working hours per month and smaller raises.

But voting for the proposal was not so easy to achieve. For the last couple of days, the union’s leadership had campaigned for voting as at the same time it warned that 2,000 flight attendants could be forced to take unpaid leave, if the offer had been rejected. According to American’s statement, the flight attendant ratification should be viewed as “an important step forward in our restructuring.” Moreover it has been stated, that AMR flight attendants’ “yes” means that employees will benefit more than in case of saying “no” to AMR flight attendants’ ratification.

Bruce Hicks, a spokesman for American Airlines, is deeply convinced that the AMR flight attendants’ ratification is a step into right direction to have a successful restructuring of the company. He is also aware that the decision was not easy for AMR flight attendants.

By voting for the contract ratification, AMR flight attendants have joined the other 7 union groups represented by Transport Workers Union, which had already done it. However, AMR flight attendants has emphasized that their decision should not be considered a vote of support for American Airline’s executives.  According to APFA officials, the current management team is to be blamed for the tragic financial situation of American Airlines. In addition, the union strongly believes that the best solution for American Airlines is a merger with US Airways Group Inc. AS for US Airways, it has been pushing a merger with AMR Corp., which is the parent company of American Airlines, for a long time.

A problem with AMR pilots

The Allied Pilots Association had rejected to sign a contract agreement.  The new contract proposal was submitted last Friday; as a result the hearing in that offer is scheduled for 4th of September.

The contract signed by pilots is needed to continue changes ongoing in the company. Only the contract recently signed by AMR flight attendants will help to reduce spending by $195 million per year. However the contract should be signed by the court before it goes into effect. Currently pilots should be convinced to sign the proposal.

Avatar
Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

What to expect from Apple’s Spring Loaded Event on April 20

What to expect from Apple’s Spring Loaded Event on April 20

On April 20, Apple CEO Tim Cook will take the stage to walk us down memory lane. The company’s ‘Spring Loaded’ event on Tuesday will usher in the launch of Apple’s next-gen
53 mins ago
Facebook’s Clubhouse clone to launch in summer

Facebook’s Clubhouse clone to launch in summer

Facebook Inc. on Monday announced it will launch several audio-centric products that can help it compete against Clubhouse, an audio-only chatting app that exploded in popularity d
59 mins ago
IBM revenue beats estimates, buoyed by cloud strength

IBM revenue beats estimates, buoyed by cloud strength

During IBM’s earnings call with analysts, Krishna said he knew that the January transformation in IBM’s strategy to invite more ecosystem partners would “take time for result
4 hours ago
Goldman Sachs invests $69 million in fintech Starling

Goldman Sachs invests $69 million in fintech Starling

Goldman Sachs Growth Equity has invested £50 million ($69 million) in UK digital bank, Starling. The investment is in addition to the bank’s oversubscribed £272 million Ser
19 hours ago
Apple to launch hybrid TV set-top with speaker

Apple to launch hybrid TV set-top with speaker

Apple is bolstering its smart home devices space with the introduction of a new hybrid device— a combination of an Apple TV and a smart speaker with a screen, according to news r
24 hours ago
Leading Japanese automaker Toyota previews the future of EV – the bZ4x

Leading Japanese automaker Toyota previews the future of EV – the bZ4x

One of the most trusted pioneers of technology in the automotive sector, Toyota Motor Corp. has finally revealed the future of the EV segment by showcasing its new SUV, encompassin
24 hours ago